Hanyang Securities executives buy company shares in show of accountability

Executives and staff at Hanyang Securities have been buying company shares this year in a series of moves signaling their commitment to accountable management.

According to DART, the Financial Supervisory Service's electronic disclosure system, Kim Byung-chul, vice chairman and chief executive of Hanyang Securities, purchased a total of 12,100 shares in five separate transactions beginning in March.

Senior executives have also joined the effort. Lee Jun-gyu, head of the capital markets division, acquired an additional 4,000 shares in May, while Park Sung-ju, head of the CM division, and Kim Tae-yeon, head of the bond markets division, each made new purchases in June — 9,602 shares and 976 shares, respectively.

"The buybacks demonstrate confidence in the company's growth potential and corporate value," Hanyang Securities said, adding that the number of employees consistently buying company shares out of a positive view of its long-term prospects continues to grow.

One employee who bought shares said the decision reflected an optimistic view of the company's growth strategy and earnings structure. "I bought the shares with the idea of investing in the company's future alongside it," the employee said.

Within the firm, a growing number of executives are considering additional share purchases, driven by a widening perception that the current share price is undervalued relative to the company's capital base and profitability.

Hanyang Securities has been accelerating efforts to restructure its operations and secure new growth drivers since KCGI PEF became its largest shareholder in June last year. In June this year, the company raised 50 billion won ($32.5 million) through a third-party allotment rights offering directed at its largest shareholder to bolster its equity capital.

The company plans to maintain the shareholder return policy it outlined in its value-up disclosure earlier this year — keeping its dividend payout ratio above 30 percent and paying a minimum of 1,600 won per common share. It is also pursuing a growth strategy aimed at reaching 1 trillion won in equity capital by 2030.

Hanyang Securities posted sales of 511.3 billion won and operating profit of 26 billion won in the first quarter of this year.

moon@heraldcorp.com