The nation’s chief financial regulator has expressed his skepticism toward major financial groups’ plan to offer its shareholders generous dividends.
“Though it is important to maximize shareholder rights, it is also important for financial companies to protect customer rights,” Financial Supervisory Service Gov. Kwon Hyouk-se told reporters on Tuesday.
It would be desirable for major financial groups to discuss the issue of dividends after carrying out social activities and financing for the low-income bracket, he said.
His remarks come as foreign investors are expected to scoop up more than half of the coming dividends at Korea’s four major financial holdings companies ― KB Financial, Woori Financial, Shinhan Financial and Hana Financial ― this year.
The situation is spurring concerns about capital flight in an industry increasingly tapped by foreign investors.
Apart from state-run Woori Financial Holdings, where foreign ownership is 21.7 percent, the majority stake at three other major financial institutions belongs to foreign investors.
Foreign investors currently have 63.4 percent of KB, 61.1 percent of Shinhan and 65.7 percent of Hana.
