Hana Expected to Shun FSS Advice Against Paying Dividends

Hana Financial Group is expected by securities analysts to pay dividends to its shareholders at the end of the first half against the Financial Supervisory Service (FSS) recommendation in strengthening reserves.

The FSS urged Korean financial services firms to cut such payments during the pandemic to maintain their ability to support businesses.

Securities analysts like Eun Kyung-wan of Meritz expect Hana to pay dividends to its shareholders as usual, with financial authorities' recommendation seen as less reasonable recently.

SK Securities analyst Koo Kyung-hoi noted that Hana's stock prices would depend on whether they pay dividends.

The deadline for its interim dividend payments is June 30.

Hana is the only financial holding company in Korea that pays interim dividends to shareholders and has done so ever since it launched a holding company structure in 2005.

The payments also consistently grew annually from 150 won in 2015 to 500 won in 2019.

Hana Financial Group's shares have come close to 32,000 won this month, after plummeting to 18,450 won on March 20.