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Hana Financial Group. (photo = Yonhap news) |
[Alpha Biz= Paul Lee] Seoul, South Korea — July 28, 2025 — South Korean financial stocks tumbled in early trading Monday after President Lee Jae-myung publicly criticized major banks for so-called “interest profiteering,” adding to investor concerns over potential tax policy changes and regulatory pressure on the sector.
As of 9:45 a.m. KST, Hana Financial Group shares had fallen ₩6,600 (–7.14%) to ₩85,900, after earlier plunging as much as 8.32% intraday. Analysts cited disappointment with Hana’s recent shareholder return plan — a ₩200 billion share buyback and cancellation announced on July 25 — which fell short of market expectations, triggering a wave of selling.
Other major lenders also traded sharply lower: KB Financial (–5.64%), Shinhan Financial Group (–4.21%), and Woori Financial Group (–3.72%) all posted losses in tandem.
The sell-off comes as financial regulators convened an emergency meeting of industry association heads following the president’s remarks. Authorities are expected to discuss measures to encourage banks to shift from traditional loan-centered operations — which generated record profits — toward “productive finance,” channeling more capital into advanced industries, venture investment, and alternative sectors.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
