NH Investment & Securities to carry out 50 billion won buyback

Finance

Published: 12 Mar. 2024, 15:32 Updated: 12 Mar. 2024, 16:48

NH Investment & Securities to carry out 50 billion won buyback

Park1 Tower, the headquarters of NH Investment & Securities in Yeouido, western Seoul [YONHAP]

NH Investment & Securities will buy back and burn common shares worth 50 billion won ($38 million) in its first buyback in 13 years.

The brokerage firm said on Tuesday the decision has been made in order to improve the company’s shareholder return along with a government policy that pointed to weak shareholder return as one of the factors hindering Korea’s stock market from booming.

The last time NH Investment & Securities bought back and burned stocks was in 2011 with a total value of 30 billion won.

The company will also spend 280.8 billion won in dividends, or 800 won per common stock and 850 won per preferred stock. The total spending for dividend payouts is up 14 percent from a year earlier.

“The latest decisions are preemptive measures taken in step with the government’s corporate value-up program and as an effort to improve shareholder value by strengthening the shareholder return policy,” said the company in a statement.

Yoon Byung-un [YONHAP]

NH Investment & Securities nominated executive vice president Yoon Byung-un for CEO of the company in a board meeting on Monday.

Born in 1967, Yoon graduated from Hankuk University of Foreign Studies and started working for the firm, formerly known as LG Investment & Securities, in 1993. He played a major role in advancing the company’s investment banking, NH Investment & Securities said.

The company’s general meeting of shareholders will take place on March 27.

BY JIN MIN-JI [jin.minji@joongang.co.kr]