Hanwha Finance to hold AI, finance talent conference in New York

connections, while contributing to a stronger financial ecosystem linking Korea with global markets." Hanwha Finance, a collective term for Hanwha Group's financial affiliates, comprises Hanwha Life, Hanwha

Five museum shows to catch during Seoul's art week

through Friday and 7 p.m. on weekends, and is closed Mondays. "Georg Baselitz," Sehwa Museum of Art The retrospective at Sehwa, inside the Heungkuk Life Insurance building near Gwanghwamun, is the first

Dividends or buybacks: Samsung, SK hynix divide on AI windfall

Record return plans reflect different ownership structures as chipmakers seek lasting stock gains Samsung Electronics and SK hynix have unveiled their largest-ever shareholder return programs, moving to share more of the windfall from the artificial intelligence chip boom with investors. But the two chipmakers are taking sharply different routes. Samsung is leaning on dividends, while SK hynix is pursuing a massive share buyback and cancellation program — a contrast shaped by their different ownership and financial structures. SK hynix moved first with a 40 trillion won ($28.7 billion) plan to buy back and cancel shares, the largest such program ever announced by a Korean-listed company. The chipmaker plans to complete the purchases by November. Backed by 69 trillion won in net cash as of end-June, SK hynix also raised its shareholder return target from “within 50 percent of cumulative free cash flow” to “50 percent or more,” without specifying the total payout. Samsung followed with a program of dividends and share buybacks worth 90 trillion to 110 trillion won. At the upper end, the package would be more than five times its previous record of 20.3 trillion won in 2020. Samsung plans to distribute about 30 trillion won in third-quarter dividends, including its regular payout, and return another 60 trillion won to 80 trillion won after finalizing its annual results next January. It separately approved a 15 trillion won buyback to offset dilution from employee compensation. SK hynix bets on buybacks For SK hynix, the buyback plan supports the group's ownership structure. Parent SK Square must retain at least 20 percent of the chipmaker under Korean rules for holding companies. Canceling shares automatically raises SK Square's ownership ratio without requiring it to buy more shares, reinforcing its position as the controlling shareholder. The approach also aligns with SK Group Chairman Chey Tae-won's indirect control of the chipmaker through SK Inc. and SK Square. Chey directly owns only 3,620 SK hynix shares that he recently purchased, worth about 4.8 billion won. The cancellation also offsets dilution from the 17.79 million new shares issued for SK hynix’s recent Nasdaq American depositary receipt offering, which raised about 40 trillion won to fund new production facilities and equipment in Korea. The strategy effectively allows SK hynix to sell equity at a premium in the US and buy it back more cheaply in Korea. SK hynix said the decision was aimed at strengthening its competitiveness and supporting long-term growth, while noting that its intrinsic value was not fully reflected in the current share price — signaling that the program was also intended to lift its stock valuation. Samsung pays out cash Samsung's preference for dividends came as little surprise, given the regulatory and ownership constraints surrounding the company. Under Korea's Act on the Structural Improvement of the Financial Industry, financial companies cannot hold a combined stake of 10 percent or more in a nonfinancial affiliate. Samsung Life Insurance and Samsung Fire & Marine Insurance held 8.51 percent and 1.49 percent of Samsung Electronics, respectively, as of end-June, leaving them right at the 10 percent limit. If Samsung Electronics were to choose share cancellations, it would reduce its outstanding share count and automatically raise the insurers' combined ownership above 10 percent, forcing them to sell shares. Although such sales could generate sizable gains on shares acquired long ago at lower prices, they would shrink the group's affiliated-shareholder bloc and potentially weaken the founding family's influence over Samsung Electronics. Dividends avoid that disruption and offer better tax treatment, as 30 percent of the insurers' domestic dividend income is tax-exempt. They also directly benefit Samsung Electronics Chairman Lee Jae-yong and other family members, who hold the shares under their own names. Can record payouts sustain chip rally? Investors initially welcomed the record shareholder return plans, but their longer-term effect on the stocks will depend on whether the two chipmakers can sustain earnings and cash flow through the AI cycle. Samsung Electronics closed 3.87 percent higher at 281,500 won on Friday after touching 285,000 won, although it gave up some gains in after-hours trading. SK hynix rose 2.31 percent to 1.73 million won following its buyback announcement. For Samsung, the large cash payout could strengthen the stock’s appeal to dividend-focused investors and help narrow its valuation discount. “Higher cash returns, including special dividends, could highlight Samsung’s dividend yield and help the stock settle above 300,000 won in the near term,” said Kim Dong-won, head of research at KB Securities. He described Samsung as “a deeply undervalued stock offering both earnings growth and dividend appeal.” For SK hynix, the central question is whether the 40 trillion won buyback marks the start of a longer series of capital returns. Analysts estimate the chipmaker’s cumulative free cash flow over three years at 491 trillion won. At its minimum return rate of 50 percent, the shareholder return pool would exceed 245 trillion won. “This buyback is only an initial deployment,” said Park Jun-young, an analyst at Hanwha Investment & Securities. Additional buybacks exceeding 100 trillion won could progressively reduce the number of outstanding shares and increase earnings and value per share, he added. The immediate direction of both stocks, however, may still be shaped by broader conditions affecting the AI chip rally, including Nvidia’s earnings and US Treasury yields.

Hanwha Insurance’s Indonesian insurer extends record run

the Korean insurer became LGI's largest shareholder. Hanwha Insurance first entered the Indonesian insurer in 2023, when it acquired a 14.9 percent stake alongside PT Hanwha Life Insurance Indonesia's

KB wins approval under Indonesia’s stricter holding rules

Shinhan, Hanwha also reorganize local operations as Jakarta centralizes oversight of financial groups Indonesia’s tightening oversight of financial conglomerates is prompting major Korean financial

Hanwha Life overseas profit nears full-year 2025 level

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Three bidders submit final offers for KDB Life

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Hanwha promotes chairman’s three sons in leadership reshuffle

strategic projects. His younger brothers were also promoted in the reshuffle, which takes effect Aug. 1. Kim Dong-won, the chairman’s second son and president of Hanwha Life Insurance, was elevated to vice

Hanwha shareholders approve split, sharpening succession roadmap

shipbuilding and defense businesses overseen by Dong-kwan — Hanwha Aerospace, Hanwha Ocean, Hanwha Solutions — as well as financial units led by second son Kim Dong-won, including Hanwha Life Insurance. A newly

Financial groups reignite race for insurance deals

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