Hanwha Life has been showing strong performance for four consecutive days. This is interpreted as being influenced by expectations of benefiting from legislation strengthening shareholder returns, such as the company’s share buyback policy and the separate taxation of dividends.
At 9:30 a.m. on the 10th, Hanwha Life was trading at 4,105 won, up 350 won (9.32%) from the previous trading day. Hanwha Life has risen about 18% over the three days since the 7th.
With the ruling party’s proposed inheritance and gift tax amendment and the mandatory share buyback law both expected to pass, it is interpreted that investors are flocking to Hanwha Life.
The inheritance and gift tax amendment includes provisions for applying an evaluation method that reflects assets and revenues when levying taxes on stocks below a PBR of 0.8, similar to private stocks. Additionally, companies with a high ratio of treasury stock are expected to see an immediate increase in corporate value due to a decrease in the number of shares during buybacks, leading to concentrated buying by investors. Hanwha Life’s treasury stock ratio is 13.5%.