On the 14th, insurance sector stocks are showing a strong upward trend. This is due to expectations that insurance stocks will benefit from the recently proposed amendments to the Commercial Act and the government's policies aimed at enhancing shareholder value.
As of 10:04 a.m. on the 14th, Samsung Life Insurance is trading at 145,100 won, up 13,500 won (10.26%) from the previous trading day in the securities market.
At the same time, Samsung Fire & Marine Insurance, DB Insurance, Hanwha General Insurance, Hyundai Marine & Fire Insurance, and Korean Re are also seeing an increase in stock prices.
There are indications that the stock prices of insurance companies will rise due to the government's policy trends focused on mandatory treasury stock cancellation and expanded dividends.
Jeon Bae-seung, a researcher at LS Securities, noted in a recent report that "the insurance sector is emerging as a representative beneficiary of policies directly linked to expanding shareholder returns, such as the passage of the amendments to the Commercial Act, the proposal for mandatory treasury stock cancellation, and discussions on separate taxation for dividend income."
He added, "The average ratio of treasury stock held by major insurance companies is 13.4%, and the dividend payout ratio, which serves as the basis for separate taxation, already exceeds 35%. A rapid increase in the dividend payout ratio is expected during the implementation process of the corporate value enhancement plan."