South Korea's Four Major Banks Trade at 0.8x Book Value; Daishin Securities Flags Undervaluation on July 11

According to Daishin Securities researcher Park Hye-jin on July 11, South Korea's four major financial holding companies (KB, Shinhan, Hana, and Woori) are trading at an average price-to-book ratio of 0.8x, signaling an undervalued entry point for investors. The analyst recommended aggressive buying, citing improved profitability and expectations of increased capital returns in the second half of 2026.

Daishin projected combined second-quarter net income of 5.7 trillion Korean won, representing a 6.1% increase from record Q1 results. The firm maintained Shinhan and Hana Financial as top picks with target prices of 130,000 and 160,000 won, respectively, while raising Hana's target. KB Financial and Woori Financial Group targets were set at 220,000 and 43,000 won. Non-bank subsidiary expansion—including KB Securities capital increases and Hana's acquisition of Dunamu stakes—is expected to drive profitability gains.