Industrial Bank of Korea's (KRX:024110) largest shareholders are state or government with 59% ownership, institutions own 22%

Key Insights

• The considerable ownership by state or government in Industrial Bank of Korea indicates that they collectively have a greater say in management and business strategy
• 59% of the company is held by a single shareholder (Ministry of Economy and Finance)
• 22% of Industrial Bank of Korea is held by Institutions

To get a sense of who is truly in control of Industrial Bank of Korea (KRX:024110), it is important to understand the ownership structure of the business. With 59% stake, state or government possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutions, on the other hand, account for 22% of the company's stockholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.

Let's take a closer look to see what the different types of shareholders can tell us about Industrial Bank of Korea.

Check out our latest analysis for Industrial Bank of Korea

What Does The Institutional Ownership Tell Us About Industrial Bank of Korea?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Industrial Bank of Korea does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Industrial Bank of Korea's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Industrial Bank of Korea. The company's largest shareholder is Ministry of Economy and Finance, with ownership of 59%. This implies that they have majority interest control of the future of the company. KDB Infrastructure Investments Asset Management Co., Ltd is the second largest shareholder owning 7.2% of common stock, and National Pension Service holds about 5.1% of the company stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Industrial Bank of Korea

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public, who are usually individual investors, hold a 18% stake in Industrial Bank of Korea. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with Industrial Bank of Korea .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.