Foreign ownership of shares in major South Korean banking groups, including KB, Shinhan, Hana, and Woori, has reached a record high of 62.7 percent, driven by government and corporate initiatives to boost local stock values. This represents a 3.1 percent increase from the end of the previous year, significantly outpacing the average 1 percent increase observed on the Kospi stock exchange. The surge in foreign holdings is attributed to the efforts of the banking firms to expand shareholder returns, as well as the Corporate Value-up Program initiated by local regulators to address the underperformance of Korean stocks. As part of their efforts to boost shareholder returns, the banking groups have unveiled various measures, including increased treasury share cancellations and the implementation of quarterly dividends. These initiatives have resulted in a significant improvement in the shareholder returns rate of finance firms, with the stock prices of the four banking groups surging by an average of 35 percent since the beginning of the year. Despite the recent surge in stock prices, the average price-to-book ratio (PBR) for banking stocks remains low at 0.4, indicating that the long-term sustainability of the rally will depend on the effectiveness of the government's plans for the value-up scheme. In summary, foreign ownership of shares in South Korean banking groups has reached a record high, driven by efforts to boost local stock values and expand shareholder returns. The government's Corporate Value-up Program and the banking firms' initiatives have contributed to the surge in foreign interest, resulting in a significant increase in stock prices. However, the long-term sustainability of this trend will depend on the effectiveness of the government's plans for the value-up scheme and the potential for continued foreign investment in Korean finance stocks.