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Financial holding groups and the brokerage industry are announcing plans for major stock buybacks and cancellations, aligning with the government's Corporate Value-up Program.

With the policy expected to be in full swing within the second half of this year, these stocks could gain momentum once again amid the volatility, according to market observers, Monday.

According to the Financial Supervisory Service's electronic disclosure system, KB Financial Group will complete the retirement of about 9.98 million treasury stocks — worth 800 billion won ($583.4 million) — by September. The shares being canceled include 5.58 million shares acquired last August and 4.4 million shares purchased this February.

On Sunday, Woori Financial Group announced plans to increase its total shareholder return ratio to up to 50 percent, while actively making efforts to bolster its company value.

Shinhan Financial Group is currently buying back shares on the open market to cancel an additional 6.89 million shares, worth 300 billion won, by the end of October. In March, Shinhan also acquired and canceled 3.36 million shares.

Hana Financial Group plans to cancel about 5.11 million shares of treasury stock, worth 300 billion won, on Aug. 19. This is nearly double the number of shares it canceled last year.

Their moves are interpreted as a step to enhance resilience after their stocks plunged on Aug. 5, the day when the Seoul bourse collapsed amid concerns over a U.S. economic recession.

Securities firms that were previously less active in stock buybacks and cancellations are now joining this trend, driven by increasing market attention to shareholder returns.

Mirae Asset Securities will purchase 10 million shares of its stock, valued at 79 billion won, on the open market between Aug. 8 and Nov. 7. All acquired shares will be canceled following the purchase. In February, the firm had also bought back and canceled 10 million shares of common stocks.

Kiwoom Securities, according to its corporate value enhancement plan announced in March, is committed to canceling 2 million treasury shares it has already acquired. One-third of these shares will be canceled annually from 2024 to 2026.

Market observers anticipate that the upcoming launch of the Corporate Value-up index next month — an index composed of companies that have shown or proven improvements in their valuations — will likely trigger another surge in financial stocks, which experienced a temporary lull recently.

This year, the stock price of KB Financial rose by 55.22 percent until Aug. 2, reflecting market excitement. Shinhan, Woori and Hana also saw increases of 45.11 percent, 17.83 percent and 44.86 percent, respectively, during the same period.

"The launch of the Corporate Value-up index in September, along with banks' official value enhancement disclosures in October, is expected to act as a significant momentum driver," Hana Securities analyst Choi Chung-uk said.