This study examines the heterogeneous impact of Total Return Swaps (TRSs) on shareholder value, contingent on their purpose. TRS contracts are categorized based on variations in the separation of ownership and control: those amplifying control rights for governance objectives (increasing separation) versus those mitigating risk exposure (reducing separation). The effect on shareholder wealth is quantified through event study methodology, employing stock returns as a proxy. Findings indicate that governance driven TRSs precipitate an initial stock price decline followed by a recovery, predominantly benefiting controlling shareholders while potentially eroding minority shareholder value. Conversely, risk management TRSs foster positive stock return dynamics, yielding advantages for both controlling and minority shareholders. Conducted as a case study due to sample constraints, this research provides the first empirical evidence of purpose-specific TRS effects on stock prices in the Korean market, offering a robust foundation for subsequent theoretical and practical inquiries.