The South Korea Financial Supervisory Service published preliminary first-half 2026 results showing higher earnings across specialized credit finance companies, alongside some deterioration in asset quality. Eight credit card companies reported IFRS net income of KRW1.2934 trillion, up 5.6% year over year, while 189 non-card specialized credit finance companies recorded net income of KRW2.2352 trillion, up 25.4%. The gains reflected higher merchant and installment fees at card companies and stronger securities-related and new technology financing income at non-card companies, supported by lower loan-loss expenses in both groups. Credit card companies’ aggregate delinquency rate edged up to 1.54% at end-June from 1.52% at end-December 2025, including a rise in the card-loan delinquency rate to 3.35%. Their substandard-or-below loan ratio declined to 1.13%, while the nonperforming loan coverage ratio fell to 105.6% and the adjusted capital adequacy ratio declined to 20.8%. Among non-card companies, the delinquency rate rose to 2.29% and the substandard-or-below loan ratio increased to 2.85%, while the adjusted capital adequacy ratio edged up to 19.1%. Credit and check card purchases increased 6.7% year over year to KRW635.3 trillion. Cash advances and card loans rose 9% to KRW56.1 trillion, driven by a 20.9% increase in long-term card loans, while short-term cash advances declined 0.8%.
2026-08-27South Korea Financial Supervisory Service
South Korea’s Financial Supervisory Service reports higher first-half earnings and rising delinquencies at specialized credit finance companies
The South Korea Financial Supervisory Service reported that first-half net income rose 5.6% to KRW1.2934 trillion at credit card companies and 25.4% to KRW2.2352 trillion at non-card specialized credit finance companies. Delinquency rates increased to 1.54% and 2.29%, respectively, while capital ratios remained above 19%. Card purchases grew 6.7%, and long-term card loans rose 20.9%.