The South Korea Financial Supervisory Service published its review of the capital adequacy of seven designated financial conglomerates as of end-June 2025, showing the sector’s aggregate capital adequacy ratio at 175.2%, up 0.9 percentage points from end-December 2024 and above the 100% regulatory standard. Integrated equity increased 5.3% to KRW 180.1 trillion, supported by higher retained earnings and equity securities issuances in the insurance sector, while aggregate requisite capital rose 4.8% to KRW 102.8 trillion, mainly reflecting higher disability and morbidity risks in insurance. Individual ratios ranged from 204.2% (DB) and 189.0% (Samsung) to 152.0% (Hanwha) and 147.8% (Hyundai Motor), with aggregate assets for the seven groups rising to KRW 1,382.0 trillion and first-half net income totaling KRW 8.3 trillion. The FSS said it will continue to monitor capital adequacy trends and guide financial conglomerates to strengthen internal controls and manage risk factors.
South Korea Financial Supervisory Service 2025-11-20
South Korea Financial Supervisory Service reports financial conglomerates’ capital adequacy ratio at 175.2% as of June 2025
The South Korea Financial Supervisory Service reviewed the capital adequacy of seven financial conglomerates as of June 2025, reporting an aggregate capital adequacy ratio of 175.2%, up from 174.3% in December 2024 and above the 100% regulatory standard. Integrated equity rose 5.3% to KRW 180.1 trillion, driven by increased retained earnings and equity securities issuances, while requisite capital increased 4.8% to KRW 102.8 trillion due to higher insurance risks. The FSS will continue monitoring trends and advising on risk management and internal controls.