The South Korea Financial Supervisory Service reported that the country’s 10 domestic financial holding companies generated consolidated net income of KRW 17.6 trillion in the first half of 2026, up 13.7% from a year earlier. Growth was driven by the financial investment sector, where net income rose 72.8% to account for 24.9% of the total, while banking sector earnings fell 7.9% but remained the largest contributor at 47.1%. Consolidated assets increased 8.0% over six months to KRW 4,391.0 trillion, led by a 27.0% expansion in financial investment assets and a 6.1% increase in banking assets. Capital ratios generally improved or remained stable, with banking holding companies’ common equity Tier 1 ratio rising 0.21 percentage points to 13.36% and the total capital ratio holding at 15.75%. However, the ratio of loans classified as substandard or below increased from 0.95% to 1.03%, while the provision coverage ratio fell 10.3 percentage points to 96.5%. Debt and double leverage ratios also rose to 33.1% and 117.3%, respectively. In response, the Financial Supervisory Service plans to press financial holding companies to strengthen loss absorbing capacity and financial stability management, while monitoring risks from diversified business portfolios and unfair business conduct.
South Korea Financial Supervisory Service reports 13.7% rise in financial holding company earnings as asset quality weakens
The South Korea Financial Supervisory Service reported that financial holding companies’ first half net income rose 13.7% to KRW 17.6 trillion, driven by financial investment businesses, while consolidated assets reached KRW 4,391.0 trillion. Capital ratios were stable or stronger, but asset quality and coverage weakened as substandard or below loans increased and the provision coverage ratio fell to 96.5%. The regulator plans closer risk monitoring and will press firms to strengthen loss absorbing capacity.