South Korea’s Financial Supervisory Service published its 2025 review of domestic financial holding companies, showing continued growth in consolidated assets and net income alongside some weakening in selected financial stability indicators. Consolidated assets rose 8.3% year on year to KRW 4,067.4 trillion at end-December 2025, while consolidated net income (excluding holding companies) increased 12.4% to KRW 26.7 trillion. Ten domestic financial holding companies operated at year-end 2025, with subsidiary units increasing to 343 from 335 as 20 entities were added and 12 liquidated. Banking represented 72.6% of assets and 57.4% of net income, with financial investment expanding sharply in both assets (+23.3%) and net income (+62.3%), while insurance sector net income declined 6.1%. Bank holding companies reported a BIS total capital ratio of 15.75% (Tier 1 14.81%, CET1 13.15%), and non-bank holding companies’ capital adequacy ratio was 161.66%, down 6.29 percentage points; the 2025 figures were described as preliminary. Asset-quality and leverage metrics also moved higher, with substandard-or-below loans at 0.95%, provision coverage down to 106.8%, the debt ratio up to 32.2%, and the double leverage ratio rising to 114.7%. The FSS stated it will encourage holding groups to tighten financial stability management and strengthen loss-absorbing capacity, assess potential risks from diversified business portfolios and intensify monitoring of unfair business conduct, and continue regulatory and other support for “productive and inclusive finance”, including venture capital supply and financial assistance for vulnerable groups.
South Korea Financial Supervisory Service 2026-04-09
South Korea Financial Supervisory Service publishes 2025 financial holding company earnings with assets at KRW 4,067.4 trillion and net income at KRW 26.7 trillion
The South Korea Financial Supervisory Service’s 2025 review of domestic financial holding companies reported 8.3% year-on-year growth in consolidated assets to KRW 4,067.4 trillion and a 12.4% rise in consolidated net income to KRW 26.7 trillion, alongside weaker financial stability indicators. Banking remained dominant, financial investment income rose sharply, insurance income declined, and capital, asset quality and leverage metrics indicated higher risk. The authority will press holding groups to bolster financial stability and loss-absorbing capacity, improve risk assessment of diversified portfolios and unfair conduct, and support “productive and inclusive finance” initiatives.