The South Korea Financial Supervisory Service published its 2025 review of domestic banks' overseas businesses, showing continued expansion, slightly higher earnings and stable localization scores. Overseas operations rose to 211 sites across 41 countries, aggregate assets increased 7.4% year on year to USD233.13 billion, net income rose 2.3% to USD1.651 billion, and the ratio of loans classified as substandard or below fell to 1.36% from 1.46%. The network added one subsidiary and four branches and closed one office, while Asia remained the main footprint with 67.3% of all overseas operations. Loans were the largest asset class at USD126.78 billion, and asset growth was particularly marked in the United Kingdom and Japan. Interest income rose by USD162 million to USD3.801 billion and supported the increase in net income, although return on assets slipped to 0.71% from 0.74%. Asset quality remained weaker in ASEAN, where the SBL ratio was 3.55%, including 7.81% in Indonesia and 8.16% in Cambodia. The overall localization assessment stayed at 1+, while the headquarters globalization assessment remained at 2+.
South Korea Financial Supervisory Service2026-05-21
South Korea Financial Supervisory Service reports domestic banks' overseas assets rose 7.4% to USD233.1 billion and net income increased 2.3% in 2025
South Korea’s Financial Supervisory Service published its 2025 review of domestic banks’ overseas businesses, reporting continued network expansion, higher earnings and stable localization scores. Overseas assets rose 7.4% year on year to USD233.13 billion, net income increased 2.3% to USD1.651 billion and the substandard-or-below loan ratio improved to 1.36%, though asset quality remained weaker in ASEAN. Asia accounted for 67.3% of overseas operations, loans were the largest asset class at USD126.78 billion and return on assets was 0.71%.