South Korea’s Financial Supervisory Service published its June 2025 update on capital adequacy for domestic banks and bank holding companies, showing a quarter-on-quarter increase in key ratios and ongoing compliance with regulatory minimums. For domestic banks, the common equity Tier 1 (CET1) ratio rose to 13.57% at end-June 2025, with the Tier 1 ratio at 14.87%, the total capital ratio at 15.95%, and the leverage ratio at 6.87%. Compared with end-March 2025, banks’ CET1 increased by 0.38 percentage points, Tier 1 by 0.36 percentage points, total capital by 0.29 percentage points, and leverage by 0.14 percentage points. The release also reported end-June 2025 ratios of 13.19% CET1, 14.87% Tier 1, 15.85% total capital, and 6.12% leverage for eight bank holding companies, and 14.90% CET1, 15.55% Tier 1, 17.04% total capital, and 6.63% leverage for 20 banks, noting the figures are preliminary and may be revised. The FSS indicated it will maintain careful prudential supervision amid heightened domestic and international uncertainty to support banks’ loss-absorbing capacity.
South Korea Financial Supervisory Service 2025-09-09
South Korea Financial Supervisory Service reports June 2025 bank capital ratios with CET1 rising to 13.57%
South Korea's Financial Supervisory Service reported a quarter-on-quarter increase in capital adequacy ratios for domestic banks and bank holding companies as of June 2025, with all entities complying with regulatory minimums. The common equity Tier 1 (CET1) ratio for domestic banks rose to 13.57%, the Tier 1 ratio reached 14.87%, and the total capital ratio was 15.95%. The FSS emphasized ongoing prudential supervision to bolster banks' loss-absorbing capacity amid global uncertainties.