South Korea’s Financial Supervisory Service published preliminary 2025 earnings and financial soundness data for specialized credit finance companies, showing weaker profitability at the eight credit card companies and sharply higher profits for specialized credit finance companies excluding credit card companies. Credit card companies reported IFRS net income of KRW2.3602 trillion for 2025, down 8.9% year on year, while other specialized credit finance companies reported net income under regulations of KRW3.5524 trillion, up 43.1%. For credit card companies, total revenues were broadly flat as higher loan-related revenues and installment fees were offset by a decline in merchant fees, while total expenses rose on higher interest and loan loss expenses. Asset delinquency improved to 1.52% at end-December 2025 (from 1.65% a year earlier); the substandard-or-below ratio was 1.15%, the NPL coverage ratio was 106.2%, and the adjusted capital adequacy ratio increased to 21.1%. For specialized credit finance companies excluding credit card companies (183 firms), revenue growth was driven by higher lease, rental and installment fee income and increased securities-related income, while interest and loan loss expenses declined; end-December 2025 delinquency was 2.11%, the substandard-or-below ratio fell to 2.66%, NPL coverage rose to 134.5%, and adjusted capital adequacy increased to 19.0%. The dataset also showed credit cards outstanding rising to 134.66 million at end-December 2025 (while check cards fell to 105.26 million), total credit and check card purchases increasing to KRW1,225.1 trillion in 2025, and cash advances and card loans rising to KRW110.3 trillion, with long-term card loans up 17.0% and short-term loans down 4.6%.
South Korea Financial Supervisory Service 2026-03-19
South Korea Financial Supervisory Service publishes 2025 results showing credit card companies’ net income fell to KRW2.36 trillion while other specialized credit finance firms rose to KRW3.55 trillion
The South Korea Financial Supervisory Service released preliminary 2025 data showing an 8.9% decline in net income for credit card companies to KRW2.3602 trillion, while other specialized credit finance companies saw a 43.1% increase to KRW3.5524 trillion. Credit card companies had flat revenues with rising expenses, improved asset delinquency, and increased capital adequacy. Specialized credit finance companies, excluding credit card companies, benefited from revenue growth in leases and securities, with improved delinquency and capital adequacy metrics.