South Korea\'s savings banks posted 333.8 billion won in net profit in the first quarter, extending a return to the black helped by lower provisions and cleanup of problem property project financing. Some operating indicators improved and capital ratios stayed solid, but delinquency and non-performing loan ratios rose. Lending to mid- and lower-credit borrowers shrank by more than 1 trillion won from a year earlier, raising concerns about weakening support for households and small businesses.

South Korea\'s financial authorities have begun overhauling the private debt collection market after President Lee Jae-myung publicly criticised practices in collecting long-overdue debt. The plan would shift the business of buying and collecting non-performing loans to a licensing system, limit eligible operators to firms majority-owned by financial companies and raise minimum capital requirements. Regulators say the current market structure fuels long-term and excessive collection and is difficult to supervise effectively.