Finance
Capital region concentration, real estate bias spur calls for urgent medium- to long-term structural shift at savings banks
As financial authorities move to revamp savings banks with a focus on expanding productive finance, a report says the industry needs an urgent medium- to long-term shift away from a real estate-focused business model and concentration in the Seoul metropolitan area. The Korea Institute of Finance cited regional imbalances and high exposure to real estate and construction lending. It called for improved forward-looking credit assessment and measures to broaden lending and customer bases.