Search results for Korea Federation of Savings Banks
Finance
Savings banks sustain profit after PF cleanup; expanding loans for lower-credit borrowers remains task
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.
Finance
Savings banks return to profit after two years, but business normalisation still distant
South Korea\'s savings banks returned to profit in 2025 after two straight years of losses, but the turnaround was driven mainly by lower loan-loss provisions and higher securities income rather than a recovery in core business. Lending and interest income declined, and total assets fell. Regulators are seeking to redefine the sector’s role while pursuing regulatory easing alongside tighter discipline, as the industry warns business conditions remain difficult.
Finance
Savings banks special account extended one year; industry steps up soundness drive
South Korea’s Financial Services Commission will extend the operating period of the Deposit Insurance Fund’s special account for savings banks by 1 year, keeping it through end-2027 to handle remaining liabilities. The move follows an industry meeting where all financial sectors agreed to bear additional costs via deposit insurance premiums. Authorities expect a 1-year extension to be sufficient to clear residual debt, while the savings bank sector continues to dispose of non-performing assets and improve soundness.
