Search results for Korea Federation of Savings Banks
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.
Finance
Savings banks enter second round of online investment-linked investments as 20 firms added to innovative finance service
The Korea Federation of Savings Banks said 20 savings banks, including Acuon, were additionally designated for the Financial Services Commission’s online investment-linked innovative finance service and plan to start within the first quarter. The service, first designated in 2024 and launched in May 2025, has supplied about 160 billion won via six online investment firms. Delinquency stood at 0.6 percent as of end-December, it said.
