Major financial groups post record profits in H1 in S. Korea despite slowdown

Seoul, July 27 Four major financial holding companies in South Korea posted record earnings in the first half of this year despite economic uncertainties and declining interest rates, data showed on Sunday.

The combined net profit of KB Financial, Shinhan Financial, Hana Financial and Woori Financial totalled 10.33 trillion won (US$7.47 billion) during the first six months of 2025, marking a 10.5 percent increase from the same period a year earlier, according to their regulatory filings, reports Yonhap news agency.

KB, Shinhan and Hana each posted double-digit on-year growth in net profit, setting new records for first-half earnings.

In detail, KB saw its profit surge 23.8 percent on-year in the first half to 3.44 trillion won. Shinhan came in a distant second, reporting 3.04 trillion won in net profit, up 10.6 percent on-year.

Hana Financial's net profit advanced 11.2 percent to 2.3 trillion won during the cited period.

But Woori posted a decline in the first-half reading, with net profit falling 11.6 percent to 1.55 trillion won.

The four financial groups earned a combined 21.09 trillion won in interest income in the January-June period, despite the Bank of Korea (BOK)'s monetary easing cycle that began late last year.

Their non-interest income also rose 7.2 percent on-year to 7.21 trillion won.

Officials said that declines in interest rates and the won-U.S. dollar exchange rates led to an overall increase in gains from securities, foreign exchange and derivatives.

Higher fees from bank retirement pensions, bancassurance sales commissions and securities brokerage commissions also helped increase their non-interest income.

The outlook for the second half, however, is not optimistic, as financial authorities have instructed banks to halve their total household loan targets for the remainder of the year amid growing concerns over surging household debt.

President Lee Jae Myung has also urged financial institutions to focus more on expanding investments, rather than "clinging to easy interest gains from mortgage loans."

The holding companies have announced measures to boost shareholder value, including additional share buybacks.

KB Financial said it will buy back and cancel 850 billion won worth of its own stocks, while Shinhan and Hana announced similar measures worth 800 billion won and 200 billion won, respectively.

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