Key facts
- South Korean savings banks' net profit nearly tripled in the first half of 2026.
- Combined net profit reached 766 billion won (US$553 million) in January-June.
- This is up from 257 billion won in the prior year's first half.
- The increase was attributed to lower loan-loss reserves and investment returns.
- The delinquency rate increased to 6.26% by the end of June.
South Korean savings banks experienced a significant surge in net profit during the first half of the year, with their combined earnings tripling to 766 billion won (US$553 million) compared to the same period in 2025. This substantial increase was primarily driven by a reduction in loan-loss reserves and favorable investment returns.
Despite the improved profitability, the asset soundness of these institutions showed a slight deterioration. The overall delinquency rate advanced to 6.26 percent at the end of June, up from 6.04 percent at the close of 2025. The rate on corporate loans saw a notable increase, rising by 0.38 percentage points to 8.38 percent over the six-month period. Conversely, the delinquency rate for household loans saw a marginal decrease of 0.07 percentage points, settling at 4.6 percent.
The average capital adequacy ratio for savings banks stood at 15.73 percent as of June 30, a slight decrease of 0.12 percentage points from the previous half-year. Total assets held by savings banks reached 126 trillion won at the end of June, reflecting an increase of 2.6 trillion won since the end of December.