AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

Kwon Ga-rim
  • Woori Financial Q1 Net Profit Slips 2.09% on Middle East Risks Despite Strong Fee Growth
    Woori Financial Q1 Net Profit Slips 2.09% on Middle East Risks Despite Strong Fee Growth Woori Financial Group said its first-quarter net profit edged down as a currency shock tied to Middle East risks weighed on results, despite a sharp rise in noninterest income. Woori Financial said April 24 that first-quarter net profit totaled 603.8 billion won, down 2.09% from a year earlier. Net interest income rose 2.3% to 2.3032 trillion won, supported by growth in corporate finance and a steady net interest margin. The bank’s NIM increased to 1.51% in the first quarter from 1.49% in the fourth quarter of last year, up 0.02 percentage points. Noninterest income climbed 26.7% to 454.6 billion won as the contribution from nonbank units such as securities and insurance expanded. Fee income hit a quarterly record of 576.8 billion won. Woori Financial said profit was pressured as gains related to securities and foreign exchange fell in the wake of the Middle East war, and as one-off provisions tied to overseas units were reflected in results. A Woori Financial official said securities- and FX-related gains declined and the group set aside provisions of about 100 billion won for Indonesia’s Bank Woori Saudara, adding that the factors were temporary and driven by external conditions. The official said the company expects a recovery as recent market indicators stabilize. The group’s ratio of substandard or lower loans rose to 0.68% at the end of the first quarter from 0.63% at the end of last year. The bank’s delinquency rate was 0.38% and the card delinquency rate was 1.80%, up 0.04 percentage points and 0.27 percentage points, respectively. Woori Financial’s common equity Tier 1 ratio stood at a record 13.6% at the end of the first quarter, up 0.7 percentage points from the end of last year. Affiliate Woori Card posted first-quarter net profit of 43.9 billion won, up 33.8% from a year earlier. Woori Financial Capital earned 40.0 billion won, up 30.7%. Tongyang Life Insurance, acquired last year, reported net profit of 25.0 billion won. Woori Investment & Securities said net profit surged 976.9% on a stronger stock market. A Woori Financial official said efforts to strengthen capital adequacy and diversify earnings are translating into market confidence, adding that the group plans to expand shareholder returns as profit contributions from nonbank units gain momentum. Separately, Woori Financial’s board on April 24 approved a first-quarter dividend of 220 won per share, up 10% from a year earlier. The dividend will be paid tax-free. 2026-04-24 16:17:24
  • NH NongHyup Financial Q1 Net Profit Rises 21.7% to 868.8 Billion Won on Strong Fee Income
    NH NongHyup Financial Q1 Net Profit Rises 21.7% to 868.8 Billion Won on Strong Fee Income NH NongHyup Financial Group said Thursday it posted first-quarter net profit of 868.8 billion won, up 21.7% from a year earlier.  The group attributed the gain to balanced growth in both interest and noninterest income.  Interest income rose 7.3% to 2.1143 trillion won, helped by a larger core deposit base and a corporate-loan-focused portfolio that improved net interest margin. The combined bank and card NIM increased to 1.75% in March from 1.67% in December.  Noninterest income climbed 51.3% to 903.6 billion won. The group cited higher brokerage revenue amid more active capital markets and a sharp rise in fee income as assets under management expanded.  Return on assets and return on equity improved from the end of last year to 0.78% and 11.85%, respectively. The ratio of substandard or lower loans was 0.65%, and the loan-loss reserve coverage ratio stood at 156.54%. By major unit, NongHyup Bank earned 557.7 billion won, NH Investment & Securities posted 475.7 billion won, and NongHyup Life and Non-Life Insurance reported 67.1 billion won. NongHyup Bank’s profit rose slightly from a year earlier, up 3.3 billion won. Among capital-market affiliates, NH Investment & Securities and NH-Amundi Asset Management posted year-on-year profit increases of 128.5% and 117.5%, respectively, helping lift group results. 2026-04-24 15:10:48
  • Hana Financial posts record Q1 net profit of 1.21 trillion won on stronger fee income
    Hana Financial posts record Q1 net profit of 1.21 trillion won on stronger fee income Hana Financial Group said it posted its highest-ever first-quarter net profit despite external headwinds such as exchange-rate volatility. The company said April 24 that first-quarter net profit totaled 1.21 trillion won, up 7.3% from a year earlier. Hana Financial said the results were notable because they came after absorbing one-off costs, including 82.3 billion won in foreign-exchange translation losses tied to a weaker won. Net interest income rose 10.2% from a year earlier to 2.5053 trillion won. The group’s net interest margin was 1.82%, up 0.13 percentage points from the first quarter of last year, helping lift interest income. Noninterest income fell 11.9% to 583.6 billion won. Within that, fee income climbed 28% from a year earlier, which the group attributed to higher asset-management fees amid a strong stock market and improved competitiveness at its nonbank units. Asset quality indicators weakened slightly. The group’s estimated common equity Tier 1 ratio at the end of the first quarter was 13.09%, down 0.15 percentage points from a year earlier. Return on equity rose 0.29 percentage points to 10.91%, and return on assets was 0.73%. By affiliate, Hana Bank posted first-quarter net profit of 1.1042 trillion won, up 11.2% from a year earlier. Its net interest income increased 12.8% to 2.1843 trillion won, while fee income rose 19.1% to 297.3 billion won. The bank’s net interest margin was 1.58%, up 0.06 percentage points from the fourth quarter of last year (1.52%). Among nonbank affiliates, Hana Securities posted first-quarter net profit of 103.3 billion won, up 37.1% from a year earlier, driven by growth in wealth management and investment banking. Other first-quarter net profits were 57.5 billion won at Hana Card, 53.5 billion won at Hana Capital, 7.9 billion won at Hana Life, and 6.7 billion won at Hana Asset Trust. Hana Financial’s board also approved a quarterly cash dividend of 1,145 won per share for the first quarter, up 11.6% from last year’s average dividend per share. It also approved a 200 billion won share buyback and cancellation as part of a previously announced 400 billion won program. 2026-04-24 14:57:16
  • Samsung Card Q1 Net Profit Falls 15.3% to 156.3 Billion Won
    Samsung Card Q1 Net Profit Falls 15.3% to 156.3 Billion Won Samsung Card said Friday its first-quarter results fell from a year earlier as credit-loss provisions and selling and administrative expenses increased.  The company reported net profit of 156.3 billion won for the January-March period, down 15.3% from a year earlier.  Revenue rose as spending and card receivables increased across all business segments, but financing costs, credit-loss expenses and selling and administrative costs also climbed. Total transaction volume in the quarter rose 9.3% from a year earlier to 47.3345 trillion won. Card transaction volume increased 9.4% to 47.1438 trillion won. By segment, credit purchases totaled 42.4597 trillion won and financial services 4.6841 trillion won. Installment and lease transaction volume was 190.7 billion won. The company said expanded partnerships with top-tier affiliates strengthened product competitiveness, lifting membership and spending per customer. The delinquency rate for payments overdue by more than one month was 0.92%, slightly improved from the end of last year and remained stable. A Samsung Card official said volatility in the operating environment is expected to persist after the second quarter, including continued swings in funding markets. The official said the company will respond proactively to rising internal and external uncertainties while working to maintain its competitive edge and continue investing in future growth areas such as platforms, data and artificial intelligence. 2026-04-24 14:39:15
  • Financial Services Commission chief says IBK wins Vietnam banking license after 9 years
    Financial Services Commission chief says IBK wins Vietnam banking license after 9 years Financial Services Commission Chairman Lee Eok-won, who accompanied President Lee Jae-myung on a state visit to Vietnam, said IBK Industrial Bank of Korea’s Vietnam unit has obtained a full local banking license after nine years. In a post on X on the 23rd, Lee said the president’s Vietnam trip “expanded the territory of K-finance,” and outlined financial outcomes reached in Vietnam. He highlighted IBK’s license as the most notable result, saying Vietnam’s central bank had not issued a new license to any bank, domestic or foreign, in nine years. Lee also noted that in January, the Hanoi branch of Korea Development Bank received local approval for the first time in seven years. He said three South Korean banks now operate in Vietnam, making South Korea tied with Malaysia for the most bank establishments in the country. Lee said cooperation on payment infrastructure is also accelerating, citing a “QR payment linkage agreement” between the Korea Financial Telecommunications & Clearings Institute and Vietnam’s NAPAS. He said Vietnam is the second most-visited travel destination for South Koreans and that, as in the earlier case of India, the linkage adds fee savings of about 2 percentage points per transaction, calling it a practical benefit that makes travel “lighter and more convenient.” He said the Korea-Vietnam Financial Cooperation Forum also shared examples of cooperation across insurance, capital markets, nonperforming loans and QR payments. Lee said he would work to further broaden bilateral financial cooperation, adding that the commission would serve as a “running mate” as K-finance expands globally.* This article has been translated by AI. 2026-04-24 13:57:27
  • KB Kookmin Bank Revamps Mobile Retirement Pension Trading Service
    KB Kookmin Bank Revamps Mobile Retirement Pension Trading Service KB Kookmin Bank said on the 24th it has revamped its non-face-to-face retirement pension product trading service within KB Star Banking. The update focuses on a customer-centered design, allowing users to view their holdings at a glance from the retirement pension home screen in the app. Through a link with KG Zeroin, a fund evaluation and consulting firm, the bank also added real-time ETF quote lookups to support investment decisions based on market information. The step-by-step transaction guide was improved as well, showing each stage of the buy-and-sell process so customers can track progress. The bank said it plans a second update in the first half of the year to strengthen personalized asset management features. A bank official said the overhaul will make it easier and more intuitive for customers to manage pension assets, adding that the bank will continue expanding convenient and reliable services as a trusted partner in asset management.* This article has been translated by AI. 2026-04-24 10:52:51
  • IBK Industrial Bank, Korea Credit Guarantee Fund to Provide 500 Billion Won for Startup Financing
    IBK Industrial Bank, Korea Credit Guarantee Fund to Provide 500 Billion Won for Startup Financing IBK Industrial Bank of Korea said Thursday it signed a business agreement with the Korea Credit Guarantee Fund to provide 500 billion won in financial support aimed at helping innovative startups grow and expanding productive finance. The program targets early-stage startups that have strong technology but struggle to raise funds. Under the agreement, IBK said companies that receive KODIT guarantee certificates will be eligible for benefits including interest-rate cuts of up to 1.5 percentage points and a 0.5-point discount on guarantee fees. An IBK official said the support was designed for innovative companies facing financing difficulties despite solid technology, adding the bank will continue to back small and midsize companies through each stage of growth and work to invigorate the startup ecosystem.* This article has been translated by AI. 2026-04-24 10:52:08
  • NH NongHyup Bank, Vietnam’s Agribank sign MOU on digital agricultural finance
    NH NongHyup Bank, Vietnam’s Agribank sign MOU on digital agricultural finance NH NongHyup Bank said Thursday it signed a memorandum of understanding with Vietnam’s Agribank in Hanoi on a “strategic partnership for digital agricultural finance.” Agribank is Vietnam’s top agricultural commercial bank. NH NongHyup Bank said the agreement deepens existing cooperation in areas including digital finance and investment. The MOU calls for cooperation on building an integrated farming and finance platform, launching a card-based overseas remittance service, developing card products tied to K-content, and working together on Agribank’s privatization. NH NongHyup Bank said it will support Agribank’s agricultural finance platform using its experience with the NH All One Bank platform. It also cited NH Oneul Nongsa, an agriculture-focused platform launched by the National Agricultural Cooperative Federation in 2021, which offers rural labor matching, real-time local food sales and settlement inquiries, and real-time wholesale crop price checks. The two banks, which the lender described as leading agricultural finance institutions in South Korea and Vietnam, have expanded cooperation in areas such as staff exchanges since signing their first MOU in 2013. “This has strong symbolic meaning as cooperation between the leading agricultural finance institutions representing our two countries,” Kang said. “We will expand overseas the agricultural and digital finance achievements built in Korea and, through cooperation with Agribank, strengthen our global competitiveness by contributing to the development of agriculture and rural communities.”* This article has been translated by AI. 2026-04-24 10:51:19
  • NH NongHyup Financial Targets Seniors With 21 New Products and 100 Service Hubs
    NH NongHyup Financial Targets Seniors With 21 New Products and 100 Service Hubs NH NongHyup Financial Group is stepping up a companywide push to win senior customers, who account for more than half of its client base. The group plans to roll out 21 senior-focused products in stages and build about 100 regional senior hubs by using what it calls the country’s largest offline branch network. As major banks shrink their branch footprints, NongHyup Financial aims to use its nationwide network—reaching from city centers to remote mountain areas—to better serve seniors in underserved financial areas. According to the financial industry on the 23rd, NongHyup Financial plans to sequentially launch 21 senior-only products this year built around three themes: “health,” “assets” and “daily life.” The expansion builds on “NH All One Wonderful,” a senior-focused brand introduced in November. The group said it is tailoring solutions to issues it sees among customers preparing for a second chapter of life, including money, health and loneliness. In the second quarter, it plans to release three protection-type products, including the nonlife “Proper Treatment and 365 Caregiver Insurance” and the life “Long-Term Care Peace-of-Mind Caregiver Insurance.” NH NongHyup Bank plans to introduce “Youth Loan,” while NongHyup Capital will offer a “Senior Small Loan.” The group said it is also developing products and services to support stable cash flow after retirement. It is reviewing a reverse mortgage product and plans to add a senior re-employment linkage service to the “NH All One Bank” app. The strategy reflects the group’s customer mix. NongHyup Financial has about 12 million senior customers, more than 55% of its total. It believes its nationwide network—spanning financial affiliates as well as nonfinancial units such as supermarkets, gas stations and parcel delivery—can broaden access for seniors in smaller cities and rural and fishing communities. Local NongHyup cooperatives operate 4,894 main and branch offices, more than KB Kookmin Bank (771), Shinhan Bank (650), Hana Bank (608) and Woori Bank (656). The group views its branch count as a competitive advantage for attracting seniors and improving satisfaction, and said it could also support the government’s push for balanced regional development. NongHyup Financial is also overhauling its sales channels. In June, NH NongHyup Bank plans to set up “NH All One Wonderful Retirement Planning Consultation Desks” at 100 wealth management-focused branches nationwide. The bank plans to create senior-friendly spaces by region that combine financial counseling with links to farm experiences and cultural classes. A premium consultation area for high-net-worth senior clients will also be created inside the bank’s Royal Chamber. Nonbank affiliates are moving to expand in-person touchpoints as well. NongHyup Life Insurance and NongHyup Savings Bank plan to introduce senior-only counters in the second and third quarters, respectively, to improve offline access. A NongHyup Financial official said the group is pursuing 22 strategic tasks under seven pillars for its senior business strategy—covering customers, products and services, channels, organization, innovation, partnerships and brand. “We will go beyond simply selling financial products and present a new service model that combines finance and care,” the official said. 2026-04-23 10:16:15
  • Korean Banks Expand Corporate Lending Despite Rising Delinquencies Under ‘Productive Finance’ Push
    Korean Banks Expand Corporate Lending Despite Rising Delinquencies Under ‘Productive Finance’ Push Korean banks are accelerating corporate lending despite the risk of rising delinquency rates, stepping up funding after the government’s push for so-called productive finance. Banks have even overhauled key performance indicators, or KPIs, to drive lending. Critics warn that aggressive expansion, combined with weak regional economies, could undermine asset quality in coming years. As of the end of last month, corporate loans at the five major commercial banks — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — totaled 859.7737 trillion won, up 15.0483 trillion won from the end of last year, according to the financial sector on Saturday. Loans to large companies rose 8.7127 trillion won to 179.0119 trillion won over the same period. Lending to small and midsize companies increased 6.3356 trillion won to 680.7618 trillion won. Behind the faster pace of lending is the government’s productive-finance agenda. Financial authorities have laid out a plan to invest a combined 1,240 trillion won in productive finance over the next five years, including private and policy financing. The banking sector is expected to provide 614 trillion won, with the remainder backed by policy finance. The Financial Services Commission has also specified that, of this year’s total 240 trillion won in corporate financing, 106 trillion won should be concentrated outside the Seoul metropolitan area. Meeting those volume targets is pushing banks toward more aggressive lending from this year. Banks have responded by launching new products and rewriting KPIs. KB Kookmin Bank reclassified about 1,000 industries as “productive finance” sectors and lowered lending hurdles for companies with weaker collateral. Shinhan Bank newly assigned 25 points to productive-finance items. Hana Bank said it will apply a 1.2-times weighting to lending performance in core advanced industries, meaning a 1 billion won loan would be counted as 1.2 billion won in performance terms. Industrial Bank of Korea, a state-run lender, also added 10 productive-finance products to its KPIs, including loans to foster advanced-technology companies, a special support program for regional advanced-innovation industries, IBK Hope DREAM loans for small merchants, IBK Value Growth loans for small merchants, loans to support companies hit by tariff damage, and loans to support industrial safety activation. As banks raced to expand supply, the four major commercial banks — KB, Shinhan, Woori and Hana — posted 31.7 trillion won in productive-finance lending in the first quarter. That equals 47.2% of their annual target, reaching nearly half the goal in three months. Concerns are also growing. With the economic slowdown dragging on and more so-called zombie companies emerging, some warn that added financial support for sectors such as construction, petrochemicals and steel — amid Middle East-related risks — could later return as a wave of bad loans. The financial sector typically recalculates corporate credit ratings each April and May based on companies’ 2025 financial statements, and expects more downgrades in areas such as petrochemicals. A downgrade can trigger demands for repayment or higher interest rates. But banks, under the productive-finance drive, may face pressure to offer support such as rate cuts or maturity extensions even to firms whose ratings have fallen. “Even before productive finance gets going, companies look like they’re dying because of Middle East-related risks,” a financial industry official said. “Concentrating funding on large companies and having them distribute work to their subcontractors is a way to minimize bad loans.”* This article has been translated by AI. 2026-04-19 17:06:00