ATM machines displaying the logos of South Korea’s four major banks.(Yonhap)
SEOUL, Dec. 7 (Korea Bizwire) — Four major financial firms will likely see their interest income decrease for the first time since 2020 this year due to tighter lending rules aimed at curbing surging housing prices, data showed Sunday.
KB Financial Group, Shinhan Financial Group, Hana Financial Group and Woori Financial Group are expected to post a combined interest income of 101.47 trillion won (US$68.8 billion) this year, down 4 percent from a year earlier, according to data compiled by market researcher FnGuide.
This will mark the first time in five years that the companies have posted on-year decreases in their interest income.
Their interest income increased for four straight years after suffering a drop in 2020 due to a sharp cut in borrowing costs sparked by the COVID-19 pandemic.
An advertisement on loans is posted outside of a bank in Seoul on Aug. 10, 2025. (Image courtesy of Yonhap)
But the companies are projected to see a downturn in interest profits in 2025 as the government has introduced stronger lending regulations, including a 600 million-won cap on mortgage loans for home purchases in the capital region, in a bid to rein in soaring housing prices.
“Interest revenue has not grown because of stricter rules on household loans, and the outlook for future interest income does not look very promising either as this approach is expected to continue into next year,” an official at one of the financial firms said on the condition of anonymity.
Meanwhile, the combined net profit of the leading financial firms is forecast to reach a record high of 18.5 trillion won this year, jumping over 10 percent from 16.5 trillion tallied in 2024.
“Significant rise in non-interest income, such as securities brokerage fees, investment banking fees and gains from marketable securities, can be attributed to the strong performance,” the official said, adding that the Bank of Korea did not cut key lending rates as much as initially expected.
In detail, KB Financial is forecast to post a net profit of 5.75 trillion won this year, up 14.4 percent on-year, with Shinhan Financial’s net profit expected to climb 15 percent to 5.25 trillion won.
Hana Financial’s net profit will likely gain 9 percent to 4.1 trillion won, and Woori Financial is expected to log 3.4 trillion won in net profit, up 8 percent.
(Yonhap)
