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Savings banks swing to black in 2025 as delinquency rate falls

Published: 20 Mar. 2026, 09:27

A pedestrian walks by a savings bank in Seoul on Nov. 3, 2024. [YONHAP]

The savings banking industry returned to the black last year from a year earlier, aided by a decline in loan-loss reserves, data showed Friday.

The combined net profit of 79 savings banks nationwide reached 417 billion won ($278 million) last year, shifting from a loss of 423 billion won a year earlier, according to their trade association.

The data showed that their loan-loss reserves declined by 455 billion won last year compared with a year earlier.

Their asset soundness improved, with the delinquency rate coming in at 6.04 percent at the end of December, down from 8.52 percent a year earlier.

The rate on corporate loans fell 4.81 percentage points on year to 8 percent, while that on household loans gained 0.14 percentage point to 4.67 percent over the cited period.

Their average capital adequacy ratio stood at 15.85 percent at the end of December, the data showed.

Their total assets stood at 118 trillion won last year, down 2.9 trillion won from a year earlier.

In 2024, they suffered a net loss for the second consecutive year by racking up a combined net loss of 397 billion won following a loss of 576 billion won the previous year.

Savings banks suffered net losses, primarily due to risky short-term real estate project financing loans.

Yonhap