Net profit of foreign banks in Korea dips nearly 6% in 2025

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Published: 24 Mar. 2026, 08:48 Updated: 24 Mar. 2026, 14:13

The Financial Supervisory Service building in Yeouido, western Seoul, is pictured on May 10, 2020. [YONHAP]

Foreign bank branches in Korea saw a nearly 6 percent drop in earnings last year as high financing costs, coupled with valuation losses on their equity holdings, ate into their bottom lines, data showed Tuesday.

The combined net profit of 32 foreign banks here came to 1.68 trillion won ($1.11 billion) in 2025, down 103 billion won, or 5.8 percent, from the 1.78 trillion won a year earlier, according to data from the Financial Supervisory Service (FSS).

The on-year fall came as the local branches of the foreign banks logged a 4.7 percent on-year decline in their interest income at 914 billion won last year.

They also suffered a 2 percent dip in their noninterest income at 2.49 trillion won.

Their total assets stood at 450.1 trillion won at the end of December.

Yonhap