South Korea’s top financial groups achieved record financial group profit in the first half of the year. The combined net profit reached 10.33 trillion won, or $7.2 billion. This amount beat market expectations and marked the strongest half-year performance to date. Analysts had forecast a lower figure, but strong earnings from noninterest income pushed results higher.
The groups—KB, Shinhan, Hana, and Woori—benefited from the absence of equity-linked security losses. These losses had affected performance the previous year. A rise in stock trading also helped boost fee-based income, which increased by 6.5 percent. Foreign exchange gains added support, thanks to reduced exchange rate volatility. Altogether, these factors strengthened their overall financial performance.
Record financial group profit also stemmed from growth in lending despite falling interest margins. Interest income rose by 1.5 percent, reaching 21.09 trillion won. Though central bank rate cuts narrowed margins, expanding loan volumes helped offset that impact. Loan demand remained strong across business and consumer sectors. The firms used this demand to stabilize their core income streams.
By individual performance, KB Financial Group posted the highest profit at 3.44 trillion won. Shinhan followed closely with 3.04 trillion won, and Hana earned 2.3 trillion won. Woori Financial Group reported 1.55 trillion won in profit but saw an 11.6 percent drop. This decline resulted from early retirement costs and major investments in digital technology.
Despite achieving record financial group profit, the sector now faces growing political pressure. The president called on banks to shift away from mortgage lending and focus on inclusive investment. Officials asked financial firms to support a debt relief plan targeting low-income groups and small businesses. The plan requires 400 billion won in contributions from major financial companies. This reflects the government’s new direction for financial responsibility.
The firms also announced strong shareholder return measures to boost confidence. KB will pay a dividend of 920 won per share and buy back 850 billion won in stock. Shinhan and Hana will repurchase 800 billion and 200 billion won worth of shares, respectively. Woori declared a smaller dividend of 200 won per share for the second quarter. These moves aim to balance profit distribution with future investment.
In conclusion, stock prices for the financial groups rose following these announcements. Shinhan’s shares climbed 2.74 percent, KB’s rose 1.37 percent, and Hana’s gained 1.65 percent. Investors welcomed the record financial group profit and solid returns. Nevertheless, the market responded positively to the financial outlook and dividend plans.
