Dealers work at Hana Bank in Seoul, June 20. Korea Times photo by Shim Hyun-chul
Rena Kwok, senior credit analyst at Bloomberg Intelligence
Korea's four largest banks — KB, Shinhan, Hana and Woori — will remain resilient through the second half of 2026, navigating economic shifts and a regulatory and policy agenda. Strong risk controls and government support will prevent severe stress. Although the government's "productive-finance" push and a weak won erode capital buffers modestly, eased regulations and steady earnings will preserve sound capital.
Good underwriting mitigates severe stress
The asset quality of the four banks will be resilient through the second half of 2026 despite moderate deterioration. Risks stem from domestic and global uncertainties, government-led inclusive-finance initiatives and a "productive-finance" policy which leads to riskier corporate lending despite rising loan delinquencies.
