Big Four Financial Groups' Annual Net Profit Expected to Surpass 20 Trillion Won for First Time

The combined annual net profit of South Korea's Big Four financial holding companies is expected to surpass 20 trillion won for the first time on record this year. With third-quarter earnings announcements underway, Hana Financial Group was the first out of the gate, posting a record cumulative net profit of 3.6 trillion won for the first nine months of the year. The strong showing was driven by fee income, which grew nearly 30% from a year earlier.

Woori Financial Group also kept up its momentum, posting net profit above the 1 trillion won mark for two consecutive quarters for the first time since its launch. Expanded corporate lending and rising earnings in its non-banking businesses underpinned the results. KB Financial and Shinhan Financial are set to report their results next week.

Despite the strong earnings, a series of hacking incidents in the financial sector has put management accountability for internal controls under scrutiny. The five major banks' information security investment last year totaled 214.4 billion won, down more than 2% from the previous year, with its share of net profit also declining. At a parliamentary audit on the 19th, Financial Supervisory Service Governor Lee Chan-jin directly referenced management accountability, saying the hacking cases would mark the first time CEO responsibility is addressed. The terms of the CEOs of the five major banks — KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup — all expire at the end of December.