11. 09
(Mon)
Finance list
70 articles-
Mid-credit borrowers squeezed as regional and internet banks raise loan thresholds
Average credit scores for new household loans at Korean banks rose for a sixth straight month in September, as regional and internet-only banks sharply raised thresholds and focused on prime borrowers, deepening exclusion of mid-to-low credit borrowers.
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Card loan rates fall to 13% but high-rate borrowers near 20% surge
Card loan average rates fell to 13% but the share of borrowers paying near the 20% legal maximum rose to 25.9%, as benefits concentrated on prime borrowers and card companies imposed high add-on rates on vulnerable borrowers pushed from banks.
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Bank loan rates surge despite base rate freeze, hitting vulnerable borrowers
Bank lending rates are surging despite the Bank of Korea's base rate freeze, with mortgage rates at a 14-year high and delinquency rates at a near 10-year high, hitting vulnerable borrowers hardest and raising concerns about a broader credit crisis.
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CD rates spike as banks defend liquidity, hitting marginal SMEs
Korean banks' heavy CD issuance to meet year-end liquidity rules is driving short-term rates up while long-term rates fall, squeezing SMEs with floating-rate loans and raising default risks.
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Samsung Securities ruling sets precedent for avoiding liability, exempting executives from discipline through settlements
A Seoul court canceled FSS sanctions on a former Samsung Securities executive over 23.2 billion won in fund misselling, ruling that post-hoc settlements should lower discipline. Critics warn the decision could weaken internal controls and enable executives to avoid accountability through compensatio
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72 Trillion Won in Corporate Bond Maturities in 2027: A Refinancing Time Bomb for Low-Rated Firms
Corporate bond maturities will hit 72.3 trillion won in 2027, with 48.3 trillion won due in the first half. Low-rated firms face a liquidity crisis as refinancing costs surge and credit spreads widen.
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Internet-only banks' sole proprietor loans boomerang, half of operating profit goes to provisions
KakaoBank and K bank set aside 27.5% and 57.7% of Q3 pre-provision operating profit as loan-loss provisions, far above the 12.2% average of major commercial banks, as aggressive sole proprietor lending to bypass mortgage curbs backfires.
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Credit rally rides KTB dip but stumbles on surging short-term rates
The recent narrowing of credit spreads on bank and corporate bonds is a technical illusion driven by KTB yield declines, not a fundamental improvement, and is likely to reverse as short-term rates surge and year-end book closing begins.
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Lotte Rental, heading for delisting, breaks through bond market on rental asset cash flow
Lotte Rental, heading for delisting after TPG's acquisition, drew strong demand for its corporate bonds as investors focused on its cash generation. The company plans to use the proceeds to refinance short-term debt, but high dividends after full subsidiary conversion remain a mid-to-long term risk.
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Internet banks outprice commercial lenders for top-tier credit lines
Internet-only banks are charging top-tier credit borrowers higher rates than commercial banks on credit-line loans, shifting mid-to-low credit lending costs onto prime customers and risking customer flight.
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KakaoBank's record profit driven by small business loans, but credit costs loom
KakaoBank posted record cumulative profit through the third quarter on strong small business lending, but a 30% jump in credit loss provisions signals rising asset quality risks as it expands into corporate and non-bank loans.
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KB Financial issues 4.8% perpetuals to repay 3% bonds
KB Financial Group is issuing 270 billion won in hybrid capital securities at 4.82% to repay lower-rate senior bonds, aiming to bolster capital ratios despite higher interest costs. The move highlights growing reliance on perpetual bonds amid tightening capital regulations.
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Big 4 financial groups' NPLs top 14 trillion won amid corporate loan pressure
Korea's four largest financial groups saw NPLs top 14 trillion won in Q3, with coverage ratios falling sharply. Government SME lending pressure is inflating risk-weighted assets, threatening their 13% CET1 ratio and shareholder return pledges.
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Card payments surge 2.4-fold just before debt relief, warning of inclusive finance distress
Korea's inclusive finance and debt restructuring programs face surging delinquency and abuse, with card spending spiking 2.4-fold just before debt relief applications and asset concealment cases emerging, raising concerns over moral hazard and fund depletion as authorities plan to ease loan requirem
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FSS Sets 15% Floor on Credit Risk to Block Insurers' Liability Discounting Trick
The FSS will require insurers to use at least 15% of the 10-year long-term average spread as the credit risk spread from next year, blocking a loophole that inflated liquidity premiums and understated liabilities. The change is expected to pressure capital ratios, especially at small and midsize ins
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Small loan delinquency tops 44%... Eased terms a band-aid that can't stop bad debt
The delinquency rate on Korea's last-resort small loans for low-income borrowers has surged past 44%, with over half of borrowers under 30 failing to repay. Despite this, authorities plan to expand the program to 600 billion won next year with lower rates and longer maturities, drawing criticism tha
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Trillions pour into brokerage bonds, Hanwha Life barely fills book: capital quality divides
Hanwha Life's 400 billion won subordinated bond sale barely cleared book-building at a 5.30% yield, while Korea Investment & Securities drew 1.815 trillion won for its 300 billion won senior bond offering, highlighting market scrutiny of capital quality.
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NPLs at 5 major banks hit 7.6133 trillion won, shattering provision defenses
NPLs at Korea's five major banks hit 7.6133 trillion won, the highest in eight and a half years, while NPL coverage ratios plunged, raising concerns over year-end capital adequacy and provisioning.
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KakaoBank business loans 60% mid-to-low credit borrowers; collateral key to containing bad debt
KakaoBank's individual business loan balance surpassed 4 trillion won, with 60% of customers being mid-to-low credit borrowers. About 70% of the portfolio is backed by guarantees and property collateral, shielding asset soundness amid rising SME delinquency rates.
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MG credit unions see corporate delinquency top 10%, lean more on public guarantees
MG Community Credit Cooperatives are increasingly relying on public credit guarantees to defend against soaring corporate loan delinquency rates, but the shift risks shifting losses to regional guarantee foundations.