South Korea's Top 4 Financial Groups Eye Record Profit in First Half

South Korea's four largest financial holding companies – KB, Shinhan, Hana, and Woori – are poised to achieve a record-breaking performance in the first half of 2026, with their combined net profit expected to exceed 11 trillion won (approximately $7.9 billion USD). This forecast, based on the consensus of 18 domestic securities firms, marks the highest interim profit in the history of the nation's financial sector.

The projected 11.0253 trillion won in net profit for the first half of the year signifies a substantial 6.8% increase, or 699.4 billion won, compared to the 10.3259 trillion won earned in the first half of 2025. Financial industry analysts attribute this robust growth to simultaneous improvements in both interest income and non-interest income streams.

The Bank of Korea's stance on raising base interest rates, coupled with rising market interest rates, is expected to boost the interest income generated by the banking divisions of these major financial groups. Furthermore, a booming stock market has contributed to improved performance in subsidiaries involved in securities, asset management, and other financial services. KB Financial, Shinhan Financial, and Hana Financial are each anticipated to see their first-half net profits increase by approximately 6% year-on-year.

However, Woori Financial's net profit outlook for the first half shows a more modest growth of 0.4% compared to the previous year. This is attributed to a slightly slower increase in the performance of its subsidiaries, including securities and insurance arms, despite stable interest income growth. Looking ahead to the second half of the year (July-December), projections suggest a downturn in profits for the major financial groups, with an estimated combined net profit of around 8.8 trillion won. This anticipated decline is largely due to seasonal factors, such as the significant costs associated with voluntary retirement programs, which are typically reflected in the fourth quarter.