At the end of June 2019, domestic financial companies operated 433 overseas businesses in 43 countries. The number of overseas operations was growing particularly in ASEAN countries including Myanmar, Vietnam and Indonesia. Most of the overseas operations were concentrated in Asia, accounting for 67.2% of the total. In terms of ratio by sector, banks took the lion’s share at 44.4%, followed by financial investment companies (27.3%), insurers (17.1%) and credit specialized companies (10.6%).

The Financial Supervisory Service and Ewha Womans University are going to hold an international conference and a global job fair at the Ewha Campus Complex (ECC) on September 3, 2019.

Corporate financing through debt and equity issues in July 2019 totaled KRW17.0531 trillion, up KRW2.5546 trillion from a month earlier. Meanwhile, corporate financing through issuance of commercial paper (CP) and short-term electronic bond in July has risen by KRW20.2274 trillion to KRW137.9486 trillion.

The delinquency rate of domestic banks’ won-denominated (WD) loans—calculated as the percentage of loans with principal or interest payment past due by at least one month—as of end-June 2019 was seen at 0.41%, down 0.09%p from 0.51% a month earlier and down 0.10%p from 0.51% a year earlier. In June 2019, the amount of resolved loans exceeded that of newly delinquent loans, which led to the month-on-month decline in the delinquency rate of domestic banks’ WD loans.

Life insurance companies posted KRW2.1283 trillion in net income for the year to June 2019. The preliminary figures decreased KRW1.0204 trillion or 32.4% from the same period a year earlier.

Preliminary figures on bank loans classified as substandard or below (SBLs) for the second quarter 2019 showed that the ratio stood at 0.91%, down 0.07%p from 0.98% three months earlier and also down 0.15%p from 1.06% a year earlier.

Domestic banks preliminarily reported net income of KRW8.7 trillion for the first half of 2019, up KRW0.4 trillion from KRW8.3 trillion a year earlier. When it came to income, interest income and non-interest income increased by KRW0.9 trillion and KRW0.5 trillion, respectively. However, subsidiaries-related income was reduced KRW0.4 trillion. In case of expense, selling and administrative expenses increased KRW0.9 trillion as well as loan loss expenses were up KRW0.2 trillion during the same period. By contrast, income tax declined KRW0.5 trillion.

Foreign investors bought a net KRW2.0470 trillion of listed stocks and sold a net KRW421.0 billion of listed bonds in July, 2019. The cumulative holdings of listed stocks came to KRW543.3 trillion, 33.5% of total market capitalization. Meanwhile, the bond holdings came to KRW124.2 trillion, representing 6.9% of total listed bonds.

Corporate financing through debt and equity issues in the first half of 2019 totaled KRW88.3176 trillion, up KRW1.0463 trillion from the same period a year earlier. By contrast, corporate financing through issuance of commercial paper (CP) and short-term electronic bond in the first half of 2019 decreased KRW45.2943 trillion to KRW695.1962 trillion compared to the previous year.

The amount of asset-backed securities (ABS) issued for the first six months of 2019 came to KRW21.5 trillion in total, down KRW2.6 trillion or 10.8% from KRW24.1 trillion a year earlier. Mortgage-backed securities (MBS) issuance by the Korea Housing Finance Corporation (KHFC) came to KRW10.4 trillion (48.4% of total ABS issuance). Issuance by financial and non-financial companies totaled KRW7.2 trillion and KRW3.9 trillion, respectively, at the end of June 2019.

The delinquency rate of domestic banks’ won-denominated (WD) loans—calculated as the percentage of loans with principal or interest payment past due by at least one month—as of end-May 2019 stood at 0.51%, up 0.02%p from 0.49% a month earlier but down 0.12%p from 0.62% a year earlier. In May 2019, the amount of newly delinquent loans exceeded that of resolved loans, which contributed to the month-on-month increase in the delinquency rate of domestic banks’ WD loans.

Foreign investors bought a net KRW244.0 billion of listed stocks and a net KRW5.8010 trillion of listed bonds in June, 2019. The cumulative holdings of listed stocks came to KRW559.8 trillion, 32.7% of total market capitalization. Meanwhile, the bond holdings came to KRW124.5 trillion, representing 7.0% of total listed bonds.

At the end of 2018, domestic credit-specialized finance companies (CFC) had 41 overseas operations in 15 countries. Most of the overseas businesses were concentrated in Asia, which accounted for 80.5%, and Asian emerging markets including Myanmar took the lion’s share in 2018.

Corporate financing through debt and equity issues in May 2019 totaled KRW13.9269 trillion, down KRW5.8163 trillion from a month earlier. In addition, corporate financing through issuance of commercial paper (CP) and short-term electronic bond in May decreased KRW12.7347 trillion to KRW121.5823 trillion.

The Financial Services Commission identified on June 26, 2019, five bank holding companies (BHC) and six BHC’s subsidiary banks as domestic systemically important banks (D-SIBs) for 2020: Shinhan Financial Group, Hana Financial Group, KB Financial Group, NongHyup Financial Group, Woori Financial Group, Shinhan bank, Jeju bank, KEB Hana bank, Kookmin bank, NongHyup bank and Woori Bank. Woori Financial Group was additionally identified as D-SIBs compared to 2019.