Korea

Woori's first-quarter earnings fell by 50.6 per cent from a year earlier on an absence of one-off gains.

KB Financial Group's first-quarter earnings rose 23.3 percent from 2010. This is due to improved interest margin and a fall in loan-loss reserves.

Industrial Bank of Korea's first-quarter earnings jumped 50.7 percent from last year. The bank ascribes the growth to increased interest income and lower loan-loss reserves.

Doubts on the merger surface as Financial Services Commission is reviewing whether Lone Star Funds is qualified to be Korea Exchange Bank's largest shareholder.

South Korea's Financial Supervisory Service is tightening supervision of credit card companies on worries that their easy loans may lead to default crises.

The South Korean financial regulator's decision over the eligibility of Lone Star Funds as the biggest shareholder of a local bank may get delayed till next month.

Major banks have been blamed for magnifying builders' problems by refusing to roll over maturing loans or forcing them to repay their loans.

South Korea plans to impose a levy on banks' foreign borrowing starting in August.

Hana Financial Group's first-quarter earnings declined 2.6 percent from a year earlier due to decreased interest income.

BS Financial Group is considering breaking into the savings bank sector in a bid to expand its business portfolio.

The lender boasts of its Easy-one Foreign Exchange Transaction Service that aims to eliminate as many banking inconveniences.

Costs incurred from massive job cuts and other factors cut down the lender’s profit to $10mn last year compared with $2.49bn in 2007.

Despite 27 branch closures in 2011, the lender still has no plans to pull out of South Korea.

The FSS advised South Korean banks to step up overseas expansion as local market is already saturated.

Woori Bank has raised US$500 million through dollar-denominated subordinated bonds.

 South Korea's Financial Supervisory Service will restrain local banks' attempts to excessively inflate assets. This is part of banks' startegy to maintain their financial health.