This year, the capital adequacy ratio of financial conglomerates increased by 8.4 percentage points compared to the end of last year. This rise is attributed to increased stock valuation gains and retained earnings from financial investment affiliates.
According to the Financial Supervisory Service on November 12, the capital adequacy ratio for seven financial conglomerates, excluding Toss, was recorded at 186.0% as of June 30, up from 177.6% at the end of last year.
The capital adequacy ratio is calculated by dividing the consolidated equity of financial conglomerates by the required consolidated capital. A higher ratio indicates a greater capacity to absorb losses in response to shocks in the financial market.
As of June 30, the consolidated equity stood at 306.2 trillion won, an increase of 93.7 trillion won (44.1%) from the end of last year. This growth was driven by rising stock valuation gains and increased retained earnings, particularly among financial investment affiliates.
The required consolidated capital also rose by 45 trillion won (37.7%) to 164.6 trillion won. This increase was due to heightened market risk from rising stock prices and interest rates, as well as an increase in risk assets following acquisitions by insurance affiliates.
By conglomerate, Samsung had the highest capital adequacy ratio at 202.3%, followed by DB at 195.6%, Daou Kiwoom at 184.1%, Kyobo at 180.9%, Mirae Asset at 169.8%, Hanwha at 156.3%, and Hyundai Motor at 147.4%.
Compared to the end of last year, Samsung (up 11.2 percentage points), Hanwha (up 7.7 percentage points), Daou Kiwoom (up 7.3 percentage points), Mirae Asset (up 2.5 percentage points), and Hyundai Motor (up 1.9 percentage points) all saw increases. In contrast, Kyobo fell by 20.6 percentage points and DB by 12.3 percentage points.
The Financial Supervisory Service assessed that all seven financial conglomerates exceeded the regulatory threshold of 100% for capital adequacy and maintained a healthy level of loss absorption capacity.
However, the agency plans to continuously monitor capital adequacy trends in light of increased volatility in interest rates and stock prices. It will also encourage enhanced internal controls and risk management to proactively manage group-level risks stemming from major shareholder contributions and internal transactions.
According to the Financial Supervisory Service on November 12, the capital adequacy ratio for seven financial conglomerates, excluding Toss, was recorded at 186.0% as of June 30, up from 177.6% at the end of last year.
The capital adequacy ratio is calculated by dividing the consolidated equity of financial conglomerates by the required consolidated capital. A higher ratio indicates a greater capacity to absorb losses in response to shocks in the financial market.
As of June 30, the consolidated equity stood at 306.2 trillion won, an increase of 93.7 trillion won (44.1%) from the end of last year. This growth was driven by rising stock valuation gains and increased retained earnings, particularly among financial investment affiliates.
The required consolidated capital also rose by 45 trillion won (37.7%) to 164.6 trillion won. This increase was due to heightened market risk from rising stock prices and interest rates, as well as an increase in risk assets following acquisitions by insurance affiliates.
By conglomerate, Samsung had the highest capital adequacy ratio at 202.3%, followed by DB at 195.6%, Daou Kiwoom at 184.1%, Kyobo at 180.9%, Mirae Asset at 169.8%, Hanwha at 156.3%, and Hyundai Motor at 147.4%.
Compared to the end of last year, Samsung (up 11.2 percentage points), Hanwha (up 7.7 percentage points), Daou Kiwoom (up 7.3 percentage points), Mirae Asset (up 2.5 percentage points), and Hyundai Motor (up 1.9 percentage points) all saw increases. In contrast, Kyobo fell by 20.6 percentage points and DB by 12.3 percentage points.
The Financial Supervisory Service assessed that all seven financial conglomerates exceeded the regulatory threshold of 100% for capital adequacy and maintained a healthy level of loss absorption capacity.
However, the agency plans to continuously monitor capital adequacy trends in light of increased volatility in interest rates and stock prices. It will also encourage enhanced internal controls and risk management to proactively manage group-level risks stemming from major shareholder contributions and internal transactions.
* This article has been translated by AI.
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