SEOUL - South Korea's financial conglomerates have seen an improvement in their capital adequacy ratios in the first half of this year. This enhancement is attributed to a new accounting rule that has bolstered the capital structure of their insurance units, according to recent data.
According to Yonhap News Agency, The Financial Supervisory Service (FSS) released data indicating that the average capital adequacy ratio for seven major financial conglomerates — Samsung, Hanwha, Mirae Asset, Kyobo, Hyundai Motor, DB, and DaouKiwoom — was at 196.6 percent as of June. This figure marks an increase from 187.6 percent six months earlier. The data considers risk-weighted assets in calculating the capital adequacy ratio.
Additionally, the FSS noted that when these risk-weighted assets were not included in the calculation, the capital adequacy ratio stood at 190.7 percent in June. This data highlights the strengthening of financial stability among South Korea's major financial groups, a positive sign for the sector's resilience and capability to manage financial risks.