Seoul: Foreign bank branches in South Korea experienced a significant rise in their net profit last year. This increase was primarily driven by substantial gains from foreign currency and derivatives trading, which more than compensated for a decline in their interest income, as per data released on Thursday.
According to Yonhap News Agency, the collective net profit of 32 foreign banks operating in South Korea reached 1.78 trillion won (US$1.21 billion) in 2024. This marks a rise of 224 billion won, or 14.4 percent, from 1.56 trillion won recorded the previous year, based on the data from the Financial Supervisory Service (FSS).
The growth in net profit occurred despite a notable decrease in interest income. The local branches of these foreign banks achieved a profit of 2.23 trillion won from foreign exchange and derivatives trading, which more than doubled from the prior year's profit of 1.02 trillion won. In contrast, their interest income saw a decline of 22.2 percent, falling to 959 billion won from 1.23 trillion won during the same period.