Seoul: Foreign bank branches in South Korea experienced a nearly 6 percent decrease in net profit last year due to high financial costs and valuation losses from equities holdings. The financial data revealed the impact of these factors on the banks' earnings.

According to Yonhap News Agency, the combined net profit of 32 foreign banks in South Korea was 1.68 trillion won (approximately US$1.11 billion) in 2025. This figure represents a decrease of 103 billion won, or 5.8 percent, from the previous year's net income of 1.78 trillion won. The decline in profits was attributed to several factors, including a 4.7 percent decrease in interest income, which amounted to 914 billion won.

In addition, the foreign banks reported a 2 percent decline in non-interest income, totaling 2.49 trillion won. Despite these challenges, the total assets of these banks reached 450.1 trillion won by the end of December. The financial performance of these institutions highlights the pressures faced by foreign banks in South Korea amid the current economic environment.