Korea Capital Reports 23.1 Billion KRW Net Profit in H1, Up 51% YoY

[Asia Economy Reporter Hyunseok Yoo] Korea Capital announced on the 13th that its operating profit for the first half of this year grew 68.9% year-on-year to 32.6 billion KRW. Net profit increased by 51.0% to 23.1 billion KRW.

The asset size also steadily grew, surpassing 3 trillion KRW within the year. As of the end of June, total assets amounted to 3.04 trillion KRW, an increase of 609.5 billion KRW (25.1%) compared to the previous year.

Despite business expansion, asset soundness improved further. The key safety indicator, the delinquency rate over one month, recorded 1.1%, down 0.1 percentage points from the previous quarter.

A company official stated, “We are recognized for our asset management capabilities and are raising funds at lower interest rates than competitors with the same credit rating,” adding, “Due to thorough delinquency management, soundness indicators have improved, creating a virtuous cycle that enables business expansion with low funding costs.”

Meanwhile, Korea Capital decided on the 9th to issue 50 billion KRW worth of hybrid capital securities (perpetual bonds) targeted at the Military Mutual Aid Association. As of the second quarter, Korea Capital recorded a leverage ratio of 9.4 times, but plans to reduce it below the regulatory threshold of 9 times through capital expansion via the perpetual bond issuance.