Korea Capital, 2Q Net Profit Up 65% YoY

[Asia Economy Reporter Hyungsoo Park] Korea Capital, a specialized financial company, maintained a stable growth trend despite the base interest rate hike.

Korea Capital announced on the 12th that its cumulative operating profit for the first half of this year reached 54.6 billion KRW, a 67.7% increase compared to the same period last year. Net profit rose by 80.1% to 41.5 billion KRW.

In the second quarter alone, operating profit was 25.2 billion KRW and net profit was 19.0 billion KRW, increasing by 52.6% and 64.7% respectively compared to the same period last year. Total assets amounted to 3.5665 trillion KRW, up 17.3% year-on-year.

Profits increased despite the challenging domestic and international environment, including the base interest rate hike and strengthened regulations. The leverage ratio, a financial stability indicator, was lowered to 8.2 times from 8.5 times in the first quarter. This is close to the 8 times target set by authorities to be achieved by 2025.

A company official stated, "Despite increased risks of defaults due to ongoing financial market instability, the delinquency rate over one month remains low at 1.18%. This demonstrates the safety measures secured through collateral and proven excellent credit screening capabilities."

He added, "While steady performance continues in key business portfolios such as corporate finance, retail finance, and lease installment finance, we are further diversifying our asset management scope by expanding auto finance and new technology finance."