Samsung Financial Affiliates Achieve Record ₩100 Trillion Capital Amid Robust South Korean Financial Sector Growth
Samsung’s financial affiliates have reached an unprecedented milestone, surpassing 100 trillion won (approximately $65 billion) in capital for the first time by the close of 2025. This significant achievement largely fueled the overall capital expansion among South Korea’s leading financial groups, driven by a buoyant stock market rally that boosted investment gains across the sector.
New data released on Wednesday by the Financial Supervisory Service (FSS) revealed that Samsung’s consolidated capital surged to 100.5 trillion won, a substantial increase from 69.5 trillion won recorded a year prior. Concurrently, the group’s capital adequacy ratio saw an improvement, rising to 191.2 percent from 185.1 percent.
This impressive 31 trillion won capital increase by Samsung accounted for roughly three-quarters of the total combined capital growth observed across seven major financial conglomerates under the FSS’s purview: Samsung, Hyundai Motor, Mirae Asset, Hanwha, Kyobo, DB, and Kiwoom.
The FSS attributed Samsung’s remarkable capital growth primarily to higher unrealized gains from its stock holdings and an increased issuance of subordinated debt by its insurance affiliates, underscoring strategic financial management and favorable market conditions.
Collectively, the seven major financial groups experienced a robust 24.2 percent year-on-year increase in combined capital, reaching 212.5 trillion won. During the same period, required capital grew by 21.9 percent, totaling 119.6 trillion won, reflecting the overall expansion and regulatory obligations within the South Korean financial landscape.
Consequently, the average capital adequacy ratio for these groups saw a positive climb, reaching 177.6 percent at the end of 2025, up from 174.3 percent a year earlier. Encouragingly, all seven financial groups maintained a comfortable buffer above the regulatory minimum of 100 percent, signaling strong financial health.
Among the groups, DB recorded the highest capital adequacy ratio at 207.9 percent, followed by Kyobo at 201.5 percent. Samsung secured the third spot with 191.2 percent, ahead of Kiwoom at 176.7 percent, Mirae Asset at 167.3 percent, Hanwha at 148.6 percent, and Hyundai Motor at 145.5 percent.
DB demonstrated the most significant improvement in its financial standing, with its capital adequacy ratio increasing by 12.9 percentage points over the year.
Mirae Asset also strengthened its capital position, as its capital expanded from 14.3 trillion won to 16.5 trillion won, and its capital adequacy ratio improved to 167.3 percent from 164.2 percent.
Conversely, Kiwoom experienced the steepest decline, with its ratio falling by 17.1 percentage points. This was primarily due to rising stock valuations, which increased its equity-related risk exposure, leading to higher capital requirements.
Hanwha’s capital ratio also decreased by 6.3 percentage points, attributed to heightened insurance risk requirements at Hanwha Life Insurance. Hyundai Motor’s ratio saw a modest dip of 1.4 percentage points, as the rapid asset growth in Hyundai Capital’s U.S. business placed pressure on its capital calculations.
The FSS noted that the impact of Hyundai Capital’s overseas expansion might continue in the short term. However, the regulator anticipates that stronger earnings generated from this business growth will ultimately contribute to supporting and stabilizing capital levels over time.
The combined assets of these seven major South Korean financial groups grew substantially from 1,328.7 trillion won to 1,518.7 trillion won over the year. Simultaneously, their aggregate net profit rose from 13 trillion won to 15.1 trillion won, underscoring a period of robust growth and profitability.
The financial regulator affirmed its commitment to continuous monitoring of capital levels, particularly in light of potential volatility in interest rates and stock markets. Furthermore, the FSS plans to strengthen its oversight of risks stemming from intragroup transactions and joint investments to ensure sustained financial stability across the sector.
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