IBK’s Loan-Loss Cushion Thins to 100% as Bad Corporate Loans Climb | October 28 2026 | Finance Daily - 동영상 Dailymotion

Seoul Economic Daily

Korean banks’ reserves are falling behind a rising tide of bad corporate loans. Industrial Bank of Korea’s NPL coverage ratio fell to 100.04% at the end of September, down 5.98 percentage points from a year earlier, as non-performing loans rose 0.6% to 4.51 trillion won ($3.4 billion) while loan-loss reserves shrank about 5.1%. Woori Bank’s ratio dropped 54.21 points to 126.70%, Hana Bank’s fell 29.43 points to 106.52%, and Shinhan Bank’s slipped to 162.51%. Non-performing loans across the four banks rose 11.4% to 8.81 trillion won ($6.7 billion), with corporate credit driving much of the increase. Industry officials warn that rebuilding reserves would weigh directly on bank earnings.  Sources:  SME Loan Defaults Leave IBK’s Loan-Loss Coverage Barely at 100% — Seoul Economic Daily, October 28, 2026  About AI PRISM: AI PRISM is Seoul Economic Daily’s WAN-IFRA award-winning newsroom AI series, delivering Korean economic news adapted for global audiences. Episodes are produced with AI assistance and reviewed by a human editor.  Tags: #KoreanBanks #NPL #IBK #WooriBank #CreditRisk #KOSPI #AIPRISM #SeoulEconomicDaily #WANIFRA

Transcript

00:03Bad loans at Korean banks are outrunning their reserves.

00:07At IBK Industrial Bank, heavy on small business loans, the loss cushion is barely 100%.

00:13At Wuri, it has more than halved in two years.

00:17It's Wednesday, October 28th. Let's break down what's happening in Korea's financial sector.

00:23The NPL coverage ratio measures loan loss reserves against bad loans.

00:28At 100%, reserves exactly match bad loans.

00:32Rising rates and weak consumption are adding strain.

00:36Here's what the numbers show.

00:38100.04%, that's IBK's coverage ratio at end September, down 5.98 percentage points in a year.

00:47Its bad loans rose 0.6%, while reserves fell about 5.1%.

00:53Wuri's ratio fell 54.2 points in a year to 126.7%.

01:00Bad loans at IBK, HANA, Wuri, and Shinhan rose 11.4% to 8.81 trillion won, about $6.7

01:11billion.

01:13So what does this mean for bank analysts?

01:16Earlier, we said Wuri's loss cushion has more than halved in two years.

01:20Here's what that actually means for you.

01:22Thinner reserves may have flattered profits, and rebuilding them would cut straight into earnings.

01:28Watch whether IBK's ratio slips below 100%.

01:32Watch delinquency rates, now 1.04% at IBK.

01:37Watch precautionary loans, already 12.63 trillion won, about $9.5 billion.

01:45That's today's AI Prism Finance Daily.

01:48This episode was produced with AI Assistants, based on Seoul Economic Daily reporting, and reviewed by a human editor.

01:56AI Prism is a Juan Ifra Award-winning series.

01:59We'll be back tomorrow.

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IBK’s Loan-Loss Cushion Thins to 100% as Bad Corporate Loans Climb | October 28 2026 | Finance Daily

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