Corporate Banking in South Korea
RAROC profiles and pricing benchmarks for 2 South Korea banks, sourced from Pillar 3 disclosures.
Last updated: March 2026 · Data source: public Pillar 3 disclosures
Banks tracked
2
Headquartered in South Korea
Total corporate EAD
EUR 483.3tn
Combined exposure
Avg cost-to-income
40.4%
Operating efficiency
Avg corporate PD
1.55%
Probability of default
Overview
OpenRAROC tracks 2 banks headquartered in South Korea with a combined corporate credit exposure of EUR 483.3tn. The average South Korea bank in our dataset has a cost-to-income ratio of 40.4% and an average corporate probability of default of 1.55%. On a representative BBB+ EUR 25M 5-year term loan, these banks generate an average RAROC of 6.84%.
Cheapest vs most expensive in South Korea
On the standard sample deal, Shinhan Financial Group is the cheapest lender in South Korea, requiring just 265bp to hit a 12% RAROC hurdle. The most expensive is KB Financial Group at 269bp — a difference of 4bp on the same deal. For a EUR 25M facility, that's EUR 10,418 per year in interest expense.
All 2 banks ranked by RAROC
RAROC computed on a representative BBB+ rated, 5-year, EUR 25M term loan at 150bp spread. Click any bank for its full profile.
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FAQ: corporate banking in South Korea
How many banks in South Korea does OpenRAROC cover?
OpenRAROC tracks 2 banks headquartered in South Korea, with a combined corporate credit exposure of EUR 483.3tn reported in their most recent Pillar 3 CR6 disclosures.
Which South Korea bank has the tightest corporate credit pricing?
On a representative BBB+ EUR 25M 5-year term loan, Shinhan Financial Group requires the lowest minimum spread to clear a 12% RAROC hurdle (265bp), making it the cheapest lender in the South Korea cohort on that specific deal.
What is the average cost-to-income ratio of South Korea banks?
The 2 South Korea banks in the dataset report an average cost-to-income ratio of 40.4% and an EAD-weighted average corporate probability of default of 1.55%.
How is RAROC calculated for South Korea banks?
Each bank is priced on the same BBB+ EUR 25M 5-year term loan, using its own disclosed cost-to-income, effective tax rate, funding spread, and IRB-approach PD/LGD parameters. See the methodology page for the full formula.