Corporate Banking in South Korea

RAROC profiles and pricing benchmarks for 2 South Korea banks, sourced from Pillar 3 disclosures.

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.

#	Bank	C/I	Avg PD	LGD	EAD	RAROC	Min spread
1	Shinhan Financial Group	41.5%	1.60%	38.0%	EUR 230.0tn	6.89%	265bp
2	KB Financial Group	39.3%	1.50%	38.0%	EUR 253.3tn	6.79%	269bp

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