-- South Korean banks have strong credit profiles and generally steady near-term performance that will help them weather growing complexities in operating conditions, Fitch Ratings said in a recent release.
The country's banks face a shifting economic environment, regulatory changes, and an active government policy agenda, especially for vulnerable sectors, Fitch said.
Regulatory trends include greater requirements on household lending and policy efforts rerouting credit to the corporate sector, Fitch said.
These dynamics have catalyzed strategic alignment within the sector, leading to changes in their attitude toward growth, capital, and risk-taking, the rating agency said.
Major commercial banks that have varied business models and controlled risk management will be the most resilient, according to Fitch.