Foreign banks in Korea were hit by fx and derivative losses last year, which brought down profits, according to a recent government survey. The Financial Supervisory Service noted that while derivative turnover increased by more than 39% last year, overall profits for foreign banks fell by 19% year-on-year. Chang Woo Kweon, senior associate in the banking supervisory department at the FSS in Seoul, told DW that much of the losses were attributed to the appreciation in the won versus the dollar as well as mark-to-market losses in derivatives, such as for interest rate products. However, Kweon noted that banks with personal banking capabilities such as HSBC and Standard Chartered made the most money onshore while JPMorgan and UBS generated the biggest losses. A total of 38 foreign banks were surveyed, with data submitted in January. From 2002 to 2003, profit from foreign firms grew by over 40%.
Banks Take Hit In Korea: Report
