Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Samsung outcompetes major financial groups in earnings
A Samsung flag hangs on the conglomerate's building in central Seoul in this undated photo. Yonhap
By Yi Whan-woo
The financial arms of Samsung Group earn more than major financial holding companies, even though the country’s top conglomerate does not own a bank, which remains the most lucrative business in the industry.
According to Samsung Financial Network, an alliance of the conglomerate’s seven financial affiliates, the larger four of the seven peers posted a net income of 3.2 trillion won ($2.39 billion) for the first half of 2024.
The four are Samsung Life Insurance, Samsung Fire & Marine Insurance, Samsung Card and Samsung Securities. The smaller three are Samsung Venture Investment, Samsung Asset Management and Samsung Futures.
Excluding the net profit of the smaller three, Samsung Financial Network still managed to outcompete all five major financial groups — KB, Shinhan, Hana, Woori and NH — in terms of earnings in the January-June period.
KB Financial Group said it posted a net income of 2.78 trillion won, which was about 500 billion won less than the earnings of Samsung Financial Network’s four aforementioned peers.
The net income of Shinhan Financial Group totaled 2.74 trillion won. Hana Financial Group reaped 2.68 trillion won, while Woori Financial Group earned 1.755 trillion won and NH Financial Group raked in 1.753 trillion won.
The January-June performances of the five financial holding companies came as they collectively recorded an all-time high net profit of 11.1 trillion won.
Such earnings marked a 1.9 percent increase from the previous year, driven by surging net interest income from their flagship banking units.
The aggregate net interest income amounted 25.11 trillion won, surpassing the 25 trillion won mark for the first time for any first half of a year.
“It is impressive that Samsung Financial Network outcompeted the financial holding companies without owning a bank,” an industry source said.
Market observers deem that Samsung Financial Network will be able to consolidate its dominance over the financial groups.
They note that Samsung Life Insurance, Samsung Fire & Marine Insurance, Samsung Card and Samsung Securities have each been enhancing their competence over the years.
Each ranked at the top in their respective sector. Samsung Life Insurance saw a 40.5 percent year-on-year increase to log a 1.36 trillion won net profit for the first half, while Samsung Fire & Marine Insurance’s net income jumped 8.2 percent year-on-year to 1.31 trillion won.
While it is ranked second in the credit card industry, Samsung Card is narrowing the gap fast with No. 1 market player Shinhan Card.
Samsung Card logged a net profit of 362.8 billion won for the first half, up by 24.8 percent from the year earlier. The January-June earnings also boosted the company to lower the profitability gap against Shinhan Card to 16.5 billion won.
Also top ranking in the securities industry, Samsung Securities enjoyed a 26.4 percent growth year-on-year.