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Consumer financing firms' profit jumps in 2020 on interest income

The Financial Supervisory Service headquarters in Yeouido, Seoul (Yonhap)
The Financial Supervisory Service headquarters in Yeouido, Seoul (Yonhap)
Consumer financing firms in South Korea saw their combined net profit jump 24.7 percent on-year in 2020, supported by a modest gain in interest income, data showed Tuesday.

The combined net profit of 112 credit-specialized financial firms stood at 2.56 trillion won ($2.27 billion) last year compared with a profit of 2.05 trillion won a year earlier, according to the data by the Financial Supervisory Service (FSS).

Their interest income rose 2.9 percent on-year to 5.8 trillion won last year, the data showed.

Loan-loss provisions fell 2.2 percent on-year to 1.5 trillion won in 2020, according to the data.

The combined assets of those firms climbed 12 percent on-year to 181.1 trillion won at the end of last year, the data showed.

The FSS has urged consumer financing firms to improve risk assessment processes amid financial uncertainties at home and abroad. (Yonhap)

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