Record Deficits in Banking Business

The country's 22 commercial banks set record-breaking losses totaling 14.48 trillion won in 1998, an increase of 273 percent from the previous year.
Only 4 out of the 22 banks- Hana, Kookmin, Shinhan, and Hanmi- managed to make a profit.
According to the Financial Supervisory Commission on February 8, although operating profits of the 22 banks rose to 4.79 trillion won, 56.6 percent up from the previous year, the balance sheets showed the biggest deficit ever due to losses in disposing of bad loans and allowances for bad debts.
The total amount of various allowances for bad debts and early retirements made by the banks last year soared by 155 percent to reach 11.72 trillion won.
Cheil Bank, recently purchased by New Bridge Capital of the U.S., recorded the biggest loss, 2.61 trillion won, followed by Seoul and Choheung banks.