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Retail Banking in South Korea - COVID-19 Impact Snapshot

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  • 18 Pages
  • July 2020
  • Region: South Korea
  • GlobalData
  • ID: 5030876
1h Free Analyst Time
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The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.

Fears surrounding the impact of COVID-19 have already significantly impacted the global economy, with most countries across the world registering declines in their economic growth for the year to date. Many economists and institutions have cut their forecasts, with many experts predicting the onset of recessionary environments.

South Korea has been able to control the COVID-19 pandemic quite well thanks to robust government measures. As of July 8 there were 13,181 confirmed cases, with the majority of individuals having already recovered. A gradual recovery in the economy and a rise in consumer spending will eventually see growth in credit going forward.

This report focuses on the impact of the Coronavirus outbreak on the economy and the retail banking industry in South Korea. Based on our proprietary datasets, the snap shot provides a detailed comparison between pre-COVID-19 forecasts and revised forecasts of total mortgage, consumer, credit card loan balances as well as deposit balances in terms of value and growth rates. It also offers information on measures taken by the government to combat Coronavirus.


  • So far the crisis has had a limited impact on the domestic economy, with control measures not as invasive and widespread as seen in other markets. Banks are observing a near-term downside to profitability. Net interest margins will remain low and could be compressed further by rate changes. Fee income will fall, driven by decreased retail spending.
  • South Korea slumped into a modest slowdown in the first quarter of 2020. The highly international and globally integrated nature of its economy and leading companies means it will not be able to avoid the global recession. Even though its government has been among the most effective at combating the virus and government measures will support the banking sector in the short term, extended disruption to economic activity would weaken banks’ asset quality and profitability.

Reasons to Buy

  • Make strategic decisions using top-level revised forecast data on the South Korean retail lending and deposit industry.
  • Understand the key market trends, challenges, and opportunities in the South Korean retail lending and deposit industry.
  • Receive a comprehensive insight into the total consumer loans in South Korea, including mortgages, personal and credit card loans as well as retail deposits balances.

Table of Contents

COVID-19 Update
  • Impact Assessment
  • Retail Deposits
  • Total Consumer Loans
  • Mortgage Loans
  • Credit Card Loans
  • Other Consumer Loans
  • Job Analysis

  • Supplementary Data
  • Definitions
  • Methodology
  • About the Publisher
  • Contact