South Korea's five major banks are turning their focus away from equity-linked securities (ELS) to bancassurance products, fueling a sharp uptick in commission income, Pulse News reported Wednesday.
The five banks -- Shinhan Financial Group's (KRX:055550) Shinhan Bank, Woori Financial Group's (KRX:316140) Woori Bank, KB Financial Group's (KRX:105560) KB Kookmin, Hana Financial Group's (KRX:086790) Hana Bank, and NH Nonghyup -- earned 293.2 billion won from bancassurance sales through May, up 61% from a year earlier, the report said.
The shift comes as regulators ease sales cap rules, allowing greater flexibility in partnerships with insurers. This is driving bancassurance to become a key non-interest income stream, especially among high-net-worth clients who seek tax-efficient savings products, it said.
Shares of Shinhan Financial Group fell nearly 1% while those of KB Financial Group declined over 1% in recent trade on Thursday.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.