Financial groups flag risks from gov't-led 'inclusive finance' in US filings

Korea's major financial groups have pointed to the government's push for "inclusive finance" as a potential management risk in their U.S. regulatory filings, according to industry officials Thursday. The remarks, which were not included in domestic regulatory disclosures, appeared to reflect concerns within the industry over policy-driven lending initiatives and their potential impact on profitability and asset quality. According to industry officials, KB Financial Group, Shinhan Financial Group and Woori Financial Group recently submitted annual reports for fiscal year 2025 to the U.S. Securities and Exchange Commission (SEC), as their American depositary receipts (ADRs) are listed on the New York Stock Exchange. Hana Financial Group was excluded, as it does not have ADRs listed in the United States. In the filings, the three financial groups cited government-led inclusive finance initiatives under the "risk factors" section, warning that such measures could increase credit risks, pressure margins and weaken asset quality. "The Korean government may in the future request financial insti

Original source: Korea Times