Korea Capital Approaches 3 Trillion Won in Operating Assets

[Asia Economy Reporter Yoo Hyun-seok] Korea Capital, a specialized financial company in credit finance, is rapidly growing by increasing its operating assets to the scale of 3 trillion KRW.

As of the 15th, Korea Capital announced that its operating assets amount to 2.9 trillion KRW. Having secured the largest scale of operating assets in its history, Korea Capital is expected to surpass 3 trillion KRW soon.

A company official stated, "The compound annual growth rate of total assets over the past five years has been about 18%, showing rapid growth," and added, "The increased safety through major shareholder credit extensions has been recognized in the capital market, allowing us to expand the scale of operating assets."

Due to the nature of capital companies without deposit-taking functions, Korea Capital raises most of the funds necessary for its business through corporate bonds. This year alone, it has raised a total of 1.24 trillion KRW through corporate bonds. Additionally, it secured funds through capital expansion such as issuing 50 billion KRW worth of perpetual bonds to the largest shareholder.

Korea Capital succeeded in increasing its asset size by diversifying its business portfolio. By reducing the overly concentrated business proportion in existing lease finance and expanding rental and corporate finance, it balanced the proportions across business sectors, which dispersed risk and improved profitability.

Meanwhile, following the trend of base interest rate hikes, Korea Capital plans to strengthen risk management further next year. It aims to maintain the historically lowest delinquency rate (over 1 month) at around 1%.

This content was produced with the assistance of AI translation services.