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Korean banks post record write-offs as bad bank programme begins

Kookmin and Shinhan book combined 664 billion won surge in Q4 charge-offs as New Leap Fund accelerates NPL disposals

Loan write-offs at South Korea’s two largest banks, Kookmin Bank and Shinhan Bank, climbed to record levels in the fourth quarter of 2025, as the first phase of the government-backed debt restructuring programme began in October. 

Shinhan Bank’s write-offs and loan disposals rose by 358 billion won ($248 million), or 47.6%, to a record 1.11 trillion won. Total write-offs and non-performing loan

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