South Korea's regional banks are centred on SME lending and an increasing portion of lower-risk mortgage lending. LTVs are around 50% and the authorities have fortified prudential measures regarding consumer exposures.
Shipbuilding seems to be turning a corner and global growth is picking up, supporting Korea's GDP expansion of around 3% for this year and next.
JB Financial Group is a key player with a majority control in listed Kwangju Bank as well as Jeonbuk bank. JB is also listed. There will be some speculation as to JB's plans for Kwangju and Jeonbuk (unlisted).
Metrics are steadily improving across South Korean banks. Cheap valuations add to their allure, raising this jurisdiction to the top of our The PH Score™ value-quality model.