Korea Banks Pledge $1.5 Billion Amid Profit-Sharing Pressure

Commercial banks in South Korea will provide at least a combined 2 trillion won ($1.5 billion) to support self-employed and mom-and-pop business owners as pressure mounts from regulators and politicians to share profits from higher interest rates.

All 18 lenders in this category, including Kookmin Bank, Woori Bank and Shinhan Bank, will participate based on each bank’s net income, according to a joint statement from the Financial Services Commission, Financial Supervisory Service and Korea Federation of Banks. Korean units of Standard Chartered Plc and Citigroup Inc. will also join the program.