Antitrust fines to hit brokerage, bank earnings but leave capital buffers intact: KIS report
Korea’s largest-ever antitrust fine will cut into this year’s earnings at the brokerages and banks that underwrite government debt, but it is unlikely to weaken their capital buffers, according to Korea Investors Service (KIS), a Moody’s affiliate. In a report released earlier this week, the credit rating agency said the penalties imposed by the Korea Fair Trade Commission (FTC) will make “a…
Korea's largest antitrust fine in history will impact earnings for the country's leading brokerages and banks, according to a report by Korea Investors Service (KIS), a Moody's affiliate. The Korea Fair Trade Commission (FTC) imposed a combined fine of roughly 1.6 trillion won ($1.2 billion) on 15 financial institutions, all designated primary dealers responsible for underwriting Korean government bonds, for restricting competition.
While the penalties are expected to cause a short-term decline in profitability, particularly for those facing the largest fines, KIS believes their capital strength and earnings from the first half of the year should be sufficient to absorb the cost. This regulatory action, stemming from an investigation into primary dealers in Korea's sovereign debt market, creates a significant yet manageable financial hurdle for the nation's primary financial institutions.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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