The four major financial groups (KB, Shinhan, Hana, and Woori) are found to be reporting corporate tax amounts this year totaling 6.2 trillion won, an increase of nearly 40% from the previous year. This figure combines both domestic and overseas payments, with an estimated minimum of approximately 5 trillion won to be paid domestically alone. While there are many criticisms that bank-affiliated financial groups focus on interest-based profits, they are also faithfully fulfilling their role of filling the national coffers through their earnings.
According to the Seoul Economic Daily's analysis of the 2025 business reports of the four major financial groups on the 12th, the corporate taxes that KB, Shinhan, Hana, and Woori Financial must pay to domestic and overseas tax authorities based on last year's performance totaled 6.1666 trillion won. This represents a 37.5% increase compared to the previous year. Generally, companies calculate the corporate tax they must report and pay this year based on the previous year's performance.
The corporate tax payments of the four major financial groups increased 18.6% from 5.3305 trillion won in 2021 to 6.3229 trillion won in 2022, then decreased to 4.5002 trillion won in 2023 and 4.5456 trillion won in 2024. However, it has now recovered to the 6 trillion won level.
Among the four major financial groups, KB Financial had the highest corporate tax amount. Corporate tax payments of 1.8967 trillion won were generated for last year's performance, a 21% increase from the previous year (1.5677 trillion won). Shinhan Financial (1.5721 trillion won) and Hana Financial (1.5021 trillion won) followed. Both companies saw their corporate tax payments increase by 29.9% and 38.4% respectively compared to the previous year.
In the case of Woori Financial, payments were relatively smaller at 1.1957 trillion won compared to other financial holding companies, but the year-over-year increase rate was the steepest at 92.7%. This is interpreted as reflecting the performance of Tongyang and ABL Life Insurance, which were incorporated as subsidiaries starting last year.
The current corporate tax payments disclosed by financial holding companies include taxes payable to overseas tax authorities. However, considering that a significant portion of financial holding companies' performance comes from Korea, approximately 5 trillion won is expected to be collected by domestic tax authorities. Given that the government's estimated corporate tax revenue for this year is 86.5 trillion won, approximately 6% of corporate tax revenue can be expected to come from the four major financial holding companies. An official from a financial holding company explained, "More than 80% of corporate tax payments are made to domestic tax authorities."
When considering education tax as well, the financial holding companies' contribution to government finances is expected to be even greater. This is because starting this year, the education tax rate levied on financial companies' profits exceeding 1 trillion won will rise from 0.5% to 1%. Additionally, as corporate tax rates will increase by 1 percentage point starting with next year's payments, the corporate taxes that domestic financial holding companies must pay are expected to increase further.
The market forecasts that the four major financial holding companies will continue to show strong performance this year, and that corporate taxes to be paid next year will also increase. According to financial information company FnGuide, the average pre-tax profit estimate for the four major financial holding companies this year projected by domestic securities firms (based on estimates from the last three months) totals 26.3857 trillion won, 7% more than the previous year.
