Commercial banks slashed their spending on social contribution activities again this year.
The combined spending on social contributions of the four major banks ― Woori, KB Kookmin, Hana and Korea Exchange ― for this year is projected to stay at 231.7 billion won ($210.6 million), compared with 555.4 billion won three years ago.
KB Kookmin has posted a gradual decline in the figure: 131.7 billion won in 2009, 62.8 billion won in 2010, 85.8 billion won in 2011 and 85 billion won in 2012.
Woori reported a drop from 176.5 billion won in 2009 to 61 billion won in 2012. Hana and Korea Exchange banks also cut their spending on corporate responsibility activities.
Shinhan Bank is expected to follow suit as the bank has rapidly slashed the figure over the past three years.
Korean banks posted a robust combined profit last year on the back of their record-high earnings from service charges.
According to the Financial Supervisory Service, banks’ 2011 earnings came to about 12 trillion won, up 29.2 percent from 9.3 trillion won a year earlier.
Noticeably, their earnings from service fees, including those on transactions via automated teller machines, marked an all-time high of 4.9 trillion won last year, compared with 4.4 trillion won in 2010.
Their former record earnings in the service charge sector was 4.7 trillion won in 2007.
By Kim Yon-se (
kys@heraldcorp.com)
