Seven local banks, including Woori Bank, the country’s No. 2 lender, invested $682.5 million in US collateralized debt obligations (CDOs) derived from subprime mortgages and lost 83% of their total CDO investments, the financial watchdog said.
Among the seven lenders, Woori Bank posted the biggest losses with $445 million, followed by the National Agricultural Cooperative Federation with $107 million, the watchdog said.
Woori Bank plans to announce its 2007 earnings on February 13.
Shinhan Bank, South Korea’s No. 3 lender, reported losses of about $1.5 million from its subprime-related investments last year.
Korea Exchange Bank, the country’s fifth-largest lender, lost $560,000 in Q4 after posting a $1.17 million loss from selling part of its CDO investments, it added. (Xinhua)
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