South Korean banks saw their financial safety scores dip slightly in the third quarter, a decline driven entirely by the won’s weakness against the U.S. dollar rather than actual business losses. Data released by the Financial Supervisory Service (FSS) on Friday shows the sector’s average capital ratio — the key measure of a bank’s ability to withstand shocks — slipped to 13.59%, down 0.03 percentage points from June. While the sector remains healthy and well above the legal safety minimum of 8%, this marks a reversal from the growth seen earlier in the year.

The decline is a direct result