Hope Bancorp, Inc. (HOPE) Geopolitical Risks and Tariff Landscape: Navigating South Korean Exposure

Hope Bancorp, Inc. (HOPE) holds a unique market position as a primary lender to the Korean American business community exposes it to specific geopolitical risks. Company filings highlight potential sensitivity to adverse economic or political conditions in South Korea, given its Seoul representative office and trade finance activities. Trade disruptions, including the potential for increased tariffs on imported consumer electronics and automotive parts — primary sectors for the bank’s commercial and industrial (C&I) clients — remain a monitorable risk for 2026.

Management noted that $6.3 billion in time deposits are set to reprice in 2026, which may provide a tailwind if interest rates decline. However, the bank remains vigilant regarding supply chain disruptions and persistent inflation that could impact the debt-service capacity of its Small Business Administration (SBA) borrowers. Credit quality showed marked improvement in late 2025, with criticized loans falling 22% year-over-year to $351.1 million.