The Korea Times
By Kim Jae-kyoung
Staff Reporter
With the aftermath of the global financial crisis waning, major Korean banks are beginning to return to globalization plans they had shelved and are moving back into expansion mode in overseas markets.
The move is being led by Kookmin Bank, the nation’s largest lender, which is now pushing to acquire a controlling stake in Kazakhstan’s Bank Center Credit (BCC) by teaming up with the International Finance Corp. (IFC)
KB is now in last-minute talks with IFC and BCC to increase its stake in the Kazakhstan lender to 51 percent to obtain managerial rights. IFC and KB have agreed to equally invest to purchase a 20.5 percent stake in BCC through additional stock purchases or new share offerings.
In March last year, the Korean bank invested 620 billion won in taking over a 30.5 percent stake in BCC, and has sought to further increase its holdings to 51 percent by 2011. But its plan had been deadlocked due to the global financial crisis.
KB also opened its Cambodian corporate entity, KB Cambodia, in May, to serve Korean companies operating there, as well as Cambodian companies.
Shinhan Bank is set to strengthen its presence in Japan, by turning three branches there into corporate bodies in September after receiving approval this month. It also plans to set up a corporate entity in Ho Chi Minh City, Vietnam, soon.
The lender launched subsidiaries in Canada (Toronto) and Kazakhstan this year, and plans to set up more subsidiaries in Vancouver and Calgary to capitalize on the growing Korean population there.
``Since market jitters are still lingering, I think that it is too early to go abroad and take over a foreign bank for overseas expansion. We still need to hold enough cash in case of emergency,’’ a ranking Shinhan official said, asking not to be named.
``We will not pursue quantitative expansion. Instead, we will seek to narrow our target markets and focus on those areas by strengthening existing overseas networks,’’ he added.
Woori Bank has sought to exploit untapped markets, such as Kuala Lumpur in Malaysia, Dubai in the United Arab Emirates and Sao Paulo in Brazil.
In February, Woori opened a representative office in Kuala Lumpur ― the first among Korean lenders ― and in Dubai to carry out market research and support operations in the Middle East region.
The lender plans to launch its office in Sao Paulo in August to capitalize on the market’s growth potential and strategic location. ``The office will focus on building a network with local financial regulators and conducting research to figure out the demand for financial services there,’’ a Woori official said.
Early this month, Korea Exchange Bank (KEB) launched KEB Asia Finance in Hong Kong with $50 million capital to strengthen its investment banking (IB) operations on the global financial market.
``Hong Kong is an international financial hub, and is a link to the Chinese financial market, which has been achieving high growth for over a decade. It has turned ever more important,’’ a KEB spokesperson said.
The bank expects KEB Asia Finance to be a key post to expand its IB business in overseas markets. The new KEB subsidiary will be in charge of IB not only in Hong Kong but also Shanghai. KEB has 46 operations in 21 countries around the world.
Last Thursday, Hana Bank signed a contract with Bank of East Asia, one of the largest banks in Hong Kong, to form a business alliance to strengthen its business in the region. Industrial Bank of Korea (IBK) recently opened its Chinese corporate entity IBK China in Tianjin by turning its five Chinese branches into a subsidiary.
kjk@koreatimes.co.kr
Staff Reporter
With the aftermath of the global financial crisis waning, major Korean banks are beginning to return to globalization plans they had shelved and are moving back into expansion mode in overseas markets.
The move is being led by Kookmin Bank, the nation’s largest lender, which is now pushing to acquire a controlling stake in Kazakhstan’s Bank Center Credit (BCC) by teaming up with the International Finance Corp. (IFC)
KB is now in last-minute talks with IFC and BCC to increase its stake in the Kazakhstan lender to 51 percent to obtain managerial rights. IFC and KB have agreed to equally invest to purchase a 20.5 percent stake in BCC through additional stock purchases or new share offerings.
In March last year, the Korean bank invested 620 billion won in taking over a 30.5 percent stake in BCC, and has sought to further increase its holdings to 51 percent by 2011. But its plan had been deadlocked due to the global financial crisis.
KB also opened its Cambodian corporate entity, KB Cambodia, in May, to serve Korean companies operating there, as well as Cambodian companies.
Shinhan Bank is set to strengthen its presence in Japan, by turning three branches there into corporate bodies in September after receiving approval this month. It also plans to set up a corporate entity in Ho Chi Minh City, Vietnam, soon.
The lender launched subsidiaries in Canada (Toronto) and Kazakhstan this year, and plans to set up more subsidiaries in Vancouver and Calgary to capitalize on the growing Korean population there.
``Since market jitters are still lingering, I think that it is too early to go abroad and take over a foreign bank for overseas expansion. We still need to hold enough cash in case of emergency,’’ a ranking Shinhan official said, asking not to be named.
``We will not pursue quantitative expansion. Instead, we will seek to narrow our target markets and focus on those areas by strengthening existing overseas networks,’’ he added.
Woori Bank has sought to exploit untapped markets, such as Kuala Lumpur in Malaysia, Dubai in the United Arab Emirates and Sao Paulo in Brazil.
In February, Woori opened a representative office in Kuala Lumpur ― the first among Korean lenders ― and in Dubai to carry out market research and support operations in the Middle East region.
The lender plans to launch its office in Sao Paulo in August to capitalize on the market’s growth potential and strategic location. ``The office will focus on building a network with local financial regulators and conducting research to figure out the demand for financial services there,’’ a Woori official said.
Early this month, Korea Exchange Bank (KEB) launched KEB Asia Finance in Hong Kong with $50 million capital to strengthen its investment banking (IB) operations on the global financial market.
``Hong Kong is an international financial hub, and is a link to the Chinese financial market, which has been achieving high growth for over a decade. It has turned ever more important,’’ a KEB spokesperson said.
The bank expects KEB Asia Finance to be a key post to expand its IB business in overseas markets. The new KEB subsidiary will be in charge of IB not only in Hong Kong but also Shanghai. KEB has 46 operations in 21 countries around the world.
Last Thursday, Hana Bank signed a contract with Bank of East Asia, one of the largest banks in Hong Kong, to form a business alliance to strengthen its business in the region. Industrial Bank of Korea (IBK) recently opened its Chinese corporate entity IBK China in Tianjin by turning its five Chinese branches into a subsidiary.
kjk@koreatimes.co.kr
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