South Korea's largest banks to expand business across Asia

South Korea's largest banks, KEB Hana Bank, Shinhan Bank, KB Kookmin Bank, NH Nonghyup Bank and Woori Bank, are reportedly looking to expand their business across Asia as they try to boost their foreign presence and drive growth. This comes despite a slowing domestic economy and record low interest rates. Government measures are expected to squeeze the banks' margin in their lending business as financial regulators step up their monitoring on the growing household debt, and the approval for Internet-only banks last year is predicted to stir competition in the banking sector in South Korea.

In stark contrast to restructuring their workforce and branch operations at home, major South Korean banks plan to expand their business across Asia as they seek to bolster foreign presence to drive growth amid a slowing economy and record low interest rates, industry data showed Sunday.



The country’s top five lenders ― Woori Bank, KEB Hana Bank, Shinhan Bank, KB Kookmin Bank and NH Nonghyup Bank ― are stepping up efforts to increase their global operations by adding 120 locations, including branches, subsidiaries and liaison offices, this year, seeking a new income source outside Seoul.



The move comes as the government’s measures are expected to squeeze the Seoul-based banks’ margin in their lending business as financial authorities look to step up monitoring on the growing household debt and efforts to restructure debt-laden and unprofitable companies.



The government’s preliminary approval for Internet-only banks last year is also expected to stir competition in the stagnant banking sector.



State-run Woori Bank, which already has the largest overseas operations, will be the market leader in aggressively pursuing global expansion this year again.



According to the bank, it plans to add some 95 offices and subsidiaries to take the count to 300 from the current 205 in 18 countries.



“While seeking quantitative growth, we will also enhance profitability through various sales strategies in overseas markets,” Woori Bank president and CEO Lee Kwang-goo said.





Yonhap.