Standard Chartered confirms it is committed to Korea expansion

The Chairman of Standard Chartered, John Peace, has said that the bank is still committed to the Korean market, dispelling rumours that it may sell its Korean unit. There were reports speculating that Standard Chartered Bank Korea may be the target of mergers and acquisitions following a poor performance by the unit.

Standard Chartered chairman John Peace said in Seoul on Friday that the U.K. banking service group is committed to the Korean market, brushing off industry speculation that it might sell its Korean unit.



“Korea is a key market force. We’re committed to staying and growing our business here in Korea,” Peace said at a forum hosted by the British Chamber of Commerce in Korea.



Market suspicion is that Standard Chartered Bank Korea could be a target of mergers and acquisitions, following the Korean unit’s poor performance.





Peace, however, stressed that the bank would focus on adapting to new technologies and paradigms to emerge in the near future.The outgoing chairman, whose term will soon end, admitted he was frustrated when technologies came as a threat to jobs in the financial sector. However, they are not something to be fearful about, he said.Disintermediation, the removal of banks and brokers as financial intermediaries in transactions as a result of the use of computers, “is a real threat,” but banks should focus on the problems they are trying to solve, not the technology itself, he said. He added that banks should keep investing in new technologies, and particularly in financial technology.Peace underscored his opposition to a potential “Brexit” -- the idea of the U.K. leaving the European Union -- warning that both the U.K. and Korea would suffer tremendous business uncertainty.Peace is also chairman of global luxury brand Burberry. Kim Sung-joo, CEO of leather goods brand MCM Worldwide, joined the luncheon and raised a question about how South Koreans should deal with a heightened nuclear threat on the Korean Peninsula.Peace said South Korea’s patience and understanding should continue.“Instinct tells you you’re doing the right thing. If you overreact to something, that could lead to something far worse,” he said.By Kim Yoon-mi