Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
Card firms accelerate overseas expansion
Shinhan Financial Group Chairman Cho Yong-byoung, fourth from left, poses with Shinhan Card CEO Lim Young-jin, fifth from left, and other Korean and Vietnamese officials, at Shinhan Vietnam Finance's launching ceremony in Ho Chi Minh City, July 2. / Courtesy of Shinhan Card
By Kim Bo-eun
By Kim Bo-eun
Card firms are gearing up to expand their overseas businesses, especially in Southeast Asia, as their subsidiaries have begun seeing profits.
They are expanding their businesses into retail banking, installment financing and digital services.
Subsidiaries in the region have become increasingly important for the card issuers as they face tough circumstances here, including a government-led cut in fees.
Shinhan Card's Vietnamese subsidiary Shinhan Vietnam Finance Company (SVFC) recorded 6.79 billion won in net profit in the first half of this year.
SVFC launched in July after Shinhan received approval from Vietnam's financial authority to acquire Prudential Vietnam Finance Company in January 2018.
As the fourth-largest player in Vietnam's finance firm market, SVFC plans to expand its business to retail banking including car financing.
Shinhan also has card businesses in Indonesia, Myanmar and Kazakhstan, but the group plans to focus on building its presence in Vietnam, which is driving overseas earnings.
KB Kookmin Card's KB Daehan Specialized Bank based in Cambodia posted 138 million won in net profit in the first half of this year. It was the Phnom Penh-based subsidiary's first net profit in 10 months since its launch.
The bank is focusing on car financing and mortgages, and plans to add debit and credit card businesses, credit loans and installment financing to its portfolio. It is also set to adopt fintech to increase transactions through mobile phones.
At the same time, KB plans on expanding its presence in countries such as Laos and Myanmar. In Laos, KB has KB KOLAO Leasing, which focuses on car financing.
Woori Card's Myanmar subsidiary Tutu Finance posted 1.05 billion won in net profit in the first half of the year. The subsidiary started making a net profit this year, after posting a net loss of 346 million won last year.
Lotte Card launched its Vietnam subsidiary Lotte Finance Vietnam in July, after acquiring the country's Techcom Finance last year.
“We face low margins here, and entering Southeast Asia also makes sense considering the government's policies, the relocation of production facilities to the region and rapid growth of markets there,” an official of a card issuer said.