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.
'BNP Paribas intends to stay, grow in Korea'
Philippe Noirot, Head of Territory of BNP Paribas Korea, speaks during a recent interview with The Korea Times in central Seoul. / Korea Times photo by Choi Won-suk
By Kim Bo-eun
French banking group leads sustainable finance efforts
By Kim Bo-eun
A number of foreign banks have pulled out of Korea in recent years, amid the country's slowing growth rate and what is seen as limited business opportunities.
This is why the question Philippe Noirot, Head of Territory of BNP Paribas Korea, has often been asked is, why is the bank still here? The bank entered the Korean market in 1976, and celebrated its 40th anniversary here three years ago.
“At the time, we said we wish to stay at least another 40 years. We have great clients and long-standing relationships with those clients. BNP Paribas is a relationship bank,” Noirot told The Korea Times in a recent interview at the BNP Paribas office in central Seoul.
For the French bank, he said, it “has never been a question” whether they are going to stay or leave.
“We have a growing client base and increasing services we can offer to these clients,” he said. “People say Korea might be slowing down a bit and this might be true. But this is still decent growth compared to Europe.”
Over 80 percent of BNP Paribas' clients are Korean entities, and Noirot says the bank still has ample business opportunities with them.
“Korean companies are export-oriented. They are seeking financial services in exports and foreign operations. Because we are present in 72 countries, we are able to help our clients in every area they want,” he said.
This is an advantage BNP Paribas holds as a large foreign bank. Another is its enduring presence in the Korean market.
“We are well-positioned in Korea because our setup is well adapted to Korean corporations,” he said.
Noirot was appointed head of BNP Paribas Korea in June 2015.
BNP Paribas Korea
In Korea, the BNP Paribas Group manages four units in banking, securities, life and non-life insurance.
The fifth legal entity is Shinhan BNP Paribas Asset Management, in which BNP Paribas is a minority shareholder.
BNP Paribas bank has Korean clients with presences in regions including Southeast Asia, China, Western Europe as well as Central Europe, with more companies establishing industrial centers in countries such as the Czech Republic and Poland.
BNP Paribas, as Europe's largest bank, is well able to serve clients' needs. “There is a good fit between Korean companies and the bank,” Noirot said.
The bank is providing services including export finance and project finance in cross regional M&As for Korean clients or European clients seeking to do business in Korea.
“Certain activities require decades of skill building; these activities we are very well recognized for,” Noirot said.
The bank's strategy is to grow organically with clients.
As large corporate clients tend to grow more outside of Korea, the bank seeks to accompany them when they grow abroad.
Sustainable finance
For BNP Paribas, sustainability is a key strategy. In 2017, it signed a declaration with the U.N. environmental program that outlines principles for responsible banking.
In Korea, the bank is helping clients raise funds in the debt capital market through sustainable bonds and green bonds.
This is an area of expertise for the bank, which was ranked no. 1 in the field last year.
“One of the reasons these bonds are more attractive is that the asset managers receive a great amount of push from owners of the funds they manage to invest in sustainable assets,” Noirot said.
This is seen in the growth rate of sustainable bonds in Korea.
“Three years ago it was non-existent and now the scale is several billions [in U.S. dollars],” he said, noting it will continue to grow.
The government has committed to increasing the proportion of renewable energy by 2035.
For BNP Paribas, this is an opportunity, based on its commitment to sustainability and expertise in financing.
“The awareness of Korea of these issues is growing very fast. We see a window of opportunity for us to contribute to that change,” Noirot said.
Push for gender equality
The U.N. Sustainable Development Goals is also the foundation of the bank's CSR activities.
One of the goals BNP Paribas supports is promoting gender equality. As part of such efforts, the bank for the first time became a sponsor of the Seoul International Women's Film Festival held September through October. This is also in line with the bank's long-standing commitment to the movie industry.
BNP Paribas is also seeking to promote gender equality through better female representation at the board level and in management positions.
The group set a target of reaching 25 percent representation of women on its executive committees and more than 30 percent among senior manager positions by 2020.
“Another example is ensuring that whenever we have a position to fill we want to have at least one man and one woman to be interviewed,” Noirot said.
This is intended on breaking stereotypes and challenging the status quo, where certain genders tend to be dominant in certain departments such as IT.
“The recruiting manager makes the final decision but at least the manager will have seen a candidate of each gender and can make a decision being conscious of a potentially unconscious bias,” Noirot said.
Business in Korea as a foreign entity
After spending over four years as chief of the bank's operations in Korea, Noirot says Korea is a demanding environment, as clients are sophisticated and require the best service around the clock.
“Having a partner helps us get a better understanding of how a market works. Every market has rules and ways of doing business that are not always written,” he said.
BNP Paribas set up a strategic partnership with Shinhan Financial Group in 2001.
“You also need to cultivate relationships with clients and answer and exceed their expectations,” Noirot said, noting the competitive environment.
In the end, it all comes down to lasting relationships, he said.
“We help clients through good times when they grow, and when they face difficult situations. It takes a lot of time to build such a relationship,” he said.
“It takes 40 years of presence to be really integrated in the landscape and this is something that we value a lot. We intend to stay in Korea and continue to grow here.”