Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
KB to set up bank branch in Singapore
By Lee Min-hyung
KB Financial Group Chairman Yoon Jong-kyoo
By Lee Min-hyung
KB Financial Group is in talks with the Singaporean government over setting up a bank branch there in a renewed effort to raise its profile in the Asian financial hub, according to sources directly linked with the matter.
KB Kookmin Bank, the flagship of the financial group, closed its Singaporean office after Korea was hit hard by the 1997 Asian financial crisis. But with the city-state strengthening its stature as the top international financial center in Asia in recent years, the group has recently started engaging in re-entering the market.
The bank is the only lender without a branch in Singapore among Korea's top four banks ― the other three are Shinhan, Woori and Hana.
“The holding firm is in internal discussion to confirm what kinds of business will be pursued there, and is looking for models best fit for the market,” an industry source said.
KB Financial Group will spearhead the drive in a comprehensive manner before its subsidiaries, including the banking, card and capital units, directly enter the market, according to the source.
It still remains to be seen over whether the company will focus its business there on microfinance, such as loans, or investment banking, he said.
KB also confirmed the plan, although a spokesman said nothing specific ― including timeline ― has been confirmed yet as both sides are still narrowing down their differences over the plan.
Once the company receives approval, it will tap into the territory as soon as possible at a time when its domestic rivals are already operating businesses there.
“The expansion into Singapore is part of our two-track global strategy with a focus on the Southeast Asian market and developed countries such as the United States,” an official from the company said.
KB is the nation's second-largest financial holding firm by market capitalization and total assets. Even if the company engages in a neck-and-neck competition for domestic leadership against Shinhan Financial Group, KB is deemed a latecomer in terms of global expansion.
It has so far placed a priority on expanding its foothold in some promising Southeast Asian markets, such as Vietnam and Indonesia.
But with the possible opening of the Singapore branch, the company hopes to attract more foreign capital by taking advantage of the country's leading status as an intermediary that brings Western capital into Asian markets.
According to the source, the company is also in the initial stages of talks to open up an office in Frankfurt, Germany, for expansion into the European market.
KB declined to comment on the details of the plan, as no specific progress has yet been made.