Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
KDB, Eximbank, IBK seek global expansions in 2022
State-run bank CEOs pose at the Korea Federation of Banks' headquarters in Seoul, during their meeting with Financial Services Commission (FSC) Chairman Koh Seung-beom in this September 2021 file photo. From left are Korea Development Bank Chairman Lee Dong-gull, Export-Import Bank of Korea CEO Bang Moon-kyu and Industrial Bank of Korea CEO Yoon Jong-won. Courtesy of FSC
By Park Jae-hyuk
By Park Jae-hyuk
State-run banks are set to open more outlets overseas throughout this year, as their CEOs emphasized the necessity of financing Korean companies doing businesses in other countries.
In line with the global trend of nurturing digital finance and shifting toward renewable energies, the banks are especially pushing ahead with establishing subsidiaries and branches in areas that are viewed as international financial hubs and centers of innovative and eco-friendly industries.
Korea Development Bank (KDB) Chairman Lee Dong-gull said in his New Year's address that the bank will convert its Frankfurt office in to a branch, setting up a venture capital desk in Europe.
These measures are intended to gain a foothold in the German financial hub, which has many experts in carbon financing. KDB plans to secure euros through its Frankfurt branch, using the branch for the bank's expansion in Europe's green finance market.
“We cannot achieve industrial conversion by ourselves,” the KDB chairman said. “In order to participate in setting global standards, we should strengthen ties with the international community.”
He also unveiled the bank's plan to widen its networks throughout Southeast Asia, as part of its efforts to assume global leadership in the financial industry. On a related note, KDB set up a venture capital subsidiary in Silicon Valley last year to invest in Korean-owned companies there.
Export-Import Bank of Korea (Eximbank) CEO Bang Moon-kyu said in his New Year's address that a Singaporean subsidiary will start operations for the bank to improve its capability in sourcing deals from the global market.
Last month, Eximbank's board of directors approved of the bank's investment in its subsidiary to be established in the city state, which has emerged as Asia's leading financial hub that could replace Hong Kong. The new subsidiary will support Korean companies that have tried to expand their presence in Southeast Asia.
“Eximbank should continue to push for changes to become a global financial leader,” Bang said.
Industrial Bank of Korea (IBK) CEO Yoon Jong-won said in his New Year's address that the bank will open a new outlet in Eastern Europe, coming up with additional measures to satisfy the demand for loans from Korean companies doing businesses overseas.
The state-run lender is considering opening an office in Poland, which has emerged as the global battery production hub, where LG Energy Solution and hundreds of its subcontractors have entered over the past few years. Yoon also visited the country last November.
“We have contributed to the financial hallyu (Korean wave) by establishing a subsidiary in Myanmar and helping the establishment of Saudi Arabia's Small and Medium Enterprises Bank (SME Bank),” the IBK CEO said. “Based on our capability in financing small- and medium-sized enterprises, we will lead K-finance, supporting the Saudi SME Bank and forming partnerships with international organizations.”