Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Eximbank to reopen Singapore office by June
The Export-Import Bank of Korea's headquarters in Yeouido, Seoul / Korea Times file
By Yi Whan-woo
CEO Bang aims to strengthen foothold in Southeast Asia
By Yi Whan-woo
The Export-Import Bank of Korea (Eximbank) will reopen its office in Singapore in the form of a corporate entity by June at the latest, after it shut down its operation in the city state during the 1997 Asian financial crisis, the state-run lender said on Thursday.
The envisioned office, KEXIM Global (Singapore) Ltd., will come as multiple global businesses have been exiting Hong Kong in recent years due to China's interference in the city's decades-long autonomy.
Export-Import Bank of Korea CEO Bang Moon-kyu / Korea Times file
Eximbank's business expansion to the Southeast Asian city state will also be in line with its CEO Bang Moon-kyu's goal of enhancing overseas networks after he took office in October 2019. This will be the first and only Eximbank branch to open abroad during Bang's three-year term which is nearing its end.
The office will be located in the financial district of Raffles Place. It will be headed by Yu Gwang-hoon, who has been leading Eximbank's taskforce to resume the Singapore operation since it was launched last July.
“We have received preliminary approval from the Monetary Authority of Singapore (MAS) to set up a corporate body and are now awaiting a final approval for the start of business operations,” an Eximbank public relations official told The Korea Times. “The MAS is believed to be in the final stages for us to receive the green light by June at the latest.”
The official said the Singapore office will be the bank's “strategic foothold” in serving its mission of supporting Korean businesses to advance to regional markets in Southeast Asia, Oceania and the Middle East.
Regarding some media reports that the office is scheduled to open in May, the representative explained that was the original plan but it now appears less likely due to several reasons that were undisclosed.
Eximbank currently operates overseas corporate bodies in London, Hong Kong, Jakarta and Ho Chi Minh City, as well as 22 smaller liaison offices scattered around the world, including in the United States, China, Japan, France, Russia, India, Brazil, the United Arab Emirates and Ethiopia.
The Seoul-headquartered bank first opened the Singapore office in 1995 but shut it down two years later during the Asian financial crisis.
What's behind Eximbank's decision to reopen its office in Singapore is Hong Kong losing luster as a financial hub, as many firms have been pulling out of the Chinese city amid lingering uncertainty surrounding its future.
While Singapore has been one of the world's four major financial centers, along with New York, London and Hong Kong, Korea's New Southern Policy also seems to have prompted Eximbank to strategically capitalize on its location.
Initiated by President Moon Jae-in in 2017, the New Southern Policy was aimed at bolstering Korea's ties with the 10 ASEAN member nations. It contributed to the growing presence of Korean companies in the region.
Such presence suggests a need for increasing Eximbank's support in terms of loans, asset management and risk management, among other financial services.
According to Eximbank, a total of 642 Korean companies opened in Singapore between 2017 and 2021 ― 96 in 2017, 145 in 2018, 156 in 2019, 134 in 2020 and 111 in 2021.
The investments among the 642 firms add up to $12.16 billion.
The businesses range from finance, insurance, real estate, manufacturing, construction, IT, agriculture and fisheries to mining.
Eximbank said the Singapore office will offer tailored services in accordance with their needs and help improve their market access in the region.