Hello, I am Jun Ji-hye, a reporter at The Korea Times. I primarily cover financial authorities and write articles on a wide range of topics related to finance and capital markets. If you have any information to share, feel free to email me at jjh@koreatimes.co.kr, and I will review it carefully. I am committed to always doing my best to communicate with readers through high-quality articles.
Banks ramp up drive to attract foreign direct investment
Lee Dae-hee, left, CEO of the Korea Venture Investment Corp., and Song Yong-hoon, director of SME/SOHO Customer Group at KB Kookmin Bank, pose after signing a business agreement at the bank's headquarters in Seoul, June 24. Courtesy of KB Kookmin Bank
By Jun Ji-hye
Banks are stepping up efforts to capture a larger share of the foreign direct investment (FDI) market amid rising foreign capital inflows, as political uncertainty subsides following the launch of the new government administration on June 4 and expectations for economic stimulus grow, industry officials said Wednesday.
FDI refers to foreign investors making direct investments in shares or equity issued by domestic firms. Banks support these transactions by handling reporting procedures, opening accounts and facilitating foreign currency transfers, earning fees for these services.
On June 24, KB Kookmin Bank signed a business agreement with the Korea Venture Investment Corp. to promote foreign investment in Korean venture companies.
Under the agreement, the two institutions will offer customized financial services for foreign investors interested in domestic startups, with the bank's FDI specialists providing practical support. The bank also plans to operate dedicated branches specializing in venture investment.
"Interest in Korean venture companies is growing, with annual investments from overseas venture capital firms exceeding 100 billion won ($74 million). We will redouble our efforts to support promising domestic startups on their journey to becoming unicorns," a KB Kookmin Bank official said.
Shinhan Bank launched "Shinhan FDI Partners" on June 19 to provide systematic and comprehensive support for foreign investors.
The new initiative brings together expert teams, including the global investment support team, the domestic FDI cooperation team and the foreign exchange and capital reporting team, to deliver end-to-end, one-stop services across the entire investment process.
Specialists with expertise in key regions such as the United States, China and Japan will work directly with global investors, offering tailored assistance from the initial market entry phase to business expansion in Korea.
"We aim to provide customized investment consulting services for both foreign companies investing in Korea and Korean firms looking to expand abroad. Our goal is to deliver distinctive financial solutions and continuously create added value for our clients," a Shinhan Bank official said.
Woori Bank has been extending its communication channels with foreign investors by operating face-to-face consultation centers in Gangnam and Gwanghwamun areas.
NH NongHyup Bank is set to establish a specialized center aimed at boosting FDI attraction by the end of this year.
Hana Bank has maintained Korea's first dedicated team focused exclusively on supporting FDI since 1999.