Kookmin eyes China for global expansion
CEO Min Byong-deok, second from left in the first row, poses with employees of KB Kookmin Bank China in his visit to the lender’s Chinese unit earlier this week. / Courtesy of KB Kookmin
By Kim Jae-won
KB Kookmin Bank said Tuesday that it was seeking to overcome the daunting financial crisis by finding new revenue sources in overseas markets.
The nation’s biggest lender by assets said that it has sets its sights on global markets to create new profits. As part of its strategies, it will reinforce its relationship with parent company KB Financial Group.
Its recent launch of Chinese operations and a new Beijing branch is a good example. The lender opened KB Kookmin Bank China and the lender’s fourth outlet in the capital city earlier this week in cooperation with the group.
Scores of the group’s executives, including group Chairman Euh Yoon-dae and bank CEO Min Byong-deok, took part in the launch ceremony, illustrating the group’s interest in the world’s second-largest economy.
The bottom line of the lender’s global strategy is to focus on emerging markets, where the lender could provide services more competitively than local and international rivals. KB Kookmin also considers risk management on the top of its lists to avoid possible losses.
“We are considering the markets of Indonesia and Myanmar, which have huge growth potential thanks to their large populationd, abundant natural resources and changes in regulations,” said the bank in a statement.
Experts say Indonesia is one of the fast-growing economies in Southeast Asia, posting more than 5 percent economic growth over the last few years. Myanmar is also drawing attention from global investors, as its government has eliminated regulations in its financial markets, in a gesture to open its market to foreign investors.
KB Kookmin also opened an Osaka branch earlier this year, reinforcing its business in Japan with its Tokyo outlet. The lender also launched a Mumbai office this year, taking a first step into India, another emerging market, which has huge potential to grow.
KB Kookmin’s Cambodian unit provides a successful example of localization. More than three-quarters of the operation’s customers are native Cambodians, unlike other Korean banks, which have been focusing on Korean businesspeople in the country.
The bank plans to open additional branches in Cambodia from next year, expanding its business in the country further. From the long-term perspective, it aims to be a mid- to top-class player in the Southeast Asian country.