Korea's financial leaders to gather in Bali

By Lee Kyung-min

Korea's financial bigwigs will gather in Bali, Indonesia, from Oct. 12 to 14 for the 2018 Annual Meetings of the International Monetary Fund (IMF) and World Bank Group (WBG).

The primary purpose of their visit is to attend IMF meetings but some are expected to meet their counterparts from Indonesia and other Southeast Asian countries to discuss business opportunities there.

The attendees include Shinhan Financial Group Chairman Cho Yong-byoung, KB Financial Group Chairman Yoon Jong-kyoo, NongHyup Financial Group Chairman Kim Gwang-soo and Hana Financial Group CEO Kim Jung-tai.

Woori Bank CEO Sohn Tae-seung and Industrial Bank of Korea CEO Kim Do-jin alongside many leaders of the state-run financial firms will also attend the event.

The rare high participation rate indicates a collective fervor toward expanding business opportunities in Southeast Asia amid saturation of the local financial market.

Given the confirmed attendance of Finance Minister Kim Dong-yeon, expectations are growing that he could have an impromptu meeting with high-profile finance figures.

In a state visit to three ASEAN member countries in November 2017, Moon announced the New Southern Policy, a move to expand the economic influence of Asia's fourth-largest economy in the region.

The so-called “3P” vision, with core emphasis put on people, prosperity and peace, seeks to boost ties among ASEAN member nations.

Over the past few years, many banks and financial groups have been expanding their presence in Indonesia.

In September, Shinhan arranged a deal under which it will be able to supervise the issuance of the “kimchi bond,” set to be issued by an Indonesia firm.

The comprehensive management concerning non-won-denominated bonds is part of its move to enter investment banking (IB) via enhanced collaboration with local subsidiaries.

It was the first time for a Korean securities firm to manage the issuance of a kimchi bond for an Indonesian firm.

Similarly, KB Kookmin Bank acquired a 22 percent stake in Indonesia's Bank Bukopin and became that bank's second-largest shareholder in July.

The acquisition enabled Korea's largest lender by assets to re-enter the South East Asian market after it left in 2008 by selling off stakes in BII Bank to Malaysia's Maybank.

PT KEB Hana Bank, an Indonesian subsidiary of KEB Hana, enjoyed double-digit growth in 2017, with the goal of joining the league of top 20 lenders there.

The IMF and WBG annual meetings will continue from Oct. 8 to 14.

Gathered at the meeting are central bankers, ministers of finance and development, private sector executives, representatives from civil society organizations and academics.

They will discuss issues of global concerns including the world economic outlook, economic development, poverty eradication and aid effectiveness.