Value context and insight. lkm@koreatimes.co.kr
No. of Korean financial firms' outlets in ASEAN soaring
By Lee Kyung-min
By Lee Kyung-min
The number of financial firms' outlets in ASEAN member states has nearly doubled over the past seven years, amid local financial groups' efforts to diversify their business portfolios in the rapidly growing market, data showed Tuesday.
The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organization of 10 countries in Southeast Asia, a market emerging as a key growth area under the Moon Jae-in administration's New Southern Policy.
Data from the Financial Services Commission (FCS) showed the number of financial firms' outlets, including corporate bodies, branches and offices, stood at 150 in June, up 92 percent from 78 in 2011.
Of the total, 77 are based in Vietnam (54) and Indonesia (23). They are followed by Myanmar (22), Singapore (20), Cambodia (15), the Philippines (seven), Laos (four), Thailand (three) and Malaysia (two).
Of the newly added 72 outlets, 47 are corporate entities, accounting for over two-thirds of the total, an outcome of strategic localization of Korean financial groups seeking to expand marketing channels with locals.
The outlets represented a combined 13.9 percent of the total overseas assets of the financial firms in 2018, but annual net profit from the region accounted for 29.2 percent of the total.
The data showed the lending business of the financial firms heavily relied on corporate customers, accounting for about 80 percent of the total in June.
Another key growth driver was robust retail services with locals.
This came on the back of hallyu, or the Korean Wave, boosted by Korean cultural and sports figures fast becoming celebrities there.
Other than commercial banks, state-run financial organizations will expand in the region, the FSC said.
“Demand is expected to grow in the region as Korean players are offering advanced services encompassing financial market development, deposit insurance and credit checks,” it said.