Value context and insight. lkm@koreatimes.co.kr
Top financial groups accelerate regional expansion in line with government policy
A composite image shows the headquarters of the country's four largest financial holding companies — KB, Shinhan, Hana and Woori. Korea Times file
By Lee Kyung-min
Korea’s major financial holding groups are speeding up regional expansion, as the government pushes ahead with its balanced growth initiative defined as “five growth poles, three special zones,” market watchers said Sunday.
The drive seeks to establish key regional hubs, in a shift from decades of Seoul-centric growth to a more sustainable model.
Central to the approach is to bring core subsidiaries, capital-market functions and professionals, as a financial foundation to local economies and industries.
According to financial market sources, KB Financial Group plans to establish a “KB financial town” in Jeonbuk Innovation City in Jeonju, North Jeolla Province.
Its banking, securities, insurance and asset management operations will be housed there, and around 100 employees will be dispatched there in addition to the 150 already working there.
The group plans to transform the site into a strategic hub supporting the National Pension Service, the country’s public pension fund headquartered nearby.
The plan is expected to boost job creation and local infrastructure advancements.
Shinhan Financial is also expanding its presence in the province.
The group has 130 capital market professionals based in Jeonju and the number will be increased to over 300.
Hana Financial plans to relocate its headquarters to Incheon in the second half of this year.
Woori Financial Group is focusing on region-based investment and startup support.
Four of its six “DinnoLab” startup incubation hubs operate outside Seoul.
Ten of the group's 13 BIZ Prime Centers, designed to service small and medium-sized enterprises, are also located outside Seoul.
President Lee Jae Myung mentioned KB Financial’s initiative on social media. “The effects of relocating to regional areas seem to finally emerge," he posted. "Let’s make an even greater effort toward balanced national development. I thank KB Financial Group.”