Santander Bank Eyes Korean Market
By Kim Jae-kyoung
Staff Reporter
Banco Santander, the largest bank in Spain and one of the fastest growing in the world, is expected to make imminent inroads into the Korean market, according to the financial regulator Tuesday.
The Financial Services Commission (FSC) said Santander, the world's sixth largest lender, has applied to set up a liaison office here as a preliminary step to opening a branch and doing business.
``Last week, Santander turned in an application to open a liaison office, which will collect information regarding domestic financial markets and the banking industry,'' FSC spokesman Yoo Jae-hoon told The Korea Times.
``We don't know yet whether the application is a preliminary move to begin operations in Korea but it is highly plausible,'' he added. A liaison office is not allowed to do business but it can collect information and report to its headquarters.
The regulator plans to go over the application by Feb. 5 and give the green light to the Spanish bank if it meets requirements.
Once Santander enters the local market, it is expected to bring a big change to the banking industry. Its growth has been catapulted by mergers and acquisitions (M&As) and it is expected that it will attempt to take over local financial firms.
Established in 1857, Banco Santander has been regarded as one of the most ideal global banks for Korean lenders to benchmark. At the end of 2007, it had $1.3 trillion in total assets, 11,178 branches in 40 nations and over 60 million customers.
Santander's primary European presence is in Spain and Portugal, but includes operations in 11 countries, including Germany, Italy and Norway. It is Latin America's leader in retail banking with over 4,000 branches, 18 million customers and eight million pension plan participants.
Kim Hee-jip, managing director of Accenture Korea, picked Banco Santander as Korean lenders' model for globalization.
``Santander is a `local major' that has grown by rapid acquisition. It has enjoyed regional success by acquiring capacity, utilizing technology efficiently and developing distribution strength,'' he said.
``Santander utilizes a distribution model that has one unique brand in each geographic region, targeting all customer segments inside the geographic regions with a channeled infrastructure shared across all geographies,'' he added.