By Kim Jae-kyoung
Staff Reporter
SC First Bank, the Korean arm of the U.K. banking giant Standard Chartered, said Wednesday that it has finally received the green light to establish a financial holding company from the financial regulator.
The lender said in a statement that the Financial Services Commission gave a final nod to its application, a move that will make SC First the first foreign lender to become a financial holding company in Korea.
With the approval, Standard Chartered will launch its holding company at the end of this month, with five companies ― SC First Bank, SC First Fund Service, SC Capital, SC Mutual Savings Bank, SC Securities ― incorporated as subsidiaries of the group.
SC First said that the establishment is expected to enable Standard Chartered to leverage the marketing capabilities in each of its affiliates, dramatically increasing cross-sell opportunities across the businesses, and realize synergies by sharing core capabilities and services.
``We are pleased to receive the final approval from the FSC. This is a significant milestone for us,'' SC First Bank CEO David Edwards said in a statement.
``We are confident that this will bring new possibilities in terms of a wider range of product and service offerings for our customers; and exciting career opportunities for our employees,'' he added.
The move raised the number of financial services companies operating in South Korea to five. Under a holding firm system, it is easier for financial companies to seek more takeovers and develop and sell a wide range of financial products.
South Korea started permitting foreign financial companies to establish holding companies here after a related law was revised in August 2007.
Standard Chartered Bank acquired Korea First Bank in April 2005 for 3.4 trillion won ($2.7 billion) and renamed it SC First Bank in September the same year.