Hana speeds up globalization
Hana Financial Group President Choe Heung-sik, sixth from left, cuts a tape with other dignitaries at the InterContinental Nanjing Hotel during an opening ceremony for Hana Bank China’s branch in Nanjing, Jiangsu Province, in this May photo. / Courtesy of Hana Financial Group
By Kim Rahn
Korea Exchange Bank CEO Yun Yong-ro, left, shakes hands with Faisal Lalani, Mashreq Bank’s vice president and global head of financial institutions, at the Jumeirah Hotel in Abu Dhabi, UAE, after signing an MOU for cooperation, in this January photo.
Korean banks are making forays into overseas markets to develop a new growth engine because domestic banking markets are saturated due to intense competition.
Hana Financial Group has been in the lead in the overseas business, with the group’s two banking arms — Hana Bank and Korea Exchange Bank (KEB) — actively setting up overseas branches.
Earlier this month, Hana Bank China, the bank’s local corporation, opened its 19th branch in Nanjing, Jiangsu Province. Along with the branch, Hana plans to do business with not only Korean companies operating in the province but also local Chinese companies.
Indonesia is another country in which Hana Bank aims to expand its operation.
On May 2, the bank’s local corporation, PT. Bank Hana, opened a private banking (PB) center in Jakarta.
“The center will help Korean residents there manage their assets in Korea and Indonesia together. Local Indonesians will also be able to learn various financial information,” a Hana official said.
KEB has the largest number of overseas offices among Korean banks, 53 in 23 countries.
The latest one was opened in Istanbul, Turkey, on May 15, and the second latest one, in Abu Dhabi, United Arab Emirates, last December. KEB was the first Korean bank to operate in the countries. It also signed an MOU with Mashreq Bank, one of the top three banks in Dubai, in January.
“Now KEB has established a bridgehead toward a ‘financial silk road’ connecting Europe, Asia and the Middle East. We plan to pioneer the Middle Eastern and African markets,” said a KEB official.
The bank plans to open more overseas offices this year including in Celuk, Indonesia; Clark, the Philippines; Fukuoka, Japan; Xiqing District in Tianjin, China; and Chennai, India. It aims to have 15 percent of its total earnings from overseas operations by 2015.
Last year, KEB was selected as the “Best Foreign Exchange Bank in Korea” for the 11th consecutive year.