Hana to up presence in Middle East
Hana Financial Group Chairman Kim Jung-tae, right, talks with Abdulla Saleh Al-Raisi, second from right, CEO of the Commercial Bank of Qatar, at the latter’s office in Doha, Qatar, on Jan. 24. They discussed cooperation between the two companies. / Courtesy of Hana Financial Group
By Kim Rahn
This year will be especially busy for Hana Financial Group Chairman Kim Jung-tae because it marks the start of the group’s full-scale global expansion drive.
After setting a fresh goal of making Hana one of the world’s top 40 financial groups by 2025, Kim has been working on strengthening cooperation with foreign financial companies and expanding Hana’s overseas networks.
He traveled to the Middle East last month.
During the visit, Kim met with Abdulla Saleh Al-Raisi, CEO of the Commercial Bank of Qatar (CBQ), and talked about the “Korea desk,” a window at the Qatari bank which was designed to provide financial services to Korean companies operating in the country.
The window has been run jointly by the CBQ and Hana Group’s banking arm since April 2012, thanks to a Hana Bank staffer who was sent there. It is recognized as a successful business model, as Hana was able to cooperate with the local bank without spending much money for office rent or other expenses.
“Kim and Al-Raisi agreed to strengthen cooperation and expand exchanges between the two companies by taking advantage of each other’s global networks,” a Hana official said.
The official said many Korean companies are operating in Qatar, where large-sized construction projects are ongoing ahead of the 2022 World Cup.
“The two chiefs discussed how to provide quick financial services to Korean firms there, and how to transfer Hana’s knowhow in smart banking to the Qatari lender.”
Kim also met with Abdulla Bin Saud Al-Thani, governor of the Qatar Central Bank, and talked about financial exchanges between Korea and Qatar to mark the 40th year of diplomatic ties.
He visited branches of the group’s other banking arm, Korea Exchange Bank (KEB), in Bahrain, Abu Dhabi and Dubai.
Hana Financial laid the groundwork for business in the Middle East when Kim was CEO of Hana Bank. The bank signed an agreement for cooperation with the National Bank of Abu Dhabi in the United Arab Emirates in 2010, and a similar pact with the CBQ in 2011.
“Kim’s visit to the Middle East shows his determination to expand Hana’s overseas business and make the group a global player,” said the official.
Earlier this year, the group announced a new vision, “The Trusted Premium Global Financial Group.” It stated its ambition to expand its profits from overseas operations from 2012’s 237 billion won to 2.1 trillion won by 2025, raising its portion to total earnings from 15.7 percent to 40 percent.
It aims to become one of the world’s top 40 financial groups and Asia’s top five by that time.
“Competition in the domestic market is meaningless. Through the takeover of the KEB, we now have 127 networks in 24 countries, the largest among Korean financial groups. Besides just increasing the number of branches, we’ll be a real global player by understanding the culture and people of the countries where we are operating,” Kim said.
The group also invited 124 local staffers at its overseas branches to Korea, including executives of China Minsheng Bank and the Bank of Jilin with which Hana is cooperating. They visited Hana’s headquarters and experienced Korean culture.