Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Asian financial hubs shut doors on Korea
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By Park Jae-hyuk
Authorities, companies not worried about entry ban
By Park Jae-hyuk
Businesses here are practically unable to physically access all of Asia's financial hubs after Singapore became the latest country to restrict the entry of foreigners traveling from Korea, which has the second-largest number of confirmed COVID-19 cases worldwide.
The financial authorities and companies here, however, have denied speculation that the entry ban would have a negative impact on their overseas businesses.
According to the Ministry of Foreign Affairs, Wednesday, Singapore started the entry and transfer ban on all foreigners who have visited Korea in the preceding two weeks, in order to prevent the spread of the coronavirus to the city state.
This came after measure taken by Hong Kong, Feb. 25, which also prohibited the entry of all foreigners who had traveled to Korea in the previous 14 days.
Hong Kong and Singapore, which are among the four Asian Tigers, have been well known for their roles as international financial centers, housing the Asia-Pacific headquarters of most global financial companies. Many Korean financial firms' operations are based in the two, taking charge of their Asian businesses.
Korean financial firms had 28 operations in Hong Kong and 21 in Singapore as of December 2019, according to the Financial Supervisory Service (FSS).
Vietnam, which has served as the basecamp for Korean banks' expansion in the Southeast Asian market, has also imposed a de facto entry ban on Koreans.
The country has banned the entry of foreigners who traveled to Daegu and North Gyeongsang Province in the preceding two weeks, and has quarantined all foreigners who visited Korea within the past 14 days.
It also suspended a 15-day visa-waiver program for Korean visitors.
As of the end of 2019, Korean financial firms had 54 operations in the Southeast Asian country.
The FSS also has an office in the Vietnamese capital of Hanoi.
As to financial hubs in China, Shanghai and Beijing are also quarantining foreigners who have visited Korea in the past 14 days.
Japan has banned the entry of foreigners who visited Daegu and Cheongdo in North Gyeongsang Province within the past 14 days.
Taiwan quarantines all people who have visited from Korea.
Against this backdrop, the FSS, which is in charge of supporting Korean financial firms' overseas operations, said the entry bans would have a limited impact on Korean companies.
“As their employees are already on site, there will be no problems arising from the entry bans,” Kim Byung-chil, head of the FSS' international department, said.
He declined to comment on any contingency plan in the case of prolonged entry bans.
Financial companies shared this view.
A Mirae Asset official said his company will not face problems as local staff operate its Asian subsidiaries.
Korean Reinsurance Company having a subsidiary in Hong Kong said its communications with foreign subsidiaries are available via email and its intranet.
State-run banks also said they can also communicate with their overseas branches online.
Shinhan Bank, the largest foreign bank in Vietnam, agreed that the entry ban would have a limited impact.
Instead, it has made more efforts to prevent the spread of anti-Korean sentiment in the country.
Shinhan Vietnam Bank decided to cut interest rates on corporate loans and to offer commission-free online transaction services to individual customers.
It also bought watermelons last month from Vietnamese farmers facing difficulties from the coronavirus outbreak.