KEB Hana steps up drive to woo foreign customers

The Korea Times

The Korea Times

Finance

Wed, November 29, 2023 | 13:43

Economy

KEB Hana steps up drive to woo foreign customers

Posted : 2015-11-09 18:55

Updated : 2015-11-09 20:19

KEB Hana Bank President & CEO Ham Youngj-joo, right, poses with Busan Metropolitan City Mayor Suh Byung-soo after signing an agreement to attract foreign investment into the country's biggest port city in anevent at KEB Hana headquarters in central Seoul, Monday. / Courtesy of KEB Hana Bank

By Choi Kyong-ae

KEB Hana Bank said Monday that it is stepping up efforts to woo foreign customers by opening a second international private banking center in Busan next year.

"The International PB Center Busan is aimed at attracting foreign individuals and companies operating in the port city following the first International PB Center Yeoksam, in southern Seoul, which opened in June," a bank spokesman said.

The International PB Center to be built in Seomyeon, Busan, during the first half of next year will specialize in comprehensive corporate banking services and consulting services for foreign investors, mergers and acquisitions (M&As) by foreigners, according to the bank.

"We are targeting to provide world-class private banking services to high-wealth foreign individuals and companies from China, Japan and Russia," the spokesman said.

KEB Hana expects the PB center to be a win-win business model for the bank and the Busan city government as the former strengthens its customer base and the latter sees foreign investment and job creation will contribute to the local economy.

KEB Hana President and Chief Executive Ham Young-joo said in a statement that the business partnership between the bank and the Busan government will help foreigners make an investment or join local M&A opportunities.

Within this year, KEB Hana is planning to open International PB Centers in Beijing and Shanghai to absorb deep-pocketed Chinese customers there. It also plans to add the PB centers in Hong Kong and Jeju Islands, a popular tourism site for Japanese, Chinese and other Asian people, said the statement.

Since the merger between Hana Bank and Korea Exchange Bank in September, KEB Hana has said it will expand its overseas operations and strengthen non-banking businesses to offset declining margins in the saturated domestic market.

At a press conference held on Sept. 1, Ham said that current market conditions were getting tougher for banks. "With interest income falling steadily, banks badly need to find an alternative growth engine outside the country."

The CEO said the bank will strive to diversify income sources by advancing into emerging markets, including China, Indonesia, Canada and the U.S., and building up its investment banking business, among others.

Hana Financial Group, which has KEB Hana as flagship unit under its wing, aims to earn up to 40 percent of its net profit from overseas operations by 2025. At the end of June, the ratio was 18 percent.

The banking group runs operations in 24 countries under the name of Hana Bank or KEB as of the end of July.

In the third quarter ended Sept. 30, Hana Financial posted a net profit of 266 billion won ($230 million), down 7.9 percent from 289 billion won a year earlier, according to a regulatory filing.

cka@koreatimes.co.kr