KB Financial Group is stepping up its efforts to strengthen its overseas network by opening branches and business cooperation with financial institutions overseas.
Korea’s leading financial group believes such efforts will help it secure a new source of income.
The lender is focusing on the financial markets of China, Indonesia, India and Vietnam, whose rapid growth is expected to continue in the future.
The latest move by KB Financial Group to expand its overseas network was to establish a corporate office in China and to open a branch of KB Kookmin Bank in Beijing in November.
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KB Financial Group chairman Euh Yoon-dae (sixth from right) and KB Kookmin Bank CEO Min Byong-deok (fourth from right) attend a ceremony to open the bank’s branch in Beijing in November. (KB Financial Group) |
In addition to the opening, the Korean lender held a forum on economy and finance in Beijing with the attendance of a handful of high-level government and financial officials.
It is rare for Chinese financial authorities to give permission for operations of a foreign bank branch and its corporate entity at the same time, according to KB officials.
The officials said KB Kookmin Bank, which now has four Chinese branches in Beijing, Guangzhou, Harbin and Suzhou, plans to open more branches in Shanghai, Tianjin, Shenyang and Chengdu.
To early settle its operation in China, the financial group is putting its priority on localization.
To this end, the group is seeking to appoint a Chinese businessman to head of its local corporate entity and outside directors, according to KB officials.
In addition, the group plans to fill executive management and marketing posts there with Chinese financial experts.
“KB Financial Group’s advance into China means that not only Korean residents and companies in China, but also local companies and residents will be able to use advanced financial services offered by the group,” a bank official said.
The Korean financial giant is also seeking partnerships with local banks.
One example of such cooperation is the Be*Twin check card issued by KB Kookmin and China’s ICBC in June, which targets Chinese residents in Korea.
KB Financial Group’s move in China was followed by its establishment of a Vietnamese banking branch in Ho Chi Minh in June and mini-branch in Hanoi in October.
The Korean banking group also sought to expand its network in Japan after its first entry in 1992. It opened a branch in Osaka in August.
The financial group plans to provide advanced financial services to Korean residents and companies in Japan as well as Japanese companies.
In India, the banking organization concluded an MOU with India’s second-largest bank ICICI in June.
“For the successful entrance into overseas markets, the most important things are communication ability and cultural similarities,” a KB official said. “This is why KB Financial Group is turning its eyes to Asian markets.”
Currently, the Korean financial group has nine branches worldwide, including in New York, Tokyo and Oakland.
By Chung Joo-won (
joowonc@heraldcorp.com)
