CEO says bank also plans to open branches in South America
Korea Exchange Bank CEO Yun Yong-ro unveiled his global business strategy to focus on the private banking sector and attract wealthy Koreans residing in the U.S.
“We are considering reentering the (retail banking) market in the western and eastern parts of America,” he told a news conference in downtown Seoul on Thursday.
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Yun Yong-ro |
In 2004, KEB had to close down its retail banking business in Los Angeles and New York City due to U.S. financial regulatory rules banning an equity fund-owned bank from receiving deposits from retail customers.
As Hana Financial Group acquired KEB from Lone Star Funds last February, the bank has been allowed to resume its retail business.
While CEO Yun has yet to make public detailed strategies for the North American units, KEB managing director Shin Hyun-seung said the bank “is mapping out projects to launch the PB sector in L.A. and New York.”
Shin, in charge of the bank’s international operations, added that the main target market would not be young Korean-Americans, but wealthy, senior Koreans who may not good at English.
In a bid to bolster PB in overseas markets, Hana Financial has dispatched a high-ranking wealth management expert to KEB.
The bank has been offering only corporate loan and foreign exchange services for the past eight years.
Its upcoming project to reenter the retail market is drawing wide interest as about one million Koreans reside in L.A. and 800,000 in New York City.
Aside from the U.S. cities, the bank is seeking to tap into the PB market in Japan, Indonesia and Hong Kong, targeting wealthy Koreans in those countries as well.
Yun also clarified his willingness toward actively making inroads into the South American market.
“We plan to advance into Brazil, Argentina and Chile,” he said. “The method could be M&As or establishing corporations there.”
KEB is moving to convert a corporation in Brazil and liaison office in Chile into branches within several years.
The main target in South America would not be Korean individuals but Korean enterprises, according to managing director Shin.
Yun said, “KEB has lost a certain portion of our market share in foreign countries. We have to regain it as soon as possible.”
He added KEB’s global targets also include East and Southeast Asian markets, including China.
When asked if there will be any restructuring plan led by Hana Financial, Yun downplayed the possibility that the group will conduct a “branch restructuring nationwide” in the near future.
The 57-year-old CEO formerly served as CEO of the state-run Industrial Bank of Korea. He had also worked as vice chairman of the Financial Services Commission and chief of the Securities & Futures Commission, an arm of the FSC.
Yun is a long-time veteran in finance, beginning his career at the Finance Ministry after passing the High Civil Service Examination in the 1970s.
By Kim Yon-se (
kys@heraldcorp.com)
