IBK Industrial Bank Obtains Approval to Establish Local Subsidiary in Myanmar

[Asia Economy Reporter Kwon Haeyoung] IBK Industrial Bank announced on the 10th that it has received preliminary approval for establishing a local corporation from the Central Bank of Myanmar.

This approval marks the first case among IBK's overseas expansions where a local corporation was established without converting an office into a branch. It is also the first time the Myanmar government has allowed foreign banks to obtain local corporation approval.

The local corporation can conduct transactions not only with foreign companies but also with local companies and can establish up to 10 branches. It can handle most of the services processed by local banks.

Currently, about 300 Korean companies have entered Myanmar. A new "Korea-Myanmar Economic Cooperation Industrial Complex" capable of housing approximately 300 companies is being developed near Yangon, and more Korean companies are expected to enter Myanmar in the future.

An IBK official stated, "By establishing a financial foundation before the full-scale increase of small and medium-sized enterprises entering Myanmar, we will actively support the local settlement and early stabilization of newly entering companies. We will also contribute to revitalizing economic cooperation between the two countries by sharing the policy finance and SME finance know-how accumulated over 59 years with local financial institutions and government agencies."

It is known that a total of 12 banks from 4 countries participated in the Myanmar financial industry approval process, with 7 banks finally selected. Domestically, KB Kookmin Bank obtained corporate approval along with IBK, and the Korea Development Bank received branch approval.