K-Finance, Expanding Rapidly in Asian Markets Despite COVID-19

Hana Bank Obtains Approval to Open Taipei Branch

The appearance of Indonesia KB Bukopin Bank acquired by Kookmin Bank

[Asia Economy Reporter Park Sun-mi] Korean financial companies are expanding their influence by continuously broadening their presence in the Asian region. After a pause in overseas expansion due to the spread of COVID-19, banks are now extending their reach into overseas markets, especially Asia, to address concerns over low interest rates and low growth in the domestic market.

According to the financial sector on the 20th, Hana Bank has obtained approval from the Taiwan Financial Supervisory Commission to open a Taipei branch, becoming the first domestic bank to do so, and is currently proceeding with procedures for an official opening early next year. This is part of Hana Financial Group's ongoing 'Global 2540' strategy aimed at expanding its global financial business and revitalizing investment banking (IB) operations. It is expected to play a key role as a foothold for building a Southeast Asian digital payment network by creating positive synergy between Hana Financial's strengths in global and digital sectors.

Hana Financial Group also partnered with the mobile platform Line to launch a digital banking service called Line Bank in Indonesia. This is the first case of a domestic bank collaborating with a big tech company to start financial services in Southeast Asia, offering services such as account opening through non-face-to-face real-name verification, time deposits, debit cards, cardless withdrawals, and utility bill payments.

KB Kookmin Bank recently obtained preliminary approval from the Monetary Authority of Singapore to establish a branch and is proceeding with the branch establishment process. Upon opening the Singapore branch, Kookmin Bank will be able to handle all operations including corporate finance, investment finance, capital market-related businesses, and securities, except for local currency-based retail operations. The bank places great significance on establishing a base in Asia’s leading financial hub.

Kookmin Bank also successfully concluded a KRW 1.6 trillion damages lawsuit with Indonesia’s Bosowa Group by withdrawing the lawsuit, which has further accelerated the normalization process of KB Bukopin Bank.

NongHyup Bank received preliminary approval to establish a Beijing branch in China and has also obtained final approval to open a Hong Kong branch. The bank aims to secure final approval for the Beijing branch within this year and to open the Hong Kong branch.