Commercial Banks Expand to India, Mexico, and Poland... Seeking Growth Through Overseas Branches

Plans to Add New Branches in India by Woori and KB
Shinhan and Hana Strengthen Networks in UK, Mexico, Africa, etc.
Policy Finance Institutions like KIE and KDB Also Seek New Entries and Expansion

Major commercial banks are focusing on expanding their overseas branches. Following Woori Bank's plan to open two additional branches in India, KB Kookmin Bank is also set to establish two new branches in India. Shinhan Bank and Hana Bank plan to expand and strengthen their networks in regions such as the United Kingdom, Mexico, and Africa. This is interpreted as a blueprint to overcome the limitations of the domestic market through the expansion of overseas branches.

According to the Financial Supervisory Service and the financial sector on the 27th, Woori Bank plans to open two branches in Pune and Ahmedabad, India, and start operations soon. This year, the bank decided to prioritize investment in expanding its overseas network instead of opening additional domestic branches. Based on Woori Bank's first-quarter report this year, no plans have been finalized for opening new domestic branches due to saturation.

Woori Bank has been increasing its local branches in India since opening its Chennai branch in 2012. In 2017, it added branches in Gurgaon and Mumbai, and with the two new branches, it will have a total of five branches in India.

Pune is the center of the automotive industry, hosting production bases for both Indian and foreign automobile brands. Korean partner companies such as POSCO and LG Electronics have also entered the market there. Ahmedabad is home to the largest petrochemical complex and the port with the highest export share. Additionally, Woori Bank is accelerating the conversion of its Warsaw office in Poland, considered a gateway to Eastern Europe, into a branch this year.

KB Kookmin Bank also plans to open one branch each in Chennai and Pune, India, targeting the third quarter. With these new branches, the number of KB Kookmin Bank branches in India will increase to three, including the Gurugram branch. These areas host production plants for Samsung Electronics, Hyundai Motor, and LG Electronics, and the branches are expected to support these companies' financing and employees' banking needs. KB Financial Group stated, "We are preparing to open after receiving approval from local authorities."

Following the establishment of branches in India, KB Kookmin Bank is reportedly considering expanding facilities in Singapore, Beijing (China), Yangon (Myanmar), Phnom Penh (Cambodia), and Jakarta (Indonesia). It also plans to establish a 'Korea Desk,' an office-level facility, in Warsaw, Poland, to expand corporate banking services targeting Korean companies.

Shinhan Bank and Hana Bank are focusing on expanding their networks to the United Kingdom and Mexico. Shinhan Bank plans to establish four bases, including London (a global financial center), Monterrey in Mexico, and an unspecified location in Africa. Hana Bank is also exploring entry into London, Monterrey, and Warsaw, Poland. As more companies relocate production bases to Mexico, corporate banking demand is increasing, presenting opportunities.

Following major commercial banks, policy financial institutions are also continuing efforts to expand the territory of 'K-Finance' in Poland and India, where corporate banking opportunities exist. Industrial Bank of Korea plans to convert its office in Wrocław, Poland, into a corporation and open a branch in Chennai, India, to support Korean companies operating locally. Korea Development Bank is also reportedly considering establishing an office in Mumbai, India.