Southeast Asia's Top 3 Bank UOB Opens Seoul FDI Center... "Supporting Korean Companies' Expansion into Southeast Asia"

"Discussions Underway for Establishing a Data Center in Korea"

UOB (United Overseas Bank), one of the three major banks in Southeast Asia, is opening a Foreign Direct Investment (FDI) advisory center in Seoul to support Korean companies entering the Southeast Asian market. With a business model specialized in the ASEAN (Association of Southeast Asian Nations) region, UOB offers tailored solutions beyond simple advisory services, including risk management and support for building local networks. The opening of the center is expected to increase collaboration with Korean companies, such as establishing data centers.

According to the financial sector on the 27th, UOB will open its 11th FDI advisory center in Seoul, expanding the existing ‘Korea Desk’ established in Singapore in 2023. The advisory center will leverage UOB’s network and market expertise to support Korean companies’ market entry while making it easier for foreign investors to access the Korean market. The focus is particularly on Korean companies’ expansion into the ASEAN region.

Sam Cheong, Executive Director of UOB Group and Head of Group FDI, is explaining about the opening of the UOB Seoul FDI Advisory Center held at Seoul Finance Center on the 25th. Photo by Oh Gyumin

At a press conference, Sam Cheong, Executive Director of UOB Group and Head of Group FDI, said the goal of opening this center is “to support Korean companies,” noting that the influence of Korean companies in the ASEAN region is expanding. He predicted that the establishment of a ‘Comprehensive Strategic Partnership’ between Korea and the ASEAN region in October last year will have a significant impact. Considering the scale of exchanges, Cheong analyzed that this trend will continue and more companies will seek to enter the market. In fact, the volume of FDI flowing from Korea to Southeast Asia more than doubled from $5 billion (approximately 7.27 trillion KRW) in 2017 to $10.9 billion in 2023.

Since 2011, UOB has operated an FDI advisory department, helping over 5,000 companies expand their businesses into Southeast Asia. The total expected investment scale of these companies has exceeded SGD 50 billion (approximately 53.525 trillion KRW). Since 2020, these investments have created 250,000 jobs. In particular, UOB has supported more than 150 Korean companies in entering the Southeast Asian market. The expected investment scale of Korean companies amounts to SGD 3 billion (approximately 3.2547 trillion KRW).

Based on its experience in the ASEAN region, UOB plans to provide specialized advisory services. UOB was the first bank in Singapore to start FDI advisory services. It currently operates FDI centers in 11 countries, including six in the ASEAN region (Myanmar, Singapore, Indonesia, Thailand, Malaysia, and Vietnam), demonstrating its deep understanding and accumulated know-how of the local markets. Cheong said, “We support companies pursuing a hub-and-spoke model, using Singapore as a regional headquarters or research and development (R&D) center as a springboard to expand into other parts of Southeast Asia,” and added that UOB will provide solutions based on its network of over 400 branches in the ASEAN region. UOB’s main FDI advisory services include market entry strategy and regulatory consulting, financial and risk management services, and support for building local networks.

While UOB was reserved about collaborations with Korean banks or specific cases of corporate expansion, it showed strong interest in data center establishment. When asked by this publication about the reason for establishing data centers, Cheong replied, “Because there are many AI-related technology companies in Korea.” Regarding the timing of the establishment, he emphasized, “It is still in progress.”