Domestic major banks are concerned about the deterioration of overseas performance due to the United States' reciprocal tariff measures. This is mainly because the countries subject to high tariffs from the U.S. are concentrated in China and Southeast Asia, where domestic banks have many overseas branches. If a united front against the U.S. is formed primarily by China and Southeast Asian countries, the decline in overseas revenue for banks is expected to become a reality.
According to the Financial Supervisory Service on the 17th, as of the end of September last year, 76 out of 204 local corporations, branches, and offices of 14 domestic banks that have expanded overseas are located in China and Southeast Asia. Regionally, there are 16 in China, 20 in Vietnam, 14 in Myanmar, 9 in Indonesia, 9 in Cambodia, 6 in Singapore, 1 in Malaysia, and 1 in Thailand.
Earlier, U.S. President Donald Trump decided to impose reciprocal tariffs on a total of 60 countries. The highest total tariff of 145% was imposed on China, while high tariffs were set for Southeast Asian countries, including 49% for Cambodia, 46% for Vietnam, 45% for Myanmar, 36% for Thailand, and 32% for Indonesia. However, a 90-day exemption from reciprocal tariffs was granted to the other countries except for China.
Due to the U.S. tariff bomb, President Xi Jinping has been visiting three Southeast Asian countries—Vietnam, Malaysia, and Cambodia—since the 14th to strengthen solidarity. This is interpreted as a plan to form a united front against the U.S. China and Vietnam also adopted a joint statement opposing the U.S. reciprocal tariffs. Concerns are growing that if this trend spreads to other countries, it could lead to an economic recession in Southeast Asia.
This is bound to affect the banking industry's overseas operations. Last year, the combined net profit of overseas subsidiaries of the five major banks—Kookmin, Shinhan, Hana, Woori, and NongHyup—was 832.4 billion won, representing a growth of 4.08% compared to the previous year.
A senior official at a major commercial bank said, "I think expanding overseas branches or entering new markets this year might be difficult."