NongHyup Bank President Kang Tae-young will embark on a tour of overseas branches in Singapore, Hong Kong, and London, England. NongHyup Bank plans to strengthen its overseas customer base and branch capabilities this year to diversify its portfolio and revenue sources.
According to the financial sector on the 26th, President Kang plans to visit Singapore next week to receive a report on the establishment of a local branch. NongHyup Bank has applied for branch establishment to the Monetary Authority of Singapore (MAS), aiming to open the branch in the first half of next year. Additionally, President Kang will visit the Hong Kong branch and the London branch to directly assess the status and direction of local operations.
Having entered his first year in office this year, President Kang is expected to focus on strengthening global competitiveness during this business trip. The London branch of NongHyup Bank, which opened last month, is the bank's first overseas branch in Europe, marking a success nearly four years after the establishment of the London office in 2021. The Hong Kong branch, established in the same year as the London office, has rapidly grown after establishing an investment banking desk this year and ranks among the top in terms of assets and net profit among NongHyup's overseas bases.
In Singapore, where preparations for opening are still underway, the Monetary Authority of Singapore is reportedly reviewing NongHyup Bank's business plans and asset size. Once the Singapore branch opens, it is expected to create synergies in the rapidly growing blockchain business, which has garnered significant interest in the banking sector recently. NongHyup Bank has already signed a memorandum of understanding (MOU) for foreign remittances with the blockchain company Fireblocks in Singapore.
The expansion of overseas branches is meant to escape the saturated domestic financial market and secure sustainable new growth engines. NongHyup Bank is a latecomer among commercial banks in expanding into overseas markets. Currently, NongHyup operates two corporations and 11 branches abroad. In comparison, KB Kookmin Bank has five local corporations and 17 branches, while Woori Bank has five corporations and 18 branches, which is significantly larger.
In addition to Singapore, NongHyup Bank is preparing to obtain branch licenses in Ho Chi Minh City, Vietnam, within the year and is also exploring strategic investments. The bank is categorizing its business models into three regions based on the characteristics of the countries it enters: ▲ advanced finance (U.S., Hong Kong, Australia, Europe) ▲ corporate finance (China, India, Vietnam) ▲ retail (Myanmar, Cambodia).
Since taking office in January, President Kang has held a New Year video conference with overseas branch managers, emphasizing the expansion of global customers and profit-centered business growth. He urged the overseas branch managers to "create a trustworthy and competitive NongHyup Bank abroad through the execution of work based on principles and continuous strengthening of internal controls."