Korean banks eye Burma

South Korean banks are pushing to make inroads into the Burmese market in a bid to find new sources of income amid a saturated local market, The Korea Times reported on Monday, citing Korean officials.

South Korea's third largest lender, Shinhan Bank, is seeking to open an office in Burma as early as next year assuming that regulations banning foreign banks from operating in Burma are eased, the report said.

“The state-run Industrial Bank of Korea said it plans to apply for permission to open an office there [Burma] within this year,” The Korea Times reported.

Shinhan's main rivals Woori Bank and Hana Bank have already begun to tap the Burmese banking market by setting up offices in October.

“Woori Bank said it opened an office in [Rangoon] in late October with an aim to enlarge it into a branch or a wholly-owned unit in early 2014. Hana Bank also set up an office last month and has clinched a tentative deal to boost its strategic alliance with Myanmar's lender Ayeyarwady Bank,” the report said.

The South Korean banks' push into Burma also stemmed from their falling profits in a saturated local market, The Korea Times reported. Combined earnings by the 18 Korean banks amounted to 7.5 trillion won (US $6.9 billion) in the first nine months of this year, down 39 percent from a year earlier.

source: Mizzima
http://www.mizzima.com/business/8452-korean-banks-eye-burma.html