South Korea's largest bank launches in Cambodia
Chim
South Korea's largest bank launches in Cambodia
Written by Nguon Sovan
Friday, 08 May 2009
Kookmin Bank, the biggest lender in South Korea, opens first outlet in
Phnom Penh to boost regional presence
Another South Korean bank launched operations in the capital Thursday,
despite the global financial crisis and a local construction sector
slowdown that forced many Korean firms to leave the Kingdom.
"Kookmin Bank Cambodia is the fifth commercial bank from South Korea
[in Cambodia], whose total share capital is 100 percent held by Korean
shareholders," said Chea Chanto, governor of the National Bank of
Cambodia, at the launch on Thursday.
He added that Kookmin's entrance reflects returning confidence in
Cambodia's banking sector among Korean investors.
"I hope the bank will bring more cross-border experience, new
innovation and impeccable financial products to meet the demand of
customers," said the governor.
He said that as the supervisory authority for the banking industry,
the central bank supports free and fair competition to ensure loans
with reasonable interest rates.
"The National Bank of Cambodia needs bankers with entrepreneurial
spirit and professional skills to contribute to the development of the
industry, not just simple creditors who offer loans," Chea Chanto
said.
Sohn Young Hwan, senior executive vice president of Kookmin Bank, said
Thursday that Cambodia's financial sector is attracting interest in
South Korea. "We are the lender in Korea, and we plan to extend the
unit's customer base from local companies to Cambodian investors by
introducing private banking and other retail services," he said.
"We'll focus our loans on small and medium enterprises."
Launching Kookmin Bank Cambodia brings the number of commercial banks
in the Kingdom to 25.
"There are a lot of commercial banks in Cambodia, but it is not too
late for Kookmin to invest here because Cambodia is a developing
country; Cambodia has just started to grow its financial industry,"
Woo Chi-koo, general manager of Kookmin Bank's global business
department, told the Post.
"Thanks to our strong know-how and leadership, we believe that our
business will expand."
He said that Kookmin Bank Cambodia is a joint-venture between Kookmin
Bank Korea and Khmer Union Bank of Cambodia, with Kookmin holding a 51-
percent stake. The venture was set up in July last year and changed
its name to Kookmin Bank Cambodia. The rest of the shares are held by
South Korean manufacturers including KTC Kyung An Cable, Taihan
Electric Wire and Posco Engineering and Construction.
Kookmin Bank Cambodia is located on Samdech Pan Street in Daun Penh
district, opposite the Korean embassy.
According to central bank rules, launching a commercial bank requires
registered capital of US$13 million. All commercial banks will be
required to triple capital to $37.5 million by the end of 2010.
More Koreans are ready to invest in Cambodia, but "the economic crisis
and the strength of the US dollar caused many Korean investors to take
a ‘wait and see' approach. Many of them are waiting for the won's
value to increase," the South Korean embassy's Second Secretary Uhm
Won-jae said Thursday.
ADDITIONAL REPORTING BY GEORGE MCLEOD