Why Are Korean Banks Turning Their Attention to Poland?

The rise of Poland as a prominent hub for Eastern European electric vehicle battery and defense industries has positioned it as a strategic focal point for domestic and international corporations. The recent collaboration with Ukraine’s reconstruction efforts has also attracted attention from domestic financial institutions. This, in turn, has fueled interest in Poland as an attractive arena for business expansion and diversification.

Notable momentum is evident in the entry of Korean enterprises into the Polish market. In April of this year, Hanwha Aerospace established its European entity, “Hanwha Aerospace Europe,” in the Polish capital of Warsaw. Furthermore, POSCO Holdings inaugurated the Poland Legnica Sourcing Center (PLSC), a secondary battery recycling facility, in Brzeg Dolny, Poland, in August of the preceding year.

In the financial realm, Industrial Bank of Korea (IBK) has emerged as a key player in Poland’s burgeoning landscape. The bank made the decision to pursue Polish expansion in 2018 to support Korean companies venturing into Eastern Europe. Despite delays caused by the prolonged COVID-19 pandemic and the geopolitical complexities surrounding Russia and Ukraine, IBK opened a local office in May of this year, which is currently staffed by two employees. IBK’s strategy extends beyond a mere presence, encompassing the potential establishment of a comprehensive operational structure to alleviate financial bottlenecks faced by expanding Korean enterprises.

Other prominent financial entities have also ventured into Polish territory. In the previous month, Hana Bank, the Export-Import Bank of Korea (Korea Eximbank), and Korea Trade Insurance Corporation (K-sure) inked a collaborative accord with Polish development bank Bank Gospodarstwa Krajowego (BGK), signaling their entry into Ukraine’s reconstruction efforts. Notably, Yoon Hee-sung, CEO of Korea Eximbank, and Lee Seung-yeol, CEO of Hana Bank, personally engaged with BGK headquarters, pledging multifaceted cooperation in the realm of corporate finance.

Shinhan Bank and Woori Bank, which have already entered Poland, are actively pursuing their business objectives through established outposts within Poland. The European branch of Shinhan Bank, established in 2014 in Wroclaw, is surrounded by an LG Cluster. Woori Bank’s office is located in Katowice, a hub for domestic automotive industry partners.