Another Aftermath
The China Insurance Regulatory Commission recently turned down Korean Re’s request for opening a branch in Shanghai. It is said that this is because of the South Korean government’s decision to accept the THAAD system.
Likewise, a South Korean financial company was recently told to be given 15% of the shares of its joint venture to be established in China in spite of the joint venture partner’s previous promise to give 25%. In China, the former percentage in such cases requires an authorization by the Chinese government.
South Korean banks doing business in China are being affected, too. For example, the China Banking Regulatory Commission has postponed the approval of KEB Hana Bank’s request for starting a credit card business in China. NH Bank, in this context, put off until next year an application for establishing a joint venture bank in China.
Non-banking companies are taking a hit as well. For instance, the China Banking Regulatory Commission recently told Samsung Electronics not to establish a financial corporation in Samsung Electronics Beijing in spite of the current law that allows the establishment of such corporations functioning as banks by enterprises doing business in China.