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Hana Financial Group to Boost Share of Global Profit to 40% by 2025
[Special Report on Financial Industry]
Hana Financial Group to Boost Share of Global Profit to 40% by 2025
  • By Yoon Young-sil
  • June 1, 2018, 22:57
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Hana Financial Group chairman Kim Jung-tae
Hana Financial Group chairman Kim Jung-tae

The Hana Financial Group is determined to strengthen its global business capacity as a key growth driver for the future.

The group is aiming to build a stable business portfolio through growth in the global business sector. It is moving forward with a strategy to raise the share of the global division in its pre-tax profits to 40% by 2025.

To this end, the Hana Financial Group will begin to strengthen its competitiveness by expanding internal and external collaboration. Inside the group, the group will strengthen collaboration in the fields of funds, IB, the foreign exchange business, financing with funds from foreign investors, IB deal sourcing and foreign direct investment.

The group will create more sales opportunities by linking with overseas networks of banks and financial investment and capital companies. In addition, the group will help its affiliates advance into overseas markets and successfully establish themselves in those markets by making them advance together or dispatch professionals at the same time.

Externally, the group will expand its marketing channels and business areas by discovering overseas local partners and establish partnerships such as business cooperation and personnel exchanges through strategic alliance with large local banks.

In detail, the group will secure growth momentum and profitability through an entry into emerging markets, expanding localization, expand sales activities for local customers and localize workforces, expand group synergies through the non-banking sector’s overseas advancement and make an efficient entry into the market through collaboration with prominent local business partners and mergers and acquisitions.

By country, the Hana Financial Group will beef up collaboration with local organizations to expand its customer base through continuous localization in China. In addition, the Hana Financial Group will generate high profits, discover niche markets, and create group synergies through the asset management business which the group began in 2017. Moreover, the group plans to build a comprehensive financial service platform that encompasses the banking and non-banking business in order to create synergies among the group’s affiliates through various forms of cooperation.

In Indonesia where sustained growth is expected, the bank of the Hana Financial Group is aiming at making the top 20 through M&As. This means that the group will execute a strategy to expand non-bank finance and realize step-by-step growth through various M&As and alliance. Furthermore, the Hana Financial Group plans to secure preemptive capabilities in the promising fintech segment.

In Vietnam, the Philippines and India among others, the Hana Financial Group is seeking to make a foray into the markets through M&As and collaboration with eminent local business partners. The group will enhance its business portfolio through advancement with non-banking financial institutions.

In India, local authorities are in the process of giving approval on the establishment of the Hana Financial Group’s Gurgaon branch. The establishment of the group’s corporation in Mexico was given preliminary approval so the corporation will be opened this year. The Hana Financial Group will be the second Korean financial institution to open its corporation in Mexico after Shinhan Bank.

KEB Hana Bank is the bank with the highest net profit among Korean banks. Last year, the lender posted net profit of 340.2 billion won in its overseas business, the highest among Korean banks. KEB Hana Bank had been slow in going global since its merger with KEB but would make a foray into newly emerging markets through M&As in accordance with a strategy of elevating the portion of its global business to 40% by 2025, a KEB Hana Bank official explained.