NH Nonghyup Bank will take over a Cambodian financial company and begin full-scale operation.
The Korean bank announced on August 22 that it received final approval from the Cambodian Central Bank and the Department of Commerce about the acquisition of SAMIC, a local microcredit company. NH Nonghyup Bank decided to change the company name into Nonghyup Finance Cambodia and hold the launch ceremony on September 11.
The corporation is a small lender with total assets of 18.5 billion won (US$15.4 million) and a total capital of 6.4 billion won (US$5.3 million). Headquartered in Phnom Penh, it has 18 networks centered on local small and medium cities. Nonghyup Finance Cambodia plans to expand its network based on three major cities: Phnom Penh, Sihanoukville, and Siem Reap. It will actively expand loans for real estate mortgages and loans for SMEs, as well as providing agriculture financing models such as installment financing for agricultural equipment in Cambodia, an agricultural country. An official of NH Nonghyup Bank explained, "We will find out the collaboration model with the local Ministry of Agriculture and will conduct a differentiated marketing strategy based on the bank’s know-how."
By completing the acquisition of the Cambodian company, NH Nonghyup Bank's overseas network has increased to six in total. In addition to its Cambodian subsidiary, it has one branch in New York and Hanoi respectively, a micro-loan corporation in Myanmar, and one office in Beijing and in New Delhi, respectively.
Lee Dae-hoon, president of NH Nonghyup Bank, is accelerating the expansion of the bank’s global network in the second half of this year. Lee will attend the opening ceremony of the local corporation in Cambodia next month and move to India to check the preparations for opening the first branch in India. NH Nonghyup Bank is also preparing to open an office in Ho Chi Minh, Vietnam, and to enter the Indonesian market. Next year, it will open the Noida branch and will apply for the authorization of banking business for its Hong Kong branch.