Targeting New Markets in Latin America
KEB Hana Bank said on May 27 that its subsidiary incorporated in Mexico was inaugurated on May 24.
Mexico is a strategically important market to South Korean companies because the country serves as a gateway to North America thanks to the North America Free Trade Agreement (NAFTA) and the United States-Mexico-Canada Agreement (USMCA). It is home to the manufacturing bases of many South Korean companies, especially in the auto, steel and electronics sectors.
KEB Hana Bank said its Mexican entity would cater to both South Korean companies and Mexican businesses by offering localized services.
It also intends to broaden its global outreach to generate new revenue streams by tapping not only into the rapidly emerging markets of Southeast Asia, a region facing heavy competition from other local lenders, but targeting new markets in Latin America. It has recently started operations in Panama and Brazil.
“Our Mexican entity would offer professional financial services to bolster economic cooperation between the two countries and further develop the financial sector,” said Ji Sung-kyoo, chief executive of KEB Hana Bank, at the opening ceremony on May 24.
Meanwhile, KEB Hana Bank has 180 foreign outposts across 24 countries. This year, it plans to upgrade its liaison office in Fukuoka, Japan, to a legal entity, set up an outpost in Gurugram, India, and expand operations in Myanmar. It is also mulling entry into Taiwan and Morocco as part of its global campaign to broaden its market presence to six continents in the next three years.