South Korean Banks Focusing on Myanmar's Growth Potential

South Korean banks are focusing on Myanmar in that the country is close to both China and India and has huge growth potentials as a manufacturing base and a consumer market.

For example, KB Kookmin Bank and Industrial Bank of Korea (IBK) obtained preliminary banking licenses from the central bank of Myanmar on April 10. That day, Korea Development Bank (KDB) obtained an approval to set up branches. The final approvals of KB and IBK can be obtained after nine months of preparation. KDB Myanmar can handle both corporate finance and retail banking and can establish up to 10 branches.

Myanmar has a population of more than 52 million and their consumption is expected to increase a lot, which means a lot of retail banking opportunities for South Korean banks. The per-capita GDP of the country reached US$1,200 last year and is expected to top US$10,000 in 2023. Last year’s figure is significant in that large-scale durable goods consumption is regarded as starting at a per-capita GDP of US$1,000.
 

At present, approximately 300 South Korean companies are doing business in Myanmar. In addition, the Korea-Myanmar Economic Cooperation Industrial Complex, which is expected to house 300 companies, is currently under construction near the capital city of Yangon. South Korean banks’ role is expected to expand along with the business of those companies.