NH Financial Group will work on strengthening its operation in the Asian region. It plans to explore the regional financial potential with stable growth to expand the financial territory of Korea. Chairman Kim Yong-hwan said the group will build a financial belt linking China, southeast Asia, and southwest Asia with a segregated core strategy unique to the group. NH Financial declared 2018 as the initial year for the ambitious global plan.
The group aims to rake in 100 billion won in revenue by 2022, around 10 percent of its total annual revenue under its five-year operational plan (2017-2022) to reap the results of the preparations made in the preceding five -year plan (2013-2017).
The financial group and its affiliates maintain operations in nine countries with either branches or rep. offices, including wholly-owned local subsidiaries.
They would like to further their overseas operations under the Global 2022 Project with the current overseas operational setup as a base. The group and its affiliates plan to take advantage of their accumulated experience in domestic operation, dedicated to the development of farms and farm towns.
Officials of the group said they plan to explore tie-ups with local financial groups to gain a toehold in other countries so they can come up with tailor-made a strategy for each of the places they aim to enter.
China became one of the target countries in which the group plans to launch a full operation. The group wants to embark on a joint venture partnership with the China Gongso Group, the largest cooperative group in the world.
The group has had no problems managing its operation in China on a sound level since taking over a stake in the loan and lease unit in China last year. In addition, the group is expected to finalize its investment in the small loan and lease firm Tientsin this year. The group also expected to take over small stakes in banks and insurance firms this year or set up joint ventures with local financial interests.
Nonghyup Financial Group Inc., South Korea¡¯s fourth-largest banking group by assets, is considering buying banks in Indonesia and Myanmar in a bid to expand its overseas business and diversify its portfolio, the group¡¯s chairman said recently.
Nonghyup Financial is the biggest state-run agricultural cooperative, whose stakeholders include farms and other agricultural businesses. It is expanding its business from commercial banking to brokerages, insurance and asset managing. Its flagship Nonghyup Bank ranks fourth in terms of assets after Woori Bank, Shinhan Bank and Kookmin Bank.
¡°We have a wide network involving farming, livestock and financial businesses in South Korea. We will try to develop these strong points and advance to the overseas market,¡± said Nonghyup Financial Chairman Kim Yong-hwan.
¡°In the second half, I will focus more on overseas expansion to help Nonghyup Financial diversify its business portfolio and strengthen non-interest income.¡±
He said the company is considering making equity investments in banks or leasing companies in Asian countries, or acquiring a managerial stake as the first step toward tapping into local financial markets.
It has formed a panel of leaders from its banking, insurance and brokerage affiliates to map out a plan for overseas investment. The panel is carrying out feasibility studies on its entry into the financial markets of Myanmar, Indonesia, Vietnam, China and Cambodia. Kim said banks in Indonesia and Myanmar are on the company¡¯s top wish list, but refused to disclose the names of target institutions.