Chairman Lee Dong-gull of Korea Development Bank (KDB). (Photos: KDB)

Korea Development Bank (KDB) is advancing its strategy to expand business in the Asian region. The move is designed not only to provide support to the government’s “New South Policy” initiative, but also to ramp up its growth engines in overseas markets in which the bank has a competitive edge.

KDB established the Asian headquarters in Singapore in late 2017 in accordance with the New South Policy initiative put forward by the government in the same year. The establishment of the Asian headquarters is aimed at not only expanding support to Korean companies which have entered other parts of Asia, but also strengthening its own networking in the region for its part.

Following the step, KDB raised the operating funds of the Singapore branch by $50 million last December and carried out $100 million in capital increase of an incorporated entity in Hong Kong in July. The two outlets are offering offshore financing to the whole of the Asian region, including India and Vietnam, by making the most of its role as a financial hub.

In February, KDB established a representative office in Jakarta to expand its presence in the financial market of Indonesia, a key country of the New South Policy initiative and a center of the Association of Southeast Asian Nations (ASEAN). ASEAN, an international body of Southeast Asia, established with the Bangkok Declaration on Aug. 8, 1967, has 10 member countries – the Philippines, Malaysia, Brunei, Vietnam, Laos, Myanmar, and Cambodia.

KDB plans to build a business network with a focus on New South Policy initiative countries in order to boost overseas operating profit in the years to come.

KDB’s global growth strategies focus on global wholesale financing such as syndication and project financing, differentiating itself from commercial banks that depend on retail financing.

KDB, based on accumulated knowhow related to development financing and networking with development financing institutions, is extending a helping hand to Korean companies wanting to finance overseas market entry. KDB is providing broader financing products to leading companies of emerging markets, such as Reliance Group.

Of late, KDB Chairman Lee Dong-gull toured London to explore strategies to ramp up its IB capabilities. London is one of the world’s two mega financial centers along with New York’s Wall Street. London is a district specializing in banking business it has accumulated over several centuries, since the inauguration of the Bank of England in 1694.

Notables, including Cho Seung-hyun, head of KDB’s Global Business Division, participate in a rendition of KDB’s market-type venture investment platform, called “KDB NextRound” at Shangri-La Hotel in Jakarta on Sept. 19.

KDB is expanding its business turf to the global stage through innovative growth of the 4th Industrial Revolution. KDB hosted its market-type venture investment platform, called “KDB NextRound” in Shenzhen, China in May 2018 and in Shanghai in June, respectively, to support investments in venture businesses. In September, KDB held a third rendition of KDB NextRound in Jakarta. KDB NextRound is a channel among KDB, startups, venture companies and investors.

KDB NextRound has regular IR meetings every week since its establishment in August 2016. Cumulative number of companies which participated in KDB’s IR sessions stood at 1,023, as of the end of August. KDB succeeded in attracting more than 1 trillion won from 190 participating companies.

In a recent meeting with reporters, KDB Chairman Lee, marking two years in office, stressed his determination to tap the global market. “KDB aims to raise half of its revenues from the international financial market by ramping up its overseas presence and the proceeds need to be utilized into domestic policy funds,” he said.