Kookmin, KIE, and KDB... Accelerating Expansion into Myanmar (Comprehensive)

Approval of Establishment for Kukmin and Kieun Corporations
Pre-approval for Saneun Yangon Branch

[Asia Economy Reporter Kim Min-young] Domestic banks are successively entering the Myanmar financial market, which is called the post-Vietnam. Myanmar is considered an attractive market for domestic banks due to its weak infrastructure but high growth potential, making it one of the key countries in global strategies. Once the establishment approval is obtained, banks can open up to 10 branches locally in Myanmar and handle most of the tasks processed by local banks. Additionally, they can conduct transactions not only with foreign companies but also with local businesses.

According to the financial sector on the 10th, KB Kookmin Bank announced that it had obtained a preliminary banking license from the Central Bank of Myanmar on the same day. Kookmin Bank received a preliminary license for a local corporation and is expected to obtain the final official license after a nine-month preparation period. A Kookmin Bank official stated, “By acquiring the preliminary banking license in Myanmar, we plan to expand our business to include digital banking services for local customers, housing subscription processes, mortgage loans, corporate finance, and infrastructure finance.”

On the same day, Industrial Bank of Korea (IBK), which obtained a preliminary license for a local corporation, became the first case among overseas expansions to establish a local corporation without converting an office into a branch. An IBK official said, “By establishing a financial base before the full-scale increase of small and medium-sized enterprises entering Myanmar, we will actively support the local settlement and early stabilization of newly entering companies,” adding, “We will also contribute to revitalizing economic cooperation between the two countries by sharing the know-how of policy finance and SME finance accumulated over 59 years with local financial institutions and government agencies.”

KDB Industrial Bank also received a preliminary license to establish a Yangon branch on the same day. With this, KDB Industrial Bank can reopen a branch in the Indochina Peninsula for the first time in 22 years since withdrawing its Bangkok branch in Thailand during the 1998 International Monetary Fund (IMF) foreign exchange crisis. KDB Industrial Bank explained that it persuaded the Myanmar government with a differentiated strategy from other banks, overturned the initial disadvantage, and was able to receive a preliminary branch license on the first attempt.

Meanwhile, currently, about 300 Korean companies have entered Myanmar. A new “Korea-Myanmar Economic Cooperation Industrial Complex” capable of housing about 300 companies is being established near Yangon, the capital, so more Korean companies are expected to enter Myanmar in the future. The Central Bank of Myanmar is known to have granted preliminary licenses to seven banks out of 13 banks from five countries that applied for licenses in this foreign bank preliminary license competition.

This content was produced with the assistance of AI translation services.