KDB Industrial Bank Opens Yangon Branch in Myanmar

Securing a Business Base in Myanmar in Response to the Government's New Southern Policy
Expectations for Supporting Korean Companies' Entry into Myanmar and Participation in Local Infrastructure Projects

[Asia Economy Reporter Jo Gang-wook] The Korea Development Bank (KDB) announced on the 7th that it will open a Yangon branch in Myanmar on the 8th to actively respond to the government's New Southern Policy and expand its business base in the Southeast Asian region.

In April last year, KDB received preliminary approval for the branch in its first attempt, as the Myanmar government's economic departments highly evaluated its business strategy focused on regional development projects that could contribute to Myanmar's economic development and transfer development finance know-how.

Despite difficulties in preparing for the opening due to the Myanmar government's lockdown measures amid the COVID-19 pandemic, KDB formed a favorable public opinion by implementing social contribution plans such as providing quarantine supplies, and fulfilled the requirements for full approval, including securing business premises, establishing IT infrastructure, and depositing operating funds, successfully opening the branch as scheduled.

Myanmar possesses abundant natural resources and is a strategic hub connecting large consumer markets (China, India) and emerging economic zones (ASEAN). It is expected that Korean companies (currently over 200 companies including Lotte and CJ) will expand their presence and that the Myanmar government will have high demand for infrastructure development.

KDB plans to actively utilize its competitiveness in corporate finance and project finance (PF) in infrastructure finance to support Korean companies' entry into Myanmar and participation in local infrastructure expansion projects. It will also transfer its accumulated development finance know-how, such as risk management and SME support measures, to Myanmar's financial authorities, playing a role as a catalyst for mutual growth between Korea and Myanmar.

Based on its development finance expertise, KDB has previously achieved results through entrusted management of the Mongolian Development Bank (August 2011 to August 2015) and is currently promoting the transfer of development finance models to government banks in New Southern countries such as Vietnam.

Additionally, KDB has successfully completed the acquisition of a comprehensive financial company in Indonesia last year and the opening of the Yangon branch in Myanmar this time, demonstrating its will to find momentum for mutual growth in ASEAN member countries. This year, it plans to open a Hanoi branch in Vietnam to actively support the government's New Southern Policy and continue efforts to secure future growth engines for the bank.

A KDB official stated, "This reflects Chairman Lee Dong-geol's determination to foster overseas business as a future core growth business as a market-oriented policy finance institution, secure profitability, and strengthen domestic policy finance based on this."

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