New York Mellon Bank to Significantly Scale Down Operations in Korea

[Asia Economy Reporter Kim Jin-ho] The Bank of New York Mellon, the oldest bank in the United States and a global custodian bank, is significantly downsizing its business in Korea.

According to the financial sector on the 12th, the Financial Services Commission recently held its 22nd meeting and approved the closure of the financial investment business of the Bank of New York Mellon Seoul branch. Foreign banks must obtain approval from authorities to close domestic branches or reduce business operations.

The Bank of New York Mellon operates in 35 countries across the United States, Europe, the Middle East, Asia, Africa, and the Asia-Pacific region. Its Asia-Pacific regional headquarters is located in Hong Kong, primarily engaged in investment and investment brokerage, investment management, asset management, and financial consulting.

In Korea, it established the Seoul branch in 1988 and has been conducting general fund and business loan operations.

Recently, foreign financial firms have been exiting the Korean market, such as the U.S.-based Citibank announcing in October a phased withdrawal from the consumer finance business. Strict regulations, lack of labor market flexibility, and tax burdens are cited as reasons for foreign financial firms leaving the Korean market.

Canada’s third-largest bank, Nova Scotia Bank, also closed its Seoul branch in October. After establishing the Seoul branch in 1978 and focusing on corporate finance, Nova Scotia Bank withdrew from Korea due to its headquarters’ global strategy restructuring.

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