[Bank Southeast Asia Expansion Record] "Urisodara Bank Targets Chinese Tycoons... 99% of Employees Are Locals"

8 Years Ago, Acquired Woori Bank's Sodara
Expanded to 150 Stores, Established Localization
Operating Mainly Through Korean Diaspora Companies
Targeting Local Niches with Sodara
99% Local Staff

Korean banks have primarily expanded overseas into Southeast Asia. While there is little room to enter financially advanced developed countries, Southeast Asia offers great growth potential and a high level of favorability toward Korea. Employees dispatched locally are struggling through difficult lives abroad. We examine the current status of banks’ expansion into Southeast Asia and hear their stories of market pioneering. [Editor’s note]

Woori Bank stands out among Korean banks operating in Indonesia. In 2014, Woori Bank merged with the locally listed Sodara Bank and is expanding its influence by operating over 150 branches. Especially, Indonesia, with the world’s 4th largest population (270 million), offers high growth potential for Korean companies, making it possible for the financial sector to grow alongside them.

Hwang Gyusun, CEO of Woori Sodara Bank Indonesia, explained in an interview with Asia Economy on the 19th, “Most of our business is conducted around ‘Korean diaspora companies’ that have taken root and grown locally for over 30 years.” Woori Sodara Bank’s client base consists of about 55% corporate customers and 45% individual customers. CEO Hwang said, “We are growing mainly with Korean companies and conducting niche local business centered on Sodara.” Currently, 107 commercial banks fiercely compete in Indonesia, and Woori Sodara Bank is holding its ground around the 30th rank.

Hwang Gyusun, Head of Indonesia Uri Sodara Bank Corporation

Woori Sodara Bank is particularly well localized in Indonesia compared to other Korean banks. Except for KB Kookmin Bank, which acquired Bukopin, Woori Sodara Bank has the largest network among Korean banks with 150 branches. Notably, 99% of its 1,500 employees are local staff, with only nine Korean employees. Korean staff wear the local traditional attire ‘batik’ and conduct daily conversations and meetings in Indonesian, focusing on localization. Also, since Indonesia is an Islamic country, a prayer room was separately established for local employees.

Woori Sodara Bank is expanding its reach by leveraging the recognition of the Indonesian ‘Sodara’ brand, and the favorable atmosphere toward Korea, including K-pop, creates a synergistic effect. CEO Hwang said, “Because we acquired a reputable bank, the name Sodara is well known in most cities,” adding, “Moreover, the image has improved due to the influence of Korean dramas, and ‘Woori Sodara’ is doing well.”

Recently, Woori Sodara Bank has been focusing on attracting VIP customers by capitalizing on these advantages. CEO Hwang explained, “Because of our high recognition in Indonesia, many corporate executives and so-called ‘samonim’ (wives of wealthy men) conduct transactions with us,” and “We manage customers mainly through nine Korean staff.” According to CEO Hwang, Indonesians tend to be more reserved compared to other Southeast Asian countries like Vietnam. However, recently, the investment tendencies of the wealthy class have become more aggressive. Indonesia is also seeing a trend where the middle class is interested in stocks and real estate under the goal of ‘owning a home.’ Among the upper class in Indonesia, many are of Chinese descent. Some areas in Jakarta feel like China due to the concentration of wealthy Chinese. CEO Hwang said, “We plan to open private banker (PB) branches targeting them,” and “We are considering PB services for wealthy Chinese clients.”

Indonesia has moved beyond credit card payments to the ‘platform payment’ stage, so Woori Sodara is focusing on digital banking by linking with digital financial service platforms such as OVO and GoPay. At the same time, it is expanding offline branches. While Korea is reducing branch numbers and moving toward non-face-to-face services, in Indonesia, face-to-face business is still active. Woori Sodara Bank has set a new goal to become a top 20 bank in Indonesia. CEO Hwang expressed his ambition, saying, “We will become a leading bank in Indonesia, a competitive bank recognized by the Korean diaspora.”

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