Financial Globalization Forum "Consider Equity Investment Approach for Market Entry"

The Financial Services Commission announced on the 20th that it held the 'Financial Industry Globalization Expert Meeting' chaired by Vice Chairman Kim So-young at the Bankers' Hall in Jung-gu, Seoul.

Kim So-young, Vice Chairman of the Financial Services Commission, is delivering opening remarks at the 'Dialogue between the FSC 2030 Advisory Group and the Financial Sector' held on the 24th at the Seoul Jung-gu Community Financial Promotion Agency. Photo by Kang Jin-hyung aymsdream@

The meeting was attended by representatives from the four major financial holding companies, including Han Dong-hwan, Director of KB Management Research Institute; Jung Joong-ho, Director of Hana Financial Research Institute; Park Jung-hoon, Director of Woori Financial Research Institute; and Ryu Je-eun, Head of Shinhan Bank's Global Strategy Department, as well as private experts such as Professor Lee Young-seop of Seoul National University and Kim Yoon-joo, Partner at Boston Consulting Group (BCG).

Park Hae-sik, Senior Research Fellow at the Korea Institute of Finance, argued in his keynote presentation titled "Direction for Restructuring the Global Expansion Strategy of Domestic Financial Companies" that the overseas expansion strategy of domestic financial companies should shift from independent expansion to acquiring equity stakes in local financial companies.

Following this, Research Fellow Park stated, "For the expansion strategy to shift to acquiring equity stakes in local financial companies, active government support is necessary, including cooperation with local financial authorities and easing investment restrictions on domestic financial companies."

Partner Kim advised that domestic financial institutions currently have similar overseas expansion strategies and suggested that each company should establish a specialized growth approach. For example, targeting new regions such as the U.S., Europe, India, or Africa; adopting an 'Asset-Light' strategy through partnerships or minority equity acquisitions; and considering entry into fintech and non-financial sectors.

During the subsequent discussion, opinions were raised that internal controls should be strengthened and regulatory monitoring expanded to prevent risk transfer to domestic financial companies as overseas expansion increases.

Vice Chairman Kim said, "I deeply felt that for Korean financial companies to succeed in overseas markets, the competence and creativity of the private sector and the government's full support must be organically linked to work as a ‘One Team’," adding, "If the government and private sector communicate closely and the government provides available resources appropriately, it will be possible to accelerate the successful local establishment of financial companies."

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