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Daegu becomes the fifth Korean bank licensed to operate in Vietnam

Khanh Minh Thursday | 07/09/2020 09:34

South Korea-based Daegu Bank has received a certificate from the State Bank of Vietnam to open a branch in Ho Chi Minh City.

The bank which got approval from Vietnam’s central bank to open Ho Chi Minh City branch in late 2019 is expected to exploit the potential of Vietnam market.

In recent document released by the regulator, Daegu Bank also got approval to appoint Mr. Kim Jin Tae as the General Director of Daegu Bank - Ho Chi Minh City Branch.

Daegu Bank was established in 1967, headquartered in Daegu City, one of the 4 largest cities in South Korea, and it is the third largest metropolitan area in the country.

The lender’s main business activities include mobilizing, lending, foreign exchange, services and financial products, asset management services and internet banking

Currently, all of 4 Korea’s biggest banks - Shinhan Bank, KEB Hana, Kookmin, Woori Bank, have entered Vietnam. In particular, Shinhan and Woori established 100% foreign-owned banks, while KEB Hana in 2019 spent $860 million to own 15% of BIDV shares.

Vietnam market is considered attractive for Korean banks. In 2018, the total profit of four Korean banks operating in Vietnam, Shinhan, KB Kookmin, KEB Hana and Woori, grew 120% on-year, according to VietnamBiz.

As of June 2020, South Korea is the fifth largest investor in Vietnam with accumulated registered capital at $68 billion, according to Ministry of Planning and Investment.

Korean investment in Vietnam has expanded over the years with a rise of 37 percent each year, making Korea among the largest foreign investors in the country.

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