S Korean banks seek overseas expansion this year

In a bid to secure new growth engines, South Korean banks plan to increase their operations in overseas markets including opening of five branches in India this year, the financial watchdog said today.

Nine local lenders are projected to open 27 overseas branches throughout this year, with most of them focused in emerging markets such as China, Vietnam and India, said the Financial Supervisory Service (FSS).

The move comes on the heels of eased regulation, which permits  banks to report new overseas branches after establishment, the FSS said.

By country, six branches are slated to open in China and Vietnam each, followed by five in India, the FSS said. Banks also plan to launch offices in Indonesia, the United Arab Emirates and Brazil, it added.

The FSS said that overseas subsidiaries already in operation plan to add 31 new branches under their wings, including 23 in China.

South Korean banks had 129 overseas branches as of the end of September, according to the FSS.