Close on the heels of the ChinaTrust Commercial Bank in Delhi and the Chohung Bank in Mumbai, another Korean commercial bank, the Hanil Bank, recently kicked off its India operations. With total assets of over US $60 billion in the last fiscal year, Korea's oldest privatised bank also enjoys the distinction of being that country's largest bank. Chuckles Dong Hyuck Shin, director and deputy president of the Bank, We have good experience at being number one "" I am sure we will be number one in India as well.
But ask him about the challenges that lie ahead in India, and he turns serious: In most markets, banks are engaged in wholesale banking. But in India, bank-to-bank dealings are insignificant compared to dealings between banks and the corporate sector. For now, he says, the Hanil Bank will focus on corporate banking which is time saving, labour saving, and at the same time makes good money.
With old-faithful Korean clients such as Samsung, Daewoo, Hyundai and LG Electronics already in India, Shin has reason enough to feel upbeat. I will approach the Korean corporations, and say "" 'Hello! Come to my bank. This place is for you'. But what about competition from rival Korean banks in India? I am concerned about our market share, but I am more interested in the total market size. And if we can all cooperate to make the market big enough, no one has to worry about competition, he declares.
Shin started his career at the Hanil Bank in 1964 after graduating from Seoul National University, and although he may have spent more years working at the bank's domestic branches, his self confessed forte is international banking. It is a happy coincidence that the Bank is expanding its worldwide operations at a time when I am the second in command, he beams. But given Shin's track record in overseas forays "" which includes mountain climbing in the Alps and the Himalayas "" this may be more than just a coincidence.