South Korea-based Woori Bank, a part of Woori Financial Group, has launched its first branch in India at Chennai, which would be the head office.
The bank, the second largest commercial bank in South Korea with focus on corporate banking, received in principle approval from the Reserve Bank of India in June 2011 to set up the branch in India. It has infused around $35 million in India, said a senior executive of Woori Bank.
"Woori Bank is strong in corporate banking sector," said Soon Woo Lee, president and CEO.
"We will assist in corporate banking with focus on Korean companies that are already present in India."
The company would also focus on localising the business and offering new products to serve local clients, he added.
Korean business conglomerates Samsung, LG and Hyundai are present in India. Further, Doosan Group and Mando Corporation entered India recently. The bank expects to work with some of these companies in the infrastructure space.
Once the bank breaks even and revenues come in from Indian business, it would invest further. Woori Bank has infused $35 million as capital in India, said Moo Soo Kim, chief executive officer of Woori Bank Chennai branch. The company selected Chennai for its first branch and headquarters as there are around 450 Korean companies operational in Tamil Nadu, said the company officials.
Woori Bank had conducted a due diligence to enter India in 1997, but had not proceed with plans due to the crisis in Korea in 1998, said Lee.
Woori Bank, headquartered in Seol, is the second bank from South Korea to enter Indian market. Sinhan Bank, a part of Sinhan Financial Group, set up its first branch in Mumbai in 1996, and has branches in New Delhi and in Vellore district, Tamil Nadu.
