Fubon Expands into Banking Sector with New Office in Yeouido, Seoul
- seoultribune
- 2월 2일
- 3분 분량
Taiwan’s Largest Financial Group Eyes Retail Financial Market
Fubon Financial, Taiwan’s largest financial group, is set to actively pursue entry into Korea’s banking sector, marking a significant step forward after a decade in the Korean financial market. As an initial move, Fubon Bank will establish an office in Yeouido, Seoul, to conduct market research on Korea’s financial sector.
According to the financial industry on the January 30th, the Financial Services Commission (FSC) recently approved Fubon Bank’s application, submitted in December last year, for the establishment of an office. Following this approval, Fubon Bank plans to open the office in Yeouido and deploy up to five personnel. While the office will be responsible for market research and information gathering, it will not be permitted to conduct official business activities. An FSC official stated, "The principle is to process office establishment applications within 30 days of receipt. Fubon Bank’s application was submitted on December 9 last year and was approved on the 2nd of this month."
Fubon Financial Expands Presence in the Korean Market
Fubon Financial, Taiwan’s leading financial group with subsidiaries in banking, insurance, and securities, recorded a net profit of TWD 151.16 billion (approximately KRW 6.35 trillion) as of the end of last year. This figure surpasses the net profit of KB Financial Group (KRW 4.63 trillion in 2023). Fubon Financial’s total assets stood at approximately KRW 494 trillion as of the first half of last year.
Fubon Financial first entered the Korean financial market in 2015 when Fubon Life Insurance acquired a 48% stake in Hyundai Life Insurance (now Fubon Hyundai Life). In 2018, the company participated in a capital increase of KRW 300 billion, becoming the largest shareholder (83% stake) and renaming the company Fubon Hyundai Life.
Additionally, in 2019, Fubon Financial acquired a 4.0% stake in Woori Financial Group from Woori Bank and appointed a Fubon Financial representative as an outside director of Woori Financial Group. In 2022, Fubon Bank and Fubon Life Insurance each acquired a 9.99% stake from the 24.0% stake held by the Affinity Consortium, a financial investor in Hyundai Card, making Fubon one of Hyundai Card’s top three shareholders.
Entry into the Banking Sector: A Move Toward Retail Financial Services
Industry experts believe that Fubon Bank’s office establishment is a strategic step toward entering the retail financial market. A financial industry official stated, “It is highly likely that Fubon Bank will eventually convert its office into a bank branch and expand into retail financial services such as deposits and loans.”
Currently, foreign banks operating retail financial services, including deposit and loan offerings, in Korea include the Bank of China and the Industrial and Commercial Bank of China. Fubon Bank is expected to build its customer base among Taiwanese businesses and expatriates, gradually increasing its market share.
Future Outlook and Challenges
Fubon Financial is expected to strengthen its presence in Korea’s financial market by leveraging its existing investments and partnerships, particularly with Woori Financial Group and Hyundai Card. However, given the stringent regulatory requirements for foreign banks in Korea, converting its office into a full-fledged bank branch will depend on regulatory approvals and oversight from financial authorities.
A financial industry expert commented, “Fubon Financial has been steadily establishing a long-term presence in the Korean market through investments in insurance, credit cards, and financial holding companies. The establishment of this office is expected to mark the beginning of a full-scale banking expansion strategy in Korea.”
Meanwhile, Fubon Financial’s move could reshape the competitive landscape for foreign financial institutions in Korea and significantly impact the domestic banking industry.
Seoul tribune (c)
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