SEOUL, April 13 (Yonhap) -- Shinhan Bank said Friday it plans to establish a wholly-owned commercial lender in Cambodia in an effort to tap the country's growing project financing market.
The flagship unit of Shinhan Financial Group said the envisioned bank will be set up in Phnom Penh, the capital, as early as September.
"Cambodia has high demand for project financing since there has been a social infrastructure construction boom in the Southeast Asian country," a bank official said.
Shinhan Bank also said it has applied for regulatory approval to set up its third branch in India. Currently, it has branches in Mumbai and New Delhi.
In addition, the bank said it is pushing to upgrade its Chinese branch to a wholly-owned lender.
Shinhan Bank's overseas push comes as its chief executive officer has recently stressed the importance of expanding overseas operations.
"Local banks need to look to overseas markets instead of competing with one another in the crowded domestic market," Shin Sang-hoon said at a ceremony marking the first anniversary of the bank's merger.
Shinhan Bank merged with Chohung Bank in April last year to become South Korea's third-largest lender.
Meanwhile, top lender Kookmin Bank said it plans to open branches in Ho Chi Minh City, Vietnam and Almaty, Kazakhstan as part of efforts to boost its overseas business.
No. 5 lender Korea Exchange Bank, controlled by U.S. Lone Star Funds, is also pushing to advance into Dubai, according to sources.
"Domestic banks' overseas expansion is aimed at finding new revenue sources in the highly competitive local market amid tighter rules on housing loans," a local bank official said.
sooyeon@yna.co.kr
The flagship unit of Shinhan Financial Group said the envisioned bank will be set up in Phnom Penh, the capital, as early as September.
"Cambodia has high demand for project financing since there has been a social infrastructure construction boom in the Southeast Asian country," a bank official said.
Shinhan Bank also said it has applied for regulatory approval to set up its third branch in India. Currently, it has branches in Mumbai and New Delhi.
In addition, the bank said it is pushing to upgrade its Chinese branch to a wholly-owned lender.
Shinhan Bank's overseas push comes as its chief executive officer has recently stressed the importance of expanding overseas operations.
"Local banks need to look to overseas markets instead of competing with one another in the crowded domestic market," Shin Sang-hoon said at a ceremony marking the first anniversary of the bank's merger.
Shinhan Bank merged with Chohung Bank in April last year to become South Korea's third-largest lender.
Meanwhile, top lender Kookmin Bank said it plans to open branches in Ho Chi Minh City, Vietnam and Almaty, Kazakhstan as part of efforts to boost its overseas business.
No. 5 lender Korea Exchange Bank, controlled by U.S. Lone Star Funds, is also pushing to advance into Dubai, according to sources.
"Domestic banks' overseas expansion is aimed at finding new revenue sources in the highly competitive local market amid tighter rules on housing loans," a local bank official said.
sooyeon@yna.co.kr
