Barclays to close down Seoul operation
2017.10.16 13:35:12 2017.10.16 13:37:49
British banking group Barclays Bank PLC is officially pulling out of the South Korean market, marking as the fourth foreign financial company to shut down operations in Korea this year after suffering losses amid a protracted low-interest rate environment and tougher regulations.
According to financial industry sources on Sunday, Korea’s Financial Services Commission (FSC) on Friday gave the final nod to Barclay’s plan to close its Korean operation. The London-based lender had filed for a withdrawal request in August.
Barclays reportedly decided to depart Seoul after registering a net loss of nearly 50 billion won ($44 million) last year. Its office in Seoul already has closed down, forcing its former employees to seek for other jobs.
Barclays’ decision to withdraw from Korea has followed its fellow foreign banks that already closed their Korean operations amid growing losses due to the country’s financial authorities’ stricter regulations on derivative trading and a decline in large investment deals, said an unnamed financial industry official. The protracted low-interest rate environment has worsened the situation, the official added.
In June alone, three foreign banks, Goldman Sachs, Royal Bank of Scotland (RBS) and Banco Bilbao Vizcaya Argentaria (BBVA) shut down their operation in Korea upon the FSC’s final approval. Goldman Sachs has shut down its banking branches only while keeping its securities operation open.
The Korean unit of Goldman Sachs registered a net loss of 13.9 billion won last year, according to the FSC. RBS and BBVA also reported a net loss of 24.0 billion won and 7.8 billion won, respectively, during the same period.
According to financial industry sources on Sunday, Korea’s Financial Services Commission (FSC) on Friday gave the final nod to Barclay’s plan to close its Korean operation. The London-based lender had filed for a withdrawal request in August.
Barclays reportedly decided to depart Seoul after registering a net loss of nearly 50 billion won ($44 million) last year. Its office in Seoul already has closed down, forcing its former employees to seek for other jobs.
Barclays’ decision to withdraw from Korea has followed its fellow foreign banks that already closed their Korean operations amid growing losses due to the country’s financial authorities’ stricter regulations on derivative trading and a decline in large investment deals, said an unnamed financial industry official. The protracted low-interest rate environment has worsened the situation, the official added.
In June alone, three foreign banks, Goldman Sachs, Royal Bank of Scotland (RBS) and Banco Bilbao Vizcaya Argentaria (BBVA) shut down their operation in Korea upon the FSC’s final approval. Goldman Sachs has shut down its banking branches only while keeping its securities operation open.
The Korean unit of Goldman Sachs registered a net loss of 13.9 billion won last year, according to the FSC. RBS and BBVA also reported a net loss of 24.0 billion won and 7.8 billion won, respectively, during the same period.
By Chung Seung-hwan and Chung Seok-woo
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