À̹ÌÁö È®´ë The South Korean government has eased regulations to facilitate overseas outreach by domestic banks.
The Financial Services Commission said Wednesday that under a new administrative act, banks would not need to seek out a permission to open an outpost that requires 1 percent or less of the bank¡¯s net worth.
Previously, banks had to report to the financial authority to set up an overseas operation if the bank¡¯s BIS capital adequacy ratio is lower than 10 percent or if the host country¡¯s sovereign credit rating is at below B+.
Among the total 23 overseas branches set up by local banks between January 2014 and September 2016, 14 were subject to the prior notification obligation. Under the changed rule, only two would have had to report their new openings.
An official from the FSC said the revision would help facilitate overseas campaign for Korean lenders.
The country¡¯s four major commercial banks - Shinhan, KB Kookmin, KEB Hana and Woori - have been reinforcing their overseas operation. According to the Financial Supervisory Service, combined asset of offshore outposts run by local banks amounted to $104.9 billion last year, up 9.4 percent from the previous year. Total net profit rose 23.9 percent to $866 million over the same period.
By Lee Seung-yoon and Choi Mira
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]