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Korean Bank Opens Third Mainland Branch

Industrial Bank of Korea (IBK), specializing in lending to small and medium-sized firms, yesterday opened a branch in Shenyang, capital of Northeast China's Liaoning Province.

 

The branch will focus on deposit and loan services and provide assistance to South Korean firms investing in China. But staff say a renminbi service will not be available at present.

 

Kang Kwon Seok, president of IBK, is optimistic about the future of the branch.

 

"With more and more South Korea companies coming to China, financial institutions would find more chances and play a bigger role here," he said.

 

IBK also has a branch in Tianjin and one in East China's Qingdao.

 

The bank believes it has identified a niche for itself - promoting Sino-Republic of Korea trade, which reached a record US$90 billion last year, according to statistics from the Ministry of Commerce (MOFCOM). China has become South Korea's No 1 trade partner.

 

China had ratified 34,700 projects in connection with the Republic of Korea by the end of April, involving total investment of US$27.7 billion, according to MOFCOM.

 

Northeast China is naturally at a geographical advantage as it strives to attract Korean firms, and has become a key industrial base in recent years.

 

There are more than 700 Republic of Korea-funded companies and more than 10,000 Koreans based in Shenyang.

 

Wang Ying, vice-mayor of Shenyang, said the past few years have seen great changes, including the quick development of ties between the two countries.

 

"There are many chances here in Shenyang and I believe IBK will help more South Korea companies succeed," said Wang.

 

(China Daily June 29, 2005)

 

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