Financial firms' overseas branches log solid profits in 2018

SEOUL, May 23 (Yonhap) -- The combined net profits of overseas branches of South Korean financial firms rose 37 percent on-year to US$1.2 billion last year, data showed Thursday. Korean financial firms operated a total of 437 branches in 43 countries as of the end of last year, up six from a year ago, according to the data by the Financial Supervisory Service (FSS). "The financial companies sought to diversify business structures in the U.S., China and Hong Kong where they already had subsidiaries or offices while continuously making efforts to increase assets under management and build a new engine for growth in ASEAN countries, such as Vietnam and Indonesia," the FSS said in a statement. Their total foreign assets stood at $179 billion as of the end of 2018, up 14 percent from a year earlier, the data showed. "The year-on-year growth was mainly because domestic financial companies have expanded their global businesses to create new revenue streams," the FSS said. Relative to the size of the foreign assets, their profitability is still low, the FSS said. kdh@yna.co.kr (END)