ID :
66506
Fri, 06/19/2009 - 07:20
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Shortlink :
https://oananews.org//node/66506
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Standard Chartered reaffirms interest in insurance business in Korea
By Kim Soo-yeon
SEOUL, June 18 (Yonhap) -- The Korean banking unit of Standard Chartered Plc reiterated Thursday its interest in running an insurance business in South Korea after accepting approval to create a holding company.
South Korea's financial watchdog Financial Services Commission (FSC) gave
regulatory approval on Wednesday to SC First Bank Ltd. to create a financial
holding company, making it the first foreign lender to become a financial
services firm in Korea.
"It is an important step for us, but it is also, I think, an important step for
Korea. It is a good demonstration of the openness (of Korea)," David Edwards,
president of SC First Bank, told a press conference. The bank is seeking to
launch a holding firm by the end of this month with about 70 staff members.
There has been market speculation that SC First Bank is interested in buying
Kumho Life Insurance to beef up its business after creating a financial services
firm.
Edwards declined to confirm those suspicions, but said the bank would seek to
make inroads into insurance operations in due course.
The envisioned holding company would have five operations including the banking
and securities units under its wing, according to the FSC.
Currently, South Korea has five financial services companies, including Woori
Finance Holdings Co. Under a holding firm system, it is easier for financial
companies to seek further takeovers and to develop and sell a wide range of
financial products.
Standard Chartered said it will continue to invest in Asia and may seek for
possible takeover opportunities in the region for its strategic growth.
"We will look at acquisition opportunities to support our organic growth. But we
assess them very rigorously. They have to be both financially compelling and
strategically attractive enough to help us achieve all strategic objectives,"
Peter Sands, chief executive of Standard Chartered, told the press conference in
Seoul. He came here to attend the World Economic Forum on East Asia that began
earlier in the day for a two-day run.
Sands said the group may find potential acquisition opportunities across Asia and
the Middle East. "We will be looking at them."
Meanwhile, Sands added that the Asian economy, including South Korea, will likely
recover faster than other economies with undergoing a "shorter and shallow
correction."
The British banking group said the Korean economy is likely to grow 2.6 percent
next year after falling 2.5 percent in 2009. In 2011, Asia's fourth-largest
economy is projected to grow 4.1 percent, it added.
Standard Chartered Bank acquired Korea First Bank in April 2005 for 3.4 trillion
won (US$2.7 billion), the largest-ever takeover by the British banking giant, and
renamed it SC First Bank in September the same year.
SEOUL, June 18 (Yonhap) -- The Korean banking unit of Standard Chartered Plc reiterated Thursday its interest in running an insurance business in South Korea after accepting approval to create a holding company.
South Korea's financial watchdog Financial Services Commission (FSC) gave
regulatory approval on Wednesday to SC First Bank Ltd. to create a financial
holding company, making it the first foreign lender to become a financial
services firm in Korea.
"It is an important step for us, but it is also, I think, an important step for
Korea. It is a good demonstration of the openness (of Korea)," David Edwards,
president of SC First Bank, told a press conference. The bank is seeking to
launch a holding firm by the end of this month with about 70 staff members.
There has been market speculation that SC First Bank is interested in buying
Kumho Life Insurance to beef up its business after creating a financial services
firm.
Edwards declined to confirm those suspicions, but said the bank would seek to
make inroads into insurance operations in due course.
The envisioned holding company would have five operations including the banking
and securities units under its wing, according to the FSC.
Currently, South Korea has five financial services companies, including Woori
Finance Holdings Co. Under a holding firm system, it is easier for financial
companies to seek further takeovers and to develop and sell a wide range of
financial products.
Standard Chartered said it will continue to invest in Asia and may seek for
possible takeover opportunities in the region for its strategic growth.
"We will look at acquisition opportunities to support our organic growth. But we
assess them very rigorously. They have to be both financially compelling and
strategically attractive enough to help us achieve all strategic objectives,"
Peter Sands, chief executive of Standard Chartered, told the press conference in
Seoul. He came here to attend the World Economic Forum on East Asia that began
earlier in the day for a two-day run.
Sands said the group may find potential acquisition opportunities across Asia and
the Middle East. "We will be looking at them."
Meanwhile, Sands added that the Asian economy, including South Korea, will likely
recover faster than other economies with undergoing a "shorter and shallow
correction."
The British banking group said the Korean economy is likely to grow 2.6 percent
next year after falling 2.5 percent in 2009. In 2011, Asia's fourth-largest
economy is projected to grow 4.1 percent, it added.
Standard Chartered Bank acquired Korea First Bank in April 2005 for 3.4 trillion
won (US$2.7 billion), the largest-ever takeover by the British banking giant, and
renamed it SC First Bank in September the same year.
