South Korea-based Woori Bank, a part of the Woori Financial Group, has launched its first branch in India, at Chennai, to provide assistance to Korean companies in the country in corporate banking and to serve local clients. The Chennai branch would be the head office of Woori Bank in India.
The bank, which is the second largest commercial bank in South Korea with its focus on corporate banking, has received in-principle approval from the Reserve Bank of India in June, 2011, to set up its branch in India. It has already infused around $35 million in India, said a senior executive from Woori Bank.
“Woori Bank is strong in corporate banking sector. We will provide assistance to corporate banking with focus on Korean companies which are already present in India,” said Soon Woo Lee, president and CEO, Woori Bank. He added that the company would also focus on localising the business and offering new products, to serve local clients.
Korean business conglomerates like Samsung, LG and Hyundai are already present in India. Further, companies like Doosan Group and Mando Corporation have also entered into India recently. The bank expects to work with some of these companies in the infrastructure projects for the government.
Once the bank sees break-even and revenue coming in from the Indian business, it would invest further in the country. It has so far infused a capital of $35 million in India, said Moo Soo Kim, chief executive officer of the Woori Bank Chennai Branch. The company selected Chennai for its first branch and headquarters, since there are a large number of Korean companies operational in Tamil Nadu, said the company officials.
Earlier, the bank had received approval to open its branch in India in May 2007, though it was delayed due to the financial crisis immediately followed in the year 2008. It later received an in-principle approval from the RBI to start its branch in India, in 2011, which resulted in the opening of the branch in Chennai now. It has conducted the due deligence to enter India way back in 1997, but had not proceed further due to the crisis in Korea in 1998, said Lee.
Woori Bank, headquartered in Seoul, is the second bank from South Korea to enter Indian market. Sinhan Bank, a part of Sinhan Financial Group, has set up its first branch in Mumbai in 1996, and has two more branches, one in New Delhi and another one in Vellore district, Tamil Nadu.
