Seoul-based NongHyup Bank said Wednesday it gained regulatory approval Friday for operation of the Cambodian microfinance institution Samic that Nonghyup acquired in July.

The Phnom Penh-based institution has been renamed NongHyup Finance Cambodia, following approval of the acquisition by the Cambodian Ministry of Commerce and National Bank of Cambodia. In July, the NBC greenlighted NongHyup Bank’s takeover of 100 percent of shares of Samic.

It will begin operation in late August, according to the Korean agricultural bank wholly owned by Korea’s National Agricultural Cooperative Federation.

This marked the Korean banking firm’s first overseas takeover and its sixth overseas business entity. Prior to the deal, the company had offices in Beijing and New Delhi, branches in New York and Hanoi, Vietnam, as well as a microfinancing institution in Myanmar.

The financing institution plans to begin extending mortgage loans and loans for small and medium enterprises in Cambodia, in addition to microfinance products in Samic. NongHyup Bank also seeks to expand its branch network in urban areas in the Sihanoukville and Siem Reap provinces, as well as the capital city of Phnom Penh.

By Son Ji-hyoung
(consnow@heraldcorp.com)