Chiefs of major South Korean commercial banks will join President Moon Jae-in as part of his economic delegation on the Myanmar leg of his trip to three Southeast Asian countries next week, sources said Wednesday.

Heads of commercial banks here, Shinhan’s Jin Ok-dong, KB Kookmin’s Hur Yin and Industrial Bank of Korea Chairman Kim Do-jin, will accompany Moon on his visit to Myanmar scheduled for Sept. 3-5, spokespersons for the firms confirmed to The Korea Herald. Moon’s entire trip, which also includes visits to Thailand and Laos, is slated to take place from Sunday to Sept. 6.

 

Of the four top commercial lenders here, Hana Bank was unable to confirm whether its CEO would go on the trip, while Woori Bank could not be reached for comment.

Korea Federation of Banks Chairman Kim Tae-young and deputy president of the state-run Korea Export-Import Bank, Kang Seung-joong, will also join the delegation, according to sources. The KFB chairman will only accompany the delegation to Myanmar and Thailand to meet with his counterparts, according to his spokesperson.

Members of the Association of Southeast Asian Nations have been emerging as attractive yet complicated markets for Korean banks in recent years, as local firms have been making aggressive forays, increasing demand for corporate financing.

As reflected in the choice of the CEOs, Myanmar is expected to be a key market for the commercial bank chiefs to focus on business expansion.

At the moment, KB Kookmin, Woori and Hana either have a subsidiary or an overseas office in Myanmar, while Shinhan is the only Korean bank operating a branch there. IBK and Eximbank also operate offices in the country.

KB Kookmin and IBK have openly expressed interest in expanding their services in Myanmar, with both reportedly seeking to launch branches.

Myanmar opened the door to foreign lenders in 2011 as part of government-led wide-ranging reforms. But the business of lenders has been largely restricted to loan services for foreign entities in foreign currencies.

Sources said the Myanmar government is seeking to hand out licenses to foreign banks for the establishment of branches by the end of the year. These were previously granted through two separate rounds in 2014 and 2016. Shinhan was granted the license in 2016.

Cheong Wa Dae and the financial institutions have yet to officially confirm the officials’ participation in the upcoming trip and release details of their itineraries.

Seoul is making efforts to bolster ties with ASEAN member states as part of a key diplomatic initiative by President Moon.

By Jung Min-kyung (mkjung@heraldcorp.com)