Korea's Woori Bank said Thursday it has forged a partnership agreement with AmBank Group, Malaysia’s largest banking group, to expand financial support for Korean and Malaysian companies entering each other’s markets.
Under the memorandum of understanding signed in Kuala Lumpur on Wednesday, the two banks will cooperate on advisory and financing services, assist companies in opening local accounts, conduct joint marketing, and build a coordinated support system for firms seeking to establish operations abroad.
Malaysia is home to more than 400 Korean businesses and is considered a key manufacturing and logistics base in Southeast Asia.
Woori Bank said the agreement is expected to strengthen its regional network, coming on the heels of the Korea-Malaysia summit last month.
“Korea and Malaysia’s business exchanges are accelerating following the conclusion of the bilateral free trade agreement,” said Yeo Seung-bae, South Korea’s ambassador to Malaysia.
“This partnership will be particularly meaningful for Korean companies that have faced difficulties due to the limited presence of Korean financial institutions in the local market.”
A Woori Bank official added that the deal is aimed at creating “a more stable financial environment” for companies from both countries. “We expect this to serve as a new model for private-sector financial cooperation in line with the FTA,” the official said.
Malaysia is South Korea’s third-largest trading partner and fourth-largest investment destination within ASEAN.
Seoul has steadily expanded market access through the Korea-ASEAN FTA, effective since 2007, and the Regional Comprehensive Economic Partnership that took effect in 2022.
While those agreements opened sectors ranging from machinery and home appliances to cosmetics, pharmaceuticals and processed foods, access remained more limited for core exports such as automobiles and steel.
The Korea-Malaysia FTA concluded in October is set to further deepen economic ties. Under the pact, Korea will liberalize 94.8 percent of tariff lines and Malaysia will liberalize 92.7 percent, significantly broadening bilateral trade opportunities.
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