DGB Financial Group, a Korean financial holding company, said it plans to establish an asset management company in Singapore.

The company recently submitted an application to the Monetary Authority of Singapore seeking a license to operate as a registered fund management company.

"Our primary focus for now is securing the approval as Singapore financial authorities have tightened their approval processes due to the substantial influx of Hong Kong funds into the country," a DGB Financial Group official said.

If it secures approval as planned, the company is poised to commence operations as early as the year's end, according to industry sources. This will become DGB Financial Group's first overseas asset management unit.

Singapore's asset management sector adheres to a three-tier licensing framework of registered fund management companies, capital markets services licenses for accredited investors and capital markets services licenses for retail.

It is mandatory for fund management companies to obtain a registered fund management company license before pursuing the other two tiers.

The business expansion into Singapore is seen by industry insiders as a pivotal step for DGB Financial Group's broader strategy to bolster its presence in Southeast Asia.

The company already operates branches and local units across Southeast Asia, including in Vietnam, Cambodia, Myanmar and Laos.

Currently, DGB Group's global operations contribute approximately 4 percent to its net profit.

DGB Financial Group appointed Choi Young-wook, the former head of Midas Asset Management Singapore, to spearhead the financial group's corporation in Singapore.

After obtaining the license, this entity will transform into the asset management unit.

Choi, with prior experience at Daewoo Securities' Hong Kong office, is an expert in managing hedge funds using a long-short strategy.

Meanwhile, DGB Financial Group subsidiary Daegu Bank is actively pursuing plans to further extend its footprint within Korea.

The bank is working on obtaining approval to transition into a nationwide commercial bank.

Financial Services Commission Vice Chairman Kim So-young expressed optimism in July, stating that he anticipates Daegu Bank will secure the necessary license before the year's end.

If successful, this would make Daegu Bank the first new nationwide commercial bank in Korea since the establishment of Peace Bank, now known as Woori Bank, in 1992.