NongHyup opens first European branch, Shinhan boosts derivatives, Woori builds trading hub
Brokers work on the trading floor at BGC Group in London, Thursday. (AP Photo-Yonhap) South Korea’s top banks are stepping up efforts to strengthen their presence in London, aiming to leverage the city’s strategic position to reach relatively untapped markets across Europe, the Middle East and Africa, also known as the EMEA region.
Although London’s future as a global financial hub was questioned after Brexit, local banks are betting big on the opportunities offered by its geographic and strategic advantages.
Earlier this month, NongHyup Bank announced the opening of its London branch, following regulatory approval in July. The branch marks the bank’s first outlet in the European market.
Through the London outpost, NongHyup Bank plans to establish a foothold for expanding its global investment banking business in the EMEA region.
“The London branch will serve as a strategic hub to expand global investment banking, bonds, and environmental, social and governance finance, acting as a bridge to the European market. We will also establish stable systems and infrastructure for sustainable growth,” an official from the lender said.
On a similar note, Shinhan Bank has been keen to expand its operations in London in recent months.
In August, the bank announced that its London branch had obtained a license to sell derivatives, enhancing its operational capabilities. A month before, the lender relocated its London branch and signed a strategic partnership agreement with the Africa Finance Corporation. Earlier in the year, a Global Capital Markets Desk was launched at the branch.
“London is an international hub of finance, a city that integrates finance with innovation. Shinhan Bank’s London branch plays a pivotal role as a hub to foster global competitiveness,” a Shinhan Bank official said.
“The bank plans to facilitate Korean companies’ access to African markets through practical frameworks in key areas such as energy, transportation, digital infrastructure and industrial development. It aims to serve as a bridge between Korean businesses and Africa by expanding opportunities for infrastructure investment and project financing.”
Other local lenders, including KB Kookmin Bank, Hana Bank and Woori Bank operate branches in London as well, focusing on corporate lending, investment banking, securities and foreign exchange.
Woori Bank is also set to establish a London Trading Center in the second half of this year, expanding its existing London FX Desk, which was only set up in July 2024.
The move also aligns with the Korean government’s approach to expanding its foreign exchange market.
Last year, the authorities here extended foreign exchange trading hours to 2 a.m., allowing the market to run during hours when the London financial market is open. They even dispatched personnel to London to enable real-time monitoring.
As part of efforts to strengthen their presence in London, the top executives of Korea’s leading banks visited their respective branches in the city this year.
KB Kookmin Bank CEO Lee Hwan-ju, Hana Bank CEO Lee Ho-sung and Woori Bank CEO Jung Jin-wan made a trip to their London branches following the annual meeting of the Asian Development Bank held in Milan in May.
More recently, Shinhan Bank CEO Jung Sang-hyuk and NongHyup Bank CEO Kang Tae-young also visited their respective London branches, spearheading initiatives to strengthen the banks’ presence and enhance global business operations.
silverstar@heraldcorp.com