South Korean lender KB Kookmin Bank is looking at putting up a branch in the Philippines after talks to acquire a stake in a local bank fell through.
Sources said KB Kookmin wanted to enter the local banking sector after initially bidding for a 20-percent share of Gotianun-led East West Bank in the middle of the year.
Reports in July said Goldman Sachs, which was the lead manager for East West’s sale, had selected three banks through a preliminary bidding in June.
Besides KB Kookmin, another South Korean lender, Shinhan Bank, and a small Japanese bank had expressed interest in East West, according to reports.
But as the deal did not push through, KB Kookmin would likely opt to establish its presence here via a local branch, with due diligence and preliminary discussions with the Bangko Sentral ng Pilipinas ongoing, sources said.
In case it secures the BSP’s approval, KB Kookmin would be the 12th foreign lender and fourth South Korean bank to enter the Philippine market under Republic Act No. 10641.
To date, the BSP has allowed 10 Asian banks to fully operate in the country, namely: Japan’s Sumitomo Mitsui Banking Corp.; Singapore’s United Overseas Bank Ltd.; South Korea’s Shinhan Bank, Industrial Bank of Korea, and Woori Bank; as well as Taiwan’s Cathay United Bank, Chang Hwa Bank, First Commercial Bank, Hua Nan Bank and Yuanta Commercial Bank Co. Ltd.
Malaysia’s CIMB Group, meanwhile, is being expected to secure the BSP’s approval to start banking operations in the country before the end of the year.