KB Financial's 'glocalisation' strategy to focus on Southeast Asia

KB Financial Group chairman and CEO Yoon Jong-kyoo brought up 'glocalisation' as a key strategy for its global expansion at a recent town hall meeting with its employees in late June.

According to Kedglobal, the portmanteau of 'globalisation' and 'localisation' underlines the group's efforts to cater to local customers through customised products and services in overseas markets, utilising its financial technologies and infrastructure.

“If we pursue globalisation based only on our experience in South Korea, it will fail. We must build our competitive edge in each country,” Yoon said at the meeting.

Under the 'glocalisation' strategy, South Korea's largest banking group is targeting the digital banking market in Cambodia while focusing on traditional banking services in Vietnam.

The chief executives of Kookmin Bank, KB Securities Co., KB Insurance Co. and other subsidiaries participated in the gathering, together with 106 foreign employees of those companies from 14 countries where KB Financial Group operates.

The main topic of the four-hour meeting was how to strengthen KB Financial’s global businesses and the capabilities of its employees, as well as about enhancing its competitiveness.

According to Kedglobal, KB Financial has set its sights on Southeast Asia as the first step towards entering the global market.

In 2020, it acquired a majority stake in Indonesia's Bank Bukopin and then took full control of Cambodian lender PRASAC, the country’s largest microfinance institution, in 2021.

Those moves are in line with the group’s efforts to increase global operations to nearly 30 per cent of total revenue by 2030 and then to 40 per cent by 2040 at the latest.

“If there is a chance, we will aggressively pursue mergers and acquisitions in overseas markets,” Yoon said.

In Vietnam, KB Securities Vietnam, a subsidiary of KB Financial Group, is diligently establishing and expanding its operations in Vietnam's stock market.

Meanwhile, KB Bank Vietnam, another part of KB Financial Group, also operates in the country, with a particular emphasis on the foreign direct investment sector, providing banking services to international businesses.

Korean lenders aspiring to become major market players South Korean financial conglomerates are deepening their involvement in Vietnam through a series of strategic agreements in energy, banking system restructuring, and digital payments.

Samsung Vietnam teams up with Shinhan Bank Vietnam on digital payments In a landmark move, Samsung Vietnam and Shinhan Bank Vietnam have joined hands, etching an MoU to revolutionise the digital payment arena in Vietnam on June 14.

Shinhan Bank Vietnam organised “Bike Run” event to present bicycles and scholarships to students at SOS Children’s Village Vietnam, attended by the First Lady of the Republic Korea Shinhan Bank Vietnam (Shinhan Bank) organised the “Bike Run” event to present bicycles and scholarships to underprivileged students at SOS Children's Village Vietnam. The First Lady of the Republic of Korea, Kim Keon Hee attended the meaningful event. This is one of the First Lady's activities during the trip to accompany President of the Republic of Korea Yoon Suk Yeol on his state visit in Vietnam.

South Korean retailers extend reach South Korean companies are showing significant interest in Vietnam’s flourishing retail sector, seeking to seize opportunities presented by the nation’s robust economic growth and sizable working-age population.