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Standard Chartered Bank has emerged as a new leader in the Korean retail banking market after taking over Korea First Bank. Having renamed the acquisition SC First Bank, the London-based bank is making an all-out effort to strengthen its sales power armed with special high-interest account products. To counter SCB¡¯s effort, rival London-based bank HSBC is also preparing to expand its share in the Korean market and plans a board meeting in Seoul this week. SCB defeated HSBC¡¯s takeover bid for First Bank in January.
HSBC, the world¡¯s third largest bank in terms of market capitalization, has only eight branches in Korea. The board meeting under chairman John Bond comes against a background of failed takeover bids for Korean banks -- Seoul, KorAm, and First banks -- that suggests to some observers HSBC simply unlucky here.
There are heated rumors of a possible sale of Korea Exchange Bank and LG Card that HSBC could now try its luck with. Bond reportedly asked Financial Supervisory Service Governor Yoon Jeung-hyun for help with the bank¡¯s efforts to open more branches in Korea when the governor visited London earlier this month. Although Bond denies rumors that HSBC wants to buy KEB, saying he has no intention to try taking over a Korean bank again, insiders say if the price is right, he will.
SC First Bank president John Filmeridis is leading a strategy to localize the bank. SCB designated June 30 as Korea Day and celebrated it in its all offices in 56 nations. On the sales front, it introduced a savings product earlier this moth that offers a high 4.5 percent interest, sparking competition between local banks to offer higher saving interest rates after it attracted more than W700 billion (US$700 million) in the first 10 days after it was introduced. SCB also plans a leadership forum in Seoul from Oct. 3 to 5 bringing together some 250 SCB executives.
(englishnews@chosun.com )
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