Suhyup Bank launches entity in Myanmar
Suhyup Bank has opened its first overseas subsidiary, announcing Tuesday the opening of a microfinance institution in Myanmar.
An opening event was held for Suhyup Micro Finance Myanmar in Naypyidaw, Monday. Suhyup Bank CEO Lee Dong-bin, Korean Ambassador to Myanmar Lee Sang-hwa, Myanmar’s Deputy Minister for Planning and Finance U Maung Maung Win and other officials attended the event held at the head office in Pyinmana. There are two additional branches.
The bank’s chief requested employees at the subsidiaries to make efforts to gain trust from local customers and to respect Myanmar’s laws and culture in conducting its operations.
Suhyup received approval on July 31 from Myanmar’s authorities to establish the subsidiary.
Myanmar is attracting foreign capital as its economy develops. It has been seeking to expand financial services and establish related infrastructure.
Meanwhile, the Korean government has been increasing its focus on the fast-developing Southeast Asian region, with many Korean financial firms entering countries there.
Data shows only 22 percent of Myanmar’s population aged 15 and above hold bank accounts. Low-interest microfinancing for individuals had mostly been unavailable.
The bank also has plans to expand its business to marine finance in the region.
“As Myanmar’s coastline is around 2,000 kilometers in length, after our local subsidiary gets settled, we plan to join hands with the National Federation of Fisheries Cooperatives to expand our business to coastal regions to transfer marine technology and provide loans in the sector,” a Suhyup Bank official said. “We are also reviewing plans to expand our global business to other countries in Southeast Asia including Cambodia and Indonesia.”
Suhyup Bank is a specialized bank founded by the National Federation of Fisheries Cooperatives, which was established in 1962 to develop the domestic fishing industry and villages. The bank provides funds for fisheries and is Korea’s only maritime industry bank.