KB duplicates its success in global markets

KB Kookmin Bank, one of the country’s leading lenders, is striving to duplicate its notable success here in the global market through briskly tapping into lucrative businesses across the world.

Such efforts have started to bear fruit and the most recent example is its work of jointly arranging a 750 billion won ($660 million) project financing deal for a power plant in the United States.

Earlier this month, the Seoul-based lender said that it joined forces with global banks Mitsubishi and ING Bank to finance the 790 megawatt gas-fired power plant construction.

They attracted investors who purchased senior debt worth $660 million and of that amount, KB Kookmin arranged $200 million that is composed of a direct investment of $50 million and $150 million from other Korean firms.

In overseas project financing in which Korean constructors are not directly involved, domestic financial firms have played limited roles. But the recent feats showcase KB’s capacity, according to experts.

In retail banking, KB Kookmin has also been a pioneer in making a foray into offshore markets. As of the end of last year, it had 12 subsidiaries, branches and offices outside the country.

One of its latest initiatives in the overseas retail market took place in Cambodia where KB Kookmin opened a mobile-oriented bank, Liiv KB Cambodia, this September.

The digital bank offers various services such as account transfers, cross-border remittances and mobile payment services as well as various non-banking features like letting people top up their handsets.

A KB Kookmin official said that the new-concept bank has been accepted well and for further growth momentum, it plans to enable its customers to withdraw money at automatic teller machines by forming business alliances with Cambodia’s top-tier banks.

Observers point out that many successful firms tend to forget about management principles such as putting existing customers first and respecting business ethics but KB Kookmin appears to be different.

Its CEO Yoon Jong-kyoo has stressed globalization to secure new cash cows for the lender, but at the same time he reiterates that the bank should stick to principles.

“In an effort to become the most respected bank in the nation and to solidify its role as the leader of the Korean financial services industry, KB Kookmin Bank is committed to paying close attention to every one of our customers while providing the best customer-oriented services,” Yoon said.

“Upholding high moral standards and work ethics as bankers, KB Kookmin Bank’s entire staff and management will keep striving to fulfill our responsibilities to our customers and society, making it the most dependable and socially responsible bank.”