DGB rebrands as Korea’s first commercial bank in 32 years

[Courtesy of DGB Daegu Bank]

South Korea has opened its first commercial bank in 32 years. DGB Daegu Bank, originally established in 1967 as the first regional bank, received approval from financial authorities to take its first step as a commercial bank after 57 years. The last commercial bank established in Korea before DGB Daegu Bank was the former Peace Bank of Korea, which was established in 1992.

The Financial Services Commission approved Daegu Bank‘s conversion to a commercial bank at its regular meeting on Thursday. Approval in hand, the bank plans to create a “digital-centric hybrid bank that offers both offline and non-face-to-face services,” DGB Financial Group Chairman Hwang Byung-woo said in a phone interview with Maeil Business Newspaper on the same day.

Meanwhile, Woori Financial Group is targeting the Southeast Asian market, including India, via a partnership with Indian conglomerate Tata Motors Ltd.

Woori Financial Group Chairman Yim Jong-yong met with Girish Wagh, executive director of Tata Motors and head of Tata Daewoo Commercial Vehicle Co., in Seoul on Thursday, where the duo signed a memorandum of understanding for mutual cooperation.

The move is part of a transition in the group’s overseas market strategy, which is expanding from its previous focus on the banking sector to include Woori Financial Capital Co. and other group members. As Woori Bank and Woori Financial Capital already have networks in key Southeast Asian hubs, they will provide financial support and product development as Tata Motors conducts its business.

“This cooperation between Woori Financial and Tata Motors will be a significant opportunity for both companies to expand into the global market,” Yim said.