Korea's DGB Financial Group mulling to open overseas base possibly in Singapore

DGB Financial Group, banking-to-securities financial service provider based in Daegu, southern part of South Korea, is setting up a global headquarters possibly in Singapore for global push.

The southern community-based financial group will separate its global operations from the corporate headquarters and relocate it outside Korea, according to financial industry sources on Tuesday.

The global operations office will oversee the group’s all international business activities including running overseas subsidiaries and administrating fund management, said a high-ranking DGB Financial Group official. Singapore is the likely location for overseas base.

DGB Financial Group’s overseas businesses are centered in Southeast Asia. It has banking and small business loan subsidiaries in Cambodia, Laos and Myanmar. The group raked in net profit of 12 billion won ($10.7 million) from its four overseas subsidiaries last year, accounting for 4 percent of the group’s total profit. It aims to generate 15 percent of total net profit from overseas operations within three years.

The group has set up the “second home” strategy under its global expansion initiative. As a start, Hi Investment & Securities, the group’s brokerage unit, is preparing to make an inroad into Vietnam. The group reportedly will also expand retail banking, small business loan, and other financial services in Southeast Asia.

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