Deutsche Bank to inject 150m euro into Seoul branch

Korea cutting red tape on foreign exchange market led to Deutsche Bank's decision: FSS chief

Lee Bok-hyun (left), the governor of the Korean Financial Supervisory Service, and Deutsche Bank global management team head Ram Nayak pose for a photo after holding a meeting in the German bank's headquarters in Frankfurt on Friday. (FSS)

Deutsche Bank said Sunday that it will inject 150 million euros ($160 million) into its Seoul branch as part of its investment plan for the Asian market, with Korea as a strategic foothold.

The German bank's decision to allocate additional capital to its Korean business underscores its confidence in the stability and growth potential of the market.

"This additional capital, along with our recent reentry into the local debt capital market, will enable us to better support our clients' expansion plans in Korea and reinforce the successful platform that we have built over past decades," Deutsche Bank management board member Alexander von zur Muehlen said.

The capital injection plan was outlined at a meeting held in Frankfurt, Germany on Friday between Lee Bok-hyun, the governor of the Korean Financial Supervisory Service, and Deutsche Bank global management team head Ram Nayak, along with other executives.

"The investment reflects the expectation that the operating environment for global financial firms in Korea will improve as a result of government's efforts to relax foreign exchange market regulations, " Lee said.

Lee said the investment is expected to create new opportunities for the Deutsche Bank Seoul branch to expand its business operations in Korea and make a new leap forward.

Deutsche Bank, which entered Korea in 1978, provides diverse services to clients, including multinational companies, large local corporations and financial institutions.

Deutsche Bank Korea also recently reentered the Korean debt capital market, which enables the bank to support a wide range of Korean clients in accessing global debt markets.

"By strengthening and broadening our capabilities, we are well positioned to take our business to the next level and be the leading foreign bank in South Korea," Deutsche Bank Seoul branch manager Park Hyun-nam said.

Meanwhile, Lee's visit was part of his European tour spanning from Sept. 10 to 15 to champion the Korean financial industry while engaging in dialogue about global financial oversight.

Lee's itinerary included stops in Switzerland, the UK and Germany.

Kicking off his journey in Switzerland, he took part in a banking supervision meeting hosted by the Basel Committee on Banking Supervision, a global authority in financial oversight.

He also participated in the Group of Central Bank Governors and Heads of Supervision (GHOS) and the Heads of Supervision meetings. GHOS, the highest decision-making body within the BCBS, brought together 45 institutions from 28 countries to endorse strategic policy priorities in banking supervision.

After that, Gov. Lee made his way to London, where he engaged in an investment relations session as part of a collaborative effort involving the Seoul and Busan municipalities along with financial enterprises. This session aimed to showcase the potential of Korea's financial hub cities and the robustness of its financial sector.

Six major financial leaders from Korea who attended this promotion session include Shinhan Financial Group Chairman Jin Ok-dong, Woori Financial Group Chairman Yim Jong-yong, Mirae Asset Securities Chairman Choi Hyun-man, NH Investment & Securities CEO Jeong Young-chae, Samsung Life Insurance CEO Jeon Young-muk and Korean Re CEO Won Jong-gyu.

Also, throughout his tour Lee held one-on-one discussions with counterparts from various countries, including the top financial supervisory authorities from the UK and Indonesia.

Moreover, he had meetings with distinguished leaders from global financial institutions, among them Bruce Carnegie Brown, the chair of Lloyd's in London.

By Song Seung-hyun(ssh@heraldcorp.com)