SEOUL, KOREA - "We will expand the non-banking sectors to 30 percent. To that end, we will push ahead with the merger of an insurance company while nurturing an investment banking unit." Kim Jung-tai, chairman of Hana Financial Group, said this on January 10 in a conference to map out its vision by 2025.

 

 

 

The net profit for Hana Financial's non-banking sectors such as insurance, securities, and credit card in 2012 was 172 billion won, accounting for 11.4 percent of the total. The group plans to bring up that ratio to 28.1 percent by 2025. Kim acknowledged that there is not much room for that right now. Instead, his financial group would begin a mergers and acquisitions mode three years from now when the costly integration with Korea Exchange Bank will taper off.

 

Hana Financial will also engage in overseas expansion. "We are reviewing plans to acquire finance companies in Indonesia, Russia, and Eastern European countries. We are also mulling the idea of allying with local car dealers for auto financing. In countries such as Vietnam, the Philippines, Cambodia, and Myanmar, we will establish microfinance companies.

 

By 2025, the financial group will have more than 300 overseas offices from 127 offices in 24 countries worldwide, accounting for up to 40 percent in its total net profit.