NongHyup to gain toehold in southwest Asia with India branch
In-Hyeok Lee
May 30, 2022 (Gmt+09:00)
NongHyup Bank, a major arm of South Korea's National Agricultural Cooperative Federation, got the nod from India last week to open its first branch in India, which would serve as a springboard for its expansion in Southwest Asia.
NongHyup won final approval from the Reserve Bank of India to set up a branch in Noida, a satellite city to New Dehli, the Korean lender said on Monday.
It plans to begin its operation in the world's fifth-largest economy by nominal GDP next year.
"As a key hub in Southwest Asia, India has high growth potential with 1.3 billion consumers," NongHyup Bank Chief Executive Kwon Jun-hak said in a statement.
India has become an attractive destination for Korea’s big companies as well as startups eyeing overseas expansion, given the Asian country’s vast population and diverse markets offering rich opportunities for potential investors.
After the country lifted the ceiling for foreigners' stock investments last year, Mirae Asset Securities Co., a leading Korean brokerage firm, is preparing to launch a stock trading platform designed to allow South Korea's retail investors to directly buy and sell stocks listed on Indian bourses.
The direct stock trading platform, expected to launch later this year, will likely make South Korean individuals the first non-resident direct stock investors in India.
Write to In-Hyeok Lee at twopeople@hankyung.com
Yeonhee Kim edited this article