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Monday, 8 June 2015

KorEconomics 101 (한국경제학개론), Part V: Hana Bank - A Bank that covers not only for Seoul and Chungcheong Provinces; it covers nationwide.


Hana Financial Group (Abbreviation: HFG; Hangul/Romanization: 하나금융그룹/Hana Geum-yung Group) is one of the largest bank holding companies in Korea. The headquarters of this office is located at 55 Eulji Avenue, Euljiro 2-ga 9-10 beonji, Seoul Jung-gu. The company was established in 1971 as Korea Investment & Finance (한국투자금융/Hankook Tuja Geum-yung), the nation’s first financial company established, financed solely by private fund. 'Hana' is a word in Archaic Korean meaning "one" or "unity", and Hana Financial Group's symbol, "ㅎ/Hieut" - the last Hangul letter in Jamo order, represents the first consonant of 'Hana or '하나' in Korean.

Hana Bank (Hanja/Romanization: 하나銀行/Hana Eunhaeng) was founded in 1959 as Seoul Bank (서울은행). The bank which is the subsidiary of HFG, was converted into a commercial bank in 1991. Hana Bank went through P&A with Chungchong Bank (충청은행) and M&A with Boram Bank (보람은행) in 1998, and acquired Seoul Bank in 2002. Then it continued its expansion by acquiring Daehan Investment and Securities, Korea’s second-largest asset management company, in May 2005. The most recent expansion was made in 2012, when it decided to purchase Korea Exchange Bank.

Hana Financial Group is in charge of setting up group-level business strategies and providing management resources to subsidiaries, including Hana Bank, Korea Exchange Bank, Hana Daetoo Securities, Hana SK Card, Hana Life Insurance, Hana Capital, Hana Asset Trust, Hana I&S, Hana Institute of Finance, and Hana Savings Bank.

Hana Bank established a program called the Hana Overseas Club in 1994 as a means to provide financial services to Korean expatriates living abroad, including those living in Canada, Australia, New Zealand and the United States etc. Through the Hana Overseas Club, Hana Bank managed the Korean financial assets of its overseas customers. Hana Bank launched an advertising campaign for the Hana Overseas Club in July 1994, running advertisements in the Korea Times in Los Angeles, New York and other major cities.

As of 2014 the Group’s strategies for global expansion have been focused on East Asia, China in particular. In 2007 the Hana Financial Group established a subsidiary in China, Hana Bank China, which came to have 13 branches in the world’s most populous market. In 2009 Hana Bank China was licensed to perform transactions involving China’s currency, the remnimbi, and debit card transactions. A year later, the Hana Financial Group acquired an 18.44% stake in the Bank of Jilin Co. Ltd. In January, 2011 the group entered into a strategic alliance with the China Merchants Bank, which has large potential for growth in China and a credit card and retail banking business in local markets.

The Group has a significant presence in Indonesia. The Group operated 18 branches through Perseroan Terbatas Bank Hana, a local subsidiary in Indonesia set up by the Hana Financial Group in 2007. The Group hires most of the employees for its overseas operations from local communities. For instance, of the 255 employees at the Group’s Indonesian subsidiary, 98% are Indonesians, including three of the five members of the Board of Directors. In March 2014, the group decided to integrate PT Bank Hana and PT KEB Bank, to establish PT Bank KEB Hana, the first integrated entity within the Group. The newly established entity now owns 40 branches with 571 employees.