South Korea’s DGB Daegu Bank said it received a licence from the National Bank of Cambodia (NBC) to transform its specialised banking unit in the Kingdom into a full-fledged commercial bank.
DGB Specialized Bank, a wholly-owned subsidiary of DGB Daegu Bank, was given the nod by the Kingdom’s central bank on September 30, South Korea’s Yonhap News Agency reported on Thursday.
Yonhap quoted a DGB Daegu Bank official as saying: “Currently, DGB Specialized Bank is only allowed to extend loans to Cambodians.
“DGB Specialized Bank will run operations for deposits, credit card issuance, foreign exchange and online banking in the first half of 2021.”
Ha Jong-weon, vice-chairman of the Kingdom’s bourse Cambodia Securities Exchange, said the upgrade mirrors the growth in Cambodia’s banking industry and burgeoning inflow of Korean banking technology into the Kingdom.
“Currently, Korean commercial banks in Cambodia, like PPCB, Shinhan Bank, Kookmin Bank, et cetera are very competitive and well-known. DGB Bank will provide Cambodia a new experience of Korean banking standard competitive offers.
“They have many experiences in Cambodia’s banking market and the economy. I believe that the business expansion of DGB is another success story of Korean businesses in Cambodia,” he said.
Last week, Cambodia and South Korea productively concluded the third round of negotiations on a bilateral free trade agreement (FTA), which is expected to boost bilateral trade and investment once it enters into force.
Ha said the deal would further strengthen the bilateral trade volume and provide significant competitive advantages that will beef up investment flow between the two countries.
Of note, he said, cheaper labour costs and tariff concessions will woo more Korean investors to set up factories In the Kingdom.
“The FTA will bring a lot of development to both countries, especially Cambodia. Consumers of both countries will also benefit from the agreement.
“High quality Korean products will be cheaper and more attractive to Cambodians. On the other hand, Cambodian agricultural products can more easily expand into the Korean market,” Ha said.
In 2018, DGB Daegu Bank finalised its 100 per cent acquisition of Cam Capital Specialized Bank Plc, which was later renamed to DGB Specialized Bank.
As of the end of June, DGB Daegu Bank’s assets were to the tune of 4.9 trillion won ($4.2 billion), Yonhap reported.