Bank for Koreans in Japan
A new bank will be set up in Japan for ethnic Koreans living there, an official from the Korean Embassy said Monday. The bank's Korean-Japanese founders, the Korean government, corporations and banks will invest about 30 billion yen ($230 million) to establish the new financial institution, which will open in September.After its inauguration, the bank will become a financial holding company by setting up a group of subsidiaries, including a mutual savings and finance company, an insurance company and a finance company. The bank will be headquartered in both Tokyo and Osaka, with plans to enter the Korean market in the near future.
"Since credit unions run by Korean-Japanese in Japan are not allowed to merge or be transformed into banks," the embassy official explained, "the government and the Korean-Japanese association decided to create a new bank." If any of Japan's 18 credit unions run by Korean-Japanese go bankrupt, they can choose to be absorbed by the new bank, and the move would be aided by Japan's public funds.
Seoul and the Korean-Japanese association plan to apply for the business license in July. To promote the bank's establishment in the meantime, the Korean Em-bassy and the association will set up a headquarters this week. The center will create an electronic financial transaction network, raise capital and recruit employees. The Korean government said it would gradually increase the bank's capital, 30 billion yen, to about 100 billion yen by March, by attracting more investments.
Korean-Japanese business leaders will pour in most of the capital. But there will be a cap on the amount invested by any individual, 20 percent of the total capital, to prevent one or two large shareholders from grabbing management control. The Korean government said it would not intervene in the bank's management, and would encourage large corporations and banks in Korea that have business foundations in Japan, such as Lotte Group and Shinhan Bank, to invest in it.
by Nahm Yoon-ho
with the Korea JoongAng Daily
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