Hana Financial approved for Singapore asset management

The headquarters of Hana Financial Group in Seoul. [YONHAP]

Hana Financial Group said Monday it received preliminary approval to establish an asset management company in Singapore.

It will be the first asset management subsidiary set up by the company outside of Korea, if established.

The Monetary Authority of Singapore gave a preliminary nod Friday for the Korean financial group to establish a "registered fund management company" in the country, the group said in statement. A fund management company must be registered with the Singaporean authorities to do business there.

According to the Singapore regulator, a registered fund management company needs minimum capital of 250,000 Singaporean dollars ($188,400) and at least two full-time Singapore-based employees with at least five years of relevant experience.

Hana Financial Group said the recent move is part of its strategy to strengthen overseas businesses, especially in the non-banking sector, and diversify its sources of profits.

"Singapore is rising as an Asian financial hub replacing Hong Kong," the company said in statement. "By entering Singapore's asset management market with high growth potential we plan to strengthen our foothold in the global market."

Hana Financial Group Chairman Kim Jung-tai said the new fund management unit in Singapore will act as a stepping stone for expansion into other markets.

The company currently has presence in 24 countries including Singapore.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]