BNY Mellon clarifies exit as corporate trust banking only
The Bank of New York Mellon, the oldest bank in the United States, is ceasing corporate trust services in Korea.
The bank will maintain its Seoul branch, where it will continue to offer treasury and investment management services, and its representative office in Jeonju, North Jeolla, where it services assets for the National Pension Service.
According to the Seoul branch Monday, the Financial Services Commission approved its request to exit the corporate trust business on Dec. 8.
Bank of New York Mellon is also known as BNY Mellon.
"The closure of this business is a strategic decision," the local branch said in a statement Monday."While BNY Mellon returned the corporate license, our bank is actively expanding our business franchise into strategic areas including investment management, asset servicing and treasury services."
Korea has faced a steady dwindling in the number of banking and investment banking operations in recent years, the most recent being the decision by Citigroup to exit from consumer banking in the country. BNY Mellon insists that it remains "firmly committed" to the Korean market and will look for opportunities to grow its business.
A spokesperson from BNY Mellon's Seoul operations said by phone Monday that the exit is part of the bank's efforts to reallocate resources to other focus areas and ultimately expand its presence in the country.
BNY Mellon, which is primarily wholesale and high-net worth individual focused and is the world's largest global custodian, established its presence in Korea in 1988 with the establishment of the Seoul branch. In 2019, it expanded its domestic presence by adding a representative office in Jeonju, North Jeolla. The office in Jeonju was set up to strengthen ties with the National Pension Service, which selected BNY Mellon as its global custodian for fixed income.
BY KIM JEE-HEE [firstname.lastname@example.org]