Deutsche Bank expands Seoul branch capital by $160M

Financial Supervisory Service (FSS) Governor Lee Bok-hyun, right, poses for a photo with Ram Nayak, co-head of investment banking at Deutsche Bank at the bank's headquarters in Frankfurt on Friday. [FSS]

Germany’s Deutsche Bank is increasing the capital of its Seoul branch by an additional 150 million euros ($160 million), a decision welcomed by Korea’s Financial Supervisory Service (FSS).

The financial regulator said that its governor Lee Bok-hyun visited the German investment bank’s headquarters in Frankfurt on Friday, where Ram Nayak, co-head of investment banking, gave a briefing on the bank’s latest decision to expand the capital in the Seoul unit.

The Deutsche Bank executive cited the soundness of Korea’s financial market, the long-term growth potential of the country’s economy and industrial sector, as well as the bank’s Asian market strategy centers in Korea for the capital increase, according to the FSS.

The FSS chief welcomed the decision saying that it showcased the foreign investors’ positive perspective on the domestic market.

"The decision is a reflection of global financial firms' expectation that the business environment in Korea will be improved thanks to efforts by the government and financial authorities to ease regulations on the foreign exchange market," said Lee.

The Seoul office of Deutsche Bank marked its 45th anniversary of operations this year.

During his visit to the headquarters, Lee discussed the global economic and market situation with Deutsche executives, stressing that while there are persisting uncertainties from global rate increases, high commodity prices and real estate risks, the Korean financial market remains comparatively stable due to thorough risk management.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]