KB Kookmin Bank to gradually exit from New Zealand

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KB Kookmin Bank to gradually exit from New Zealand

Published: 13 Nov. 2024, 15:45

SHIN HA-NEE
[email protected]

KB Financial Group headquarters building in western Seoul [KB FINANCIAL GROUP]

KB Kookmin Bank is pulling out from New Zealand, citing a “strategic review” of the country’s financial market condition.

According to KB Kookmin Bank’s notice issued on Oct. 15, the bank will “wind down” its branch in Auckland, which first began operation in 1997, and make a gradual exit from the New Zealand banking market over the next few years. This decision was made "after a strategic review of the New Zealand financial market and the financial industry as a whole over the past few years.”

The bank told the Korea JoongAng Daily that the primary reason for pulling out of the market was not operating losses, as the Auckland branch has been running a surplus. It stressed that its decision was part of a “strategic decision,” but did not provide further details.

New Zealand’s central bank decided last year to impose tighter regulations on overseas banks operating in the country by restricting them to wholesale business starting in 2028.

KB Kookmin Bank halted opening accounts and granting loans since Oct. 15. Its other services will remain available until Mar. 31 next year.

The bank said that it would ensure “a smooth transition” for its customers, promising to minimize any inconvenience through a gradual scale-down.

BY SHIN HA-NEE [[email protected]]