Taiwan's Fubon Financial Group Expands Presence in Korea

Taiwan’s Fubon Financial Group has reportedly submitted a notification to the domestic financial authorities regarding the establishment of a Fubon Bank Korea representative office.

Since entering the domestic financial sector through insurance, Fubon Financial Group has been expanding its presence by acquiring stakes in financial holding companies (Woori Financial Group) and credit card companies (Hyundai Card), and is now extending its reach to the banking sector.

The establishment of a Fubon Bank representative office in Korea is interpreted as an effort to facilitate communication between Taiwanese companies operating in Korea and Taiwanese banks. Moreover, there is speculation that Fubon Bank may conduct market research and eventually establish a branch in Korea.

Currently, there are a total of 33 foreign banks operating branches in Korea, with 39 branches in total. The majority of these banks are from the United States and China.

Fubon Financial Group operates various financial subsidiaries in Taiwan, including insurance, banking, securities, and asset management. It has expanded its business across Asia, including China, Hong Kong, Vietnam, Singapore, and Malaysia, as well as in the UK and Belgium.

In Korea, Fubon has been growing its business since 2018. In September of that year, it acquired a stake in Hyundai Life Insurance (now Fubon Hyundai Life) from Hyundai Motor Group. Through subsequent capital increases, it now holds an 82.9% stake, marking its entry into the domestic insurance industry. The following year, it acquired a 4% stake in Woori Financial Group, and in 2022, it purchased a 19.98% stake in Hyundai Card.

There is also speculation in the market that Fubon Financial Group may consider acquiring another Korean insurance company. In 2018, Fubon participated in the bidding for Lotte Non-Life Insurance when Lotte Group put it up for sale but lost to JKL Partners. In 2020, Fubon also participated in the preliminary bidding for Prudential Life Insurance Korea, which was being sold by the U.S.-based Prudential Group.

A specialist in insurance M&A commented, “Considering the current exchange rate situation, it could be a good strategy for Taiwan’s Fubon Financial Group to bid for Lotte General Insurance,” adding that “Fubon Hyundai Life has often been compared to Lotte Non-Life in terms of strategy, as both have pursued a two-pronged approach focusing on retirement pensions and insurance.”

Seoul Tribune (c)

#SeoulTribune #FubonFinancialGroup #FubonGroup #Fubon