Korean Banks to Stay in London Despite Brexit

By Park Hyong-ki

Four major local banks will keep their London branches going, despite concerns that the UK's withdrawal from the European Union will put a hard dent in the former's growth, industry sources say.

Canary Wharf /

Banks and nonbank financial companies are expected to continue operating their businesses as usual in the City of London or Canary Wharf, sourcing deals, providing trade financing or extending lines of credit for their European clients.

Shinhan Bank, KB Kookmin Bank, KEB Hana Bank and Woori Bank said their branches are staying put in London, despite Brexit doomsday reports and news, which they say have been blown out of proportion.

There has been a slew of news that some banks are considering relocating to other European cities such as Frankfurt, Germany due to fears over repercussions immediately following the UK's EU exit on March 29, 2019.

Some stories say local nonbanks including KB Securities have decided not to pursue acquisitions in London because of such concerns.

'Like any other potential deals, KB Securities received a proposal to buy a building there, and it looked at the proposal, and that was it.

It did not even pursue the deal. The news saying the company dropped it during negotiations because of Brexit is absolutely false,' a KB Securities spokesman said.

The banks said they have no particular problems remaining in London, and they all have Frankfurt subsidiaries, except KB Kookmin.

'Our London branch does not have any issue,' said a spokesman of Seoul-based Shinhan Bank, noting that it has a subsidiary in Frankfurt.

KB Kookmin Bank also said it is not considering relocating its London branch, which opened in May 2018.

Kookmin turned its London...