Major South Korean headquartered bank Hana Financial Group has gained a preliminary license from Singapore's financial authority to open an asset management company in the sovereign island city-state.
The Monetary Authority of Singapore granted the partial approval on 11 June but media reports said it had not notified Hana Financial when a final business license will be issued.
Hana Financial's move into the Singapore market is part of the group's bid to grow overseas earnings from 21.7% currently up to 40% of the firm's total profits by 2025, it revealed in a statement on 11 June.
The envisioned asset manager in Singapore will diversify our revenue streams and serve as a springboard for global expansion into various advanced markets."
The launch of the asset management firm would also build its non-banking businesses to diversify its earnings portfolio amid the prolonged low-interest environment.
Hana Financial Group Chairman Kim Jung-tai said: "Through cooperation with Hana Financial's overseas units in other Asian regions to create a synergy effect in global businesses, the envisioned asset manager in Singapore will diversify our revenue streams and serve as a springboard for global expansion into various advanced markets."
Hana Financial Group, which includes its flagship banking unit Hana Bank, is one of South Korea's four major banking groups alongside Shinhan, KB Kookmin and Woori.
Hana Financial Group said it has 214 global divisions in 24 countries and aims to grow into one of the world's top 40 global financial institutions by 2025.