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By Lee Yeon-woo
Deutsche Bank announced a capital allocation increase for its Seoul branch of 211.5 billion won ($150 million), Sunday, to support the bank's growth in the country and undertake more activities for its clients.
The plan was outlined at the meeting between Deutsche Bank's global management team and Financial Supervisory Service (FSS) Governor Lee Bok-hyun, who visited the headquarters of Deutsche Bank in Frankfurt last Friday. The parties discussed the current state of Korea's financial market, its investment environment and the direction of the country's financial supervisory policies.
Deutsche Bank's decision to allocate additional capital to its Korean business is underscored by the confidence it has in the stability and growth potential of the Korean market, according to the bank.
“Korea is one of the leading economies in Asia and a cornerstone for the tech sector globally. Its focus on innovation and technology industries combined with its world-class infrastructure, highly skilled workforce and dynamic private sector position it strongly for long-term growth,” said Alexander von zur Muehlen, Deutsche Bank CEO of Asia-Pacific, Europe, Middle East & Africa (EMEA) and Germany.
“This additional capital, along with our recent re-entry of the local debt capital market, will enable us to better support our client's expansion plans in the country and reinforce the successful platform that we have built over past decades,” Muehlen added.
Lee welcomed the decision. “This capital increase decision is a prime example representing the favorable view of foreign investors towards the Korean financial market. We hope this will pave the way for continued additional investments in the Korean financial industry by global financial companies and foreign investors.”
“Through this investment, I hope that Deutsche Bank's Seoul branch, marking its 45th anniversary in Korea, will enhance its business presence in Korea and take a fresh leap forward,” Lee said.
Lee's visit to Deutsche Bank's headquarters was in recognition of the close ties between Korea and Germany, which celebrate 140 years of diplomatic relations this year, and the bank's global commitment to the country.