Korean bank urges nationals to review business interests in RP

The Korea Exchange Bank (KEB) has advised Korean businessmen "to take a second long look and reconsider doing business in the Philippines," a top bank official said.

"There are no limitations in doing business in Manila. In fact, we have major ongoing investments such as LG Electronics and the Kepco power plant in Ilijan, Batangas as well as proposed investments in the Malampaya natural gas fields and Samsung in several infrastructure projects here," KEB Manila general manager Seung Kwon Kim said.

In fact, Kim admitted that there had been inquiries from Korean locators on the Subic Bay Metropolitan Authority (SBMA) and economic zones in Southern Luzon.

He said more Korean-led call centers have expressed interest in locating in the Philippines, due mainly to the availability of workers with high level of proficiency in the English language and competitive labor costs.

Kim admitted though that the unstable political situation related to the recent national elections had created some "uncertainties" among Korean investors.

The local KEB head, however, expressed satisfaction over the country’s economic fundamentals, particularly the projected five percent growth in gross domestic product (GDP) this year.

KEB is currently consolidating its credit and debit card business, solidifying its corporate banking activities, and expanding into the retail banking segment.

KEB deputy president and head of global corporate bank Dong-Jin Kim admitted in an earlier interview that "part of our expansion plans is to reach the retail banking market, and we are looking to partner with a local commercial bank."

The bank is one of the major players in Korea although it is 51 percent controlled by the US-based investment firm Lone Star Fund.