| Woori Bank's promotional image for the branch opening in Hungary / Courtesy of Woori Bank |
By Anna J. Park
Woori Bank recently opened a branch office in Budapest, Hungary after receiving formal authorization from the East European country's central bank, the Korean lender said Tuesday.
Woori Bank plans to offer corporate financing services for Korean companies that made inroads into Hungary as well as European companies operating in the country. Korea is the largest foreign investor in Hungary and Woori Bank hopes the opening of the branch will strengthen the lender's European network.
Attracted by relatively cheap labor and massive financial assistance from the Hungarian government, Korean battery producers including LG Energy Solution and SK On as well as their main suppliers are planning to make large-scale investments in that country. That means more commission fees for Korean banks operating there.
Hungary offers a 9-percent corporate tax rate, which is the lowest among the 27-member European Union and this trait has attracted major overseas investments into the country. The East European country also provides a favorable policy environment for foreign investments, particularly for automobile and secondary battery makers.
"The opening of Woori Bank's Budapest branch in Hungary aims to build a close-nit European network," an official from Woori Bank said. "Woori Bank plans to strengthen corporate financing deals for local companies in Hungary as well as Korean companies that advanced into the country," the bank official added.
Hungary is the fourth country in Europe, following the U.K., Germany and Poland, where Woori Bank opened branch offices. At present, Woori Bank operates regional offices in 23 countries in Asia, America and Europe. The bank opened up its European entity in Germany back in 2018, as it received authorization from the German financial regulatory authority as well as the European Central Bank.