Participants make a hand gesture for "one," meaning Hana in Korean, at an event to celebrate the opening of Hana Bank's Budapest office in Hungary, Thursday (local time). From left are Kim Haeng-beom, chairman of the Korean Chamber of Commerce in Hungary, Hungarian Investment Promotion Agency head Péter Szatmári, Korean ambassador to Hungary Hong Kyu-dok, Lee Seoung-ho, regional managing director of Europe and Middle East at Hana Bank, and Lee Ki-hoon, Hana Bank Budapest office manager. Courtesy of Hana Financial Group

Hana Bank announced the opening of an office in Budapest, Hungary's capital, on Thursday local time, aimed at assisting Korean firms bolster their presence in the region, the lender said on Friday.

Hungary boasts the world's fourth-largest battery manufacturing facilities, with a steady influx of significant foreign capital linked to rechargeable battery businesses.

Many Korean entities are expanding investments in Hungary, buoyed by the high quality of labor relative to cost and the country's geographical advantages of bordering seven European neighbors, including Austria.

The Budapest office aims to identify business opportunities tailored to the specific needs of Korean firms seeking expansion in greater Europe. This strategy is supported by ongoing market research in Eastern Europe and efforts to strengthen business network building among industry players.

The representative office will seek to function essentially as a private diplomat, providing and expanding communication channels encompassing Korean entities, existing market peers and financial institutions in Hungary.

Also fortified will be market intelligence gathering and sharing, a step toward more integrated business planning amid rapid changes in customer demands and business strategies.

"The opening of the Budapest office will strengthen our Eastern European network," a Hana Financial official said. "We will do our best to facilitate close communications between Korean firms and their global peers in Hungary."

The Budapest office raises the number of the bank's global financial networks to 26. Hana plans to open channels in India and Poland.