South Korea’s major financial groups are deepening their presence in Southeast Asia as they seek new sources of growth beyond the increasingly saturated domestic market.
The combined assets of major Southeast Asian banks operated by KB Kookmin, Shinhan, Hana and Woori Bank rose to 52.26 trillion won at the end of June 2026, up 3.47 trillion won, or 7.1 per cent, from 48.79 trillion won at the end of December 2025, according to their latest semi-annual reports.
Shinhan Financial Group recorded the largest increase among the four groups. The combined assets of Shinhan Vietnam Bank and Shinhan Bank Indonesia climbed by 1.82 trillion won, or 10.8 per cent, to 18.72 trillion won. The growth was driven largely by the expansion of its operations in Vietnam, one of Shinhan’s key Southeast Asian markets.
KB Financial Group also recorded strong growth. The combined assets of KB Prasak Bank in Cambodia and KB Indonesia Bank rose by 1.13 trillion won, or 7.3 per cent, to 16.61 trillion won. KB Prasak Bank’s assets increased from 8.12 trillion won to 8.87 trillion won, while KB Indonesia Bank’s assets rose from 7.36 trillion won to 7.73 trillion won.
Hana Financial Group’s Indonesian subsidiary, PT Bank KEB Hana, posted an even stronger increase. Its total assets grew by 449.3 billion won, or 9.8 per cent, reaching 5.18 trillion won from 4.57 trillion won at the end of last year.
Woori Financial Group recorded more modest overall growth, with its Southeast Asian banking assets rising 0.6 per cent to 11.92 trillion won. However, the group experienced significant differences across its markets.
Woori Bank Vietnam recorded the strongest performance, with assets increasing 18.9 per cent from 4.67 trillion won to 5.55 trillion won. In contrast, Woori Sodara Bank in Indonesia saw its assets decline from 5.26 trillion won to 4.42 trillion won. Cambodia Woori Bank posted a marginal increase, with assets rising from 1.92 trillion won to 1.95 trillion won.
Vietnam and Cambodia have emerged as particularly important growth markets for South Korean financial groups. Woori Bank Vietnam added nearly 900 billion won in assets within six months, while KB Prasak Bank expanded by more than 750 billion won.
The trend reflects a broader shift in strategy, with South Korean financial institutions moving beyond traditional overseas branches and representative offices to establish locally based banking operations targeting retail customers and businesses.
The expansion is also driven by limited growth prospects in South Korea’s mature financial market. By building stronger customer bases in Southeast Asia, the banks hope to increase lending, deposits and other financial services while establishing long-term growth engines in economies with stronger expansion potential.
The latest figures suggest that Southeast Asia is becoming an increasingly important pillar of South Korean banks’ international growth strategy, with Vietnam, Indonesia and Cambodia at the centre of their regional expansion.
