Hana Financial Invests $100 Million to Strengthen U.S. Operations

South Korea’s Hana Financial Group announced on December 19, 2023, its decision to invest $100 million into Hana Bank USA. This move aims to enhance the capital base of its U.S. operations, reflecting the group’s strategy to expand its presence in the North American market.

Hana Financial initially established Hana Bank USA in 2013 through the acquisition of Broadway National Bank. Since then, the company has increased its capital twice, with infusions of $36.5 million in 2016 and $65 million in 2022. The latest investment will allow Hana Bank USA to double its maximum lending limit per customer from $16 million to $32 million.

Expansion and Market Influence

In addition to its main branch in New Jersey, Hana Financial operates three other offices located in New York and Los Angeles. These branches focus on providing corporate financing services specifically to Korean companies operating within the United States. As of October 2023, the total outstanding loans across these four entities reached $3.88 billion, representing a significant increase of 69% compared to 2020.

This latest capital injection aligns with a broader trade agreement established earlier this year between Seoul and Washington. Under this deal, South Korea has committed to investing $350 billion into the U.S. economy over the coming years, in exchange for the reduction of tariffs on Korean-made products, including automobiles, from 25% to 15%.

Economic commentator Kim Kyeong-joon, a former vice chairman at Deloitte Consulting Korea, highlighted the importance of this investment. He noted that while major Korean manufacturers like Samsung and Hyundai have established substantial overseas operations, financial institutions in South Korea have lagged behind. “As a growing number of Korean firms tap into the global markets, however, our financial institutions are beginning to follow suit, as demonstrated by Hana Financial’s capital increase in the United States,” he stated.

The strategic move by Hana Financial has had a positive impact on its stock performance, with shares rising by 0.65% on the Seoul bourse following the announcement.

As the company continues to bolster its U.S. operations, it remains poised to support the growing number of Korean businesses aiming to expand their footprint in the competitive American market.