Citibank Korea, a new entity created by US financial giant Citigroup, said Tuesday it aims to boost its local market share to as high as 10 percent.
The new entity was launched Monday by integrating Koram Bank, the sixth largest lender in South Korea, and Citibank's operations in Seoul. It has 66 trillion won (58.9 billion dollars) in assets and 238 local branches.
Koram Bank previously held about 6.0-7.0 percent of the market.
"The creation of this bank is all about future growth and providing better services to South Korean and international customers," Citibank Korea president Ha Yung-Ku said.
He said his bank would focus on consumer banking and services to smaller firms.
"Our retail customers will have access to personalised financial planing and a broader range of investment opportunities."
Citibank Korea will establish stronger retail businesses and networks in South Korea by using Citibank's global leadership in credit cards and wealth managemenusing, he said.
Ha ruled out excessive price wars, although his aggressive retail banking strategy sparked fears of tougher competition in the sector.
Kookmin Bank, South Korea's largest retail bank, also vowed to strengthen its retail banking services, recognising its market leadership could be challenged by major international players.
"We're now facing 'star wars', with not only local competitors but also major international players declaring a challenge to our market leadership," Kookmin's new president Kang Chung-Won said Monday.
The challenge is formidable amid concerns about an economic slowdown and souring household debt, Kang said, adding Kookmin would focus on effective management and restructuring.
"What's urgent is ensuring asset quality and capable risk management before considering any new business," he said.
Kang called for bad loan write-offs to reduce Kookmin's non-performing loan ratio.
Emerging from the 1997-98 Asian financial crisis, troubled financial institutions here were bailed out with state money and then sold on to foreign investors.
US equity funds control Korea Exchange Bank and Korea First Bank.
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