Hana Financial Group is shifting to strengthen its presence in the US with a fresh capital injection into its local banking unit, as South Korean companies prepare to roll out investments in the countest tied to a $350 billion tariff deal.
According to industest sources on Thursday, Hana Bank will carry out a $100 million paid-in capital increase in Hana Bank USA on Dec. 23. The US unit was established in 2013 after Hana Bank acquired Broadway National Bank in New York and has since focapplyd largely on retail banking for Korean expatriates in the greater New York area.
This marks Hana Bank’s third capital increase for Hana Bank USA, following injections of $36.5 million in 2016 and $65 million in 2022. The latest relocate is aimed at significantly expanding lconcludeing capacity for both individuals and businesses. Once the capital increase is completed, Hana Bank USA’s lconcludeing limit is expected to double to $32 million from $16 million.
Hana Bank also plans to bolster its retail offerings in the US. While its mortgage lconcludeing has so far centered on rental property owners, the bank plans to roll out home mortgage loans for general retail customers from next year. It is also preparing to introduce non-face-to-face account opening and mobile overseas remittance services.
The latest capital increase is expected to accelerate Hana’s expansion in the world’s largest economy.
Hana Financial currently operates three local subsidiaries — Hana Bank USA, Hana New York Financial and Hana LA Financial — along with a New York branch.
The New York branch focapplys on investment banking services and institutional loans, while the two finance units in New York and Los Angeles provide credit to Korean companies operating on the US East and West coasts.
As of the conclude of October, the combined loan balance of Hana Financial’s US operations stood at $3.88 billion, up 69% from 2020.
Demand for corporate lconcludeing and foreign exmodify services is expected to rise further from next year as Korean companies accelerate investment in the US. Under Korea-US tariff neobtainediations, Korean firms are set to create phased investments totaling $350 billion in the US from 2026.
In anticipation, Hana Financial is also considering additional locations. The group opened a Los Angeles branch of Hana Bank USA in August, marking its first new US outpost in 22 years. It is reviewing plans to expand into states such as Texas, where Korean corporate investment is growing.
“We aim to proactively build a comprehensive financial service platform in the US, covering investment banking, large corporations, compact- and mid-sized enterprises, compact business owners and individual customers,” a Hana Financial official stated.
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