Foreign ownership of Korean banks jumps dramatically, report finds
(12 October 2004 – South Korea) Foreign companies own more than 60 percent of South Korea’s banking shares and almost half of the country’s financial services businesses, according to a Ministry of Finance and Economy report.
The report found that at the end of July foreign ownership of financial companies was 49.4 percent compared with 39.4 percent at some two years ago.
It said that foreign ownership of banking shares equated to 62.7 percent of banks’ market capitalisation compared with 48.2 percent at the end of 2001.
Foreign companies owned 52.7 percent of insurance companies in South Korea, up from 37.4 percent in 2001.
One of the largest increases was in bonds sold locally where foreigners held 3.34 trillion won compared with just 429 billion won about two years ago. This has raised their debt holding to 0.53 percent from 0.09 percent.
It said that foreign ownership of banking shares equated to 62.7 percent of banks’ market capitalisation compared with 48.2 percent at the end of 2001.
Foreign companies owned 52.7 percent of insurance companies in South Korea, up from 37.4 percent in 2001.
One of the largest increases was in bonds sold locally where foreigners held 3.34 trillion won compared with just 429 billion won about two years ago. This has raised their debt holding to 0.53 percent from 0.09 percent.
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