China’s Financial Markets Opening And The Development Strategies Of Korean Banks In China

With open-door policy of China’s financial markets, from the20th century90s,Korean banks began operating in China. For the first time, Korea exchange bank builtthe office in Beijing on July1992. By the end of2010, the number of branches ofKorean banks in China reached to sixty, and the size of the investment funds alsogreatly increased. However, Korean banks operating in China in terms of Visibilityand profitability is the relatively weak compared to the company for themanufacturing industry(such as Samsung, LG, etc). Therefore, what problems whichKorean banks faced with and how these problems generate are worth to study. First,on the basis of related literatures, definition of its study background and meaning.Second, analyze organization of Chinese banks, present conditions and features, andmake a comparison between before and after join WTO that the limit of financialindustry foreign opening, and comprehensive analyzing on four steps: the early stage of opening (1979~1993), the early stage of progress (1994~2000), the transitionperiod of complete opening (2001~2006) and the stage of complete opening(2007~today). Third, we have consider develop and feature of foreign banks in China,search for what they have an influence for good on general sense.Concentrate upon the need to Korean banks enter the China market, synthesizeon develop steps each of them, take for the analysis method it called SWOT,reconsider to four sector that superior good, inferior good, opportunity and threatfactors of Korean banks. Comprehensive analyzing on strategy of SO, ST, WO andWT, makes a plan to need when they enter China market. For make it Koreanbanks a stable development in China market, to propose the following five plan.First, a entering areas diversification. Korean banks should expand to themiddle western China. Second, entering format diversification. Build a Branchor local subsidiary, and joint with local banks. Third, financial contents andproducts diversification. Expand to Private banking(PB) and credit cardbusiness, and develop a new contents. Fourth, a financial specialistglocalization. a financial specialist is the key how to got a successful progress in China. Fifth, capital financing diversification and expanded. Suggest expandto take deposits, make more various business with Korean companies in China.Korean banks in the process of the late1990’s Asian financial crisis and2008’sglobal financial crisis, already has been completely with financial risk managementsystem and high quality level’s service. Also, as with other foreign global bank, holdsconsiderable potential for development in the banking industry in China. For the fulldevelopment of the Korean banks, they to enter before the need for a morecomprehensive marketing plan, fully understand Chinese financial practices, focusingon promoting financial business to customers in China, will be the interests ofcustomers as a development strategy.