South Korean Corporation Bank to Open in Kazakhstan

Microfinance organization BNK Finance Kazakhstan, part of the Korean corporation BNK Financial Group Inc., has been granted  permission to transform into a second-tier bank.

The news was reported by the Agency of the Republic of Kazakhstan on Regulation and Development of Financial Market’s press service (ARFM).

BNK Financial Group Inc. is the largest South Korean financial group with assets of $129 billion and a national rating of “AAA.” The group has two banks with over 300 branches and “A2” international ratings.

In 2021, BNK MFI received a license to carry out microfinance activities. Since then, the company has significantly increased its performance and capabilities and now ranks 13th in terms of assets in Kazakhstan’s microfinance organizations sector.

The decision by the Agency for Regulation and Development of the Financial Market of Kazakhstan (ARDFM) to issue a permit for BNK’s voluntary reorganization into a second-tier bank was approved by a resolution on June 7.

As noted by the press service, the appearance of a new foreign bank in Kazakhstan’s financial market will strengthen competition in the banking sector and provide clients in Kazakhstan with financial services that adhere to international groups’ advanced corporate standards.

Earlier this month, during talks with the head of South Korea, Yoon Suk Yeol, Kazakhstan’s president  Kassym-Jomart Tokayev, cited Seoul as one of Astana’s most important strategic partners in the Asia-Pacific region. Korea ranks fourth in foreign trade turnover and is among Kazakhstan’s top ten largest foreign investors.