Korea Development Bank opened a Frankfurt branch Monday, positioning it as a hub to raise funding in Europe and support Korean companies expanding across the region.
The state-owned policy lender said the office will function as its “Euro Finance Hub,” giving it direct access to European capital markets and enabling it to channel funding to Korean manufacturers and suppliers with operations across the continent.
The bank seeks to establish itself as a go-to financier in Europe’s core industrial base, where companies such as Hyundai Motor, Samsung SDI and Hankook Tire already operate factories, sales arms and research facilities.
“The branch will be a highly capable and effective Euro-financier for Korean companies operating in Germany and Europe,” KDB said in a statement, citing Korean investment in autos, batteries and other advanced manufacturing industries.
KDB also aims to diversify its business by cultivating relationships with German blue-chip corporations and regional banks.
The lender plans to offer products tailored to the local market, including Schuldschein loans, a popular form of private placement debt among German corporates.
The opening marks KDB’s return to Germany after a 26-year absence, having shuttered operations in 1999 during the Asian financial crisis.
Its reentry reflects a broader push by Korean state lenders to restore their global reach as local companies cement their role in cross-border supply chains.
Sustainable finance is another pillar of KDB’s European strategy. With the EU seen as the world’s most advanced green finance market, the Frankfurt office will back Korean firms in their energy transition while investing in European green funds.
“The Frankfurt office will allow us to provide more effective support to Korean companies doing business in Europe and to strengthen our global competitiveness,” KDB said. “By combining access to Europe’s deep capital markets with our network across North America and Asia, we intend to evolve into a strategic global player.”
With the Frankfurt branch, KDB operates 12 overseas branches, seven local subsidiaries and six representative offices worldwide. Its European subsidiary is located in Hungary.
hnpark@heraldcorp.com
