이 기사는 2021년 04월 19일 07:55 thebell 에 표출된 기사입니다.

Shinhan Bank has decided to continue its key operation in Myanmar after it temporarily shut down its branch in the country’s largest city of Yangon, with one of its employees being shot by the country's military recently.

Shinhan Bank has decided to let one of its three expatriate employees in Myanmar to return Korea based on the guidelines from the Financial Services Commission and the Ministry of Foreign Affairs, industry sources said on Thursday. The bank is currently running its business by making 33 local employees work from home instead of immediately stopping its operation.

The conflict between the military and protesters is showing little sign of abating in Myanmar, with a local employee of Shinhan Bank who was shot in the head died earlier this month.

Shinhan Bank has not completely stopped its Myanmar business and is continuing essential transactions including supporting some Korean firms. It may be difficult for the lender to reenter the country if it decides to discontinue its business now due to the nature of the licensing business, which must obtain or maintain a license from the local financial authority.

Shinhan Bank has maintained its stable operation over the past eight years in Myanmar thanks to its localization efforts. It established business strategy led by local employees and reduced the number of its expatriate employees to three.

“The remote management will be implemented until the situation is stabilized there,” an official at Shinhan Bank said. “As we have pursued the localization in Myanmar, there won’t be any major disruption to our operation.”

Major South Korean lenders started their business in the country in 2013. Apart from Shinhan Bank, KB Kookmin Bank, Woori Bank, Hana Bank, Korea Development Bank, The Export-Import Bank of Korea, and Industrial Bank of Korea applied to get an approval from the central bank of the country to open their branches in the country, but Shinhan Bank was the pioneer, opening the first Korean bank branch in the Southeast Asian country in 2016.

The Myanmar government has been strict when allowing foreign banks to establish branches or local entities, requiring more than $75 million in capital.

Shinhan Bank has focused on corporate financing based on its branch since it entered the country. Its affiliate Shinhan Card has collaborated with the lender, providing credit loans to corporate customers of the bank.

Industrial Bank of Korea and KB Kookmin Bank obtained the approval to set up a local subsidiary last year. Total 28 domestic financial companies currently operate in the South Asian country, including nine banks, two insurance companies, and 17 credit finance firms. (Reporting by Hyun-ji Son)