Hanmi Financial in Los Angeles is angling to benefit further from what it described as a trend of Korean companies laying U.S. expansion plans.
The nation's oldest Korean-American bank, Hanmi has courted South Korean companies for years. It's opened a representative office in Seoul, South Korea's capital, to extend its reach. "We expect the new office will help drive additional engagement and business activity, which will strengthen the bank's U.S. Subsidiaries of Korean Companies business initiative,"
"Establishing a presence in Seoul will further enhance accessibility, convenience and communication while providing market insights to Korean companies looking to expand into the U.S or with U.S. operations," Lee wrote.
Banking South Korean-domiciled companies is a major component of the $7.7 billion-asset Hanmi's business plan. Hanmi launched its U.S. Subsidiaries of Korean Companies effort in 2019. It has grown into a major profit center. According to Hanmi, loans to Korean companies totaled $917 million on Sept. 30, with deposits amounting to $798 million.
Lee sees opportunities for additional growth. In a press release last month announcing the opening of the representative office in Seoul's financial district, Lee said foreign direct investment by South Korean companies in the U.S. is on the upswing. While Hanmi can't conduct transactions in Seoul, it can offer a range of other services. "Our direct presence in Seoul ensures that we can deliver sound counsel, market intelligence, and in-language customer support, all based on our deep understanding of the countries' business cultures," Lee said. In the U.S., Hanmi serves Korean corporate clients from a network of "Korea desks" in Washington, California, Colorado, Texas, Illinois, Georgia, Virginia and the New York Metropolitan Area.
Hanmi's South Korean push is "a win-win for clients in both markets," Katherine Cartwright, principal at the New York-based global advertising agency Criterion Global, said. Cartwright echoed Lee's comments about the growing interest in the U.S. among South Korean firms.
"The trade relationship between U.S. entities and Korea is very important," Cartwright said. "Korea is a crucial market for U.S. brands and vice-versa. For brands focused on global expansion into Korea, the appeal of a Korea-specific bank is very strong," Cartwright said.
For Criterion Global, its representation of the California Table Grape Commission, which counts South Korea as a key market, led to ties with other global brands expanding there, including LIV Golf. "We've been successful in Korea, and as a result we've helped our clients' brands expand globally and capitalize on the economic size of this market," Cartwright said. "It's a huge gateway … We're getting more business and inquiries, [primarily] from Korean firms that want access to the U.S."
According to Cartwright, the first wave of Korean companies entering the U.S. consists mostly of importers seeking new consumers for their products. Cartwright pointed to the growth of Korean skin care and television, pop music and other media content as examples. With the success of "Squid Game" on Netflix, "Americans have suddenly developed the appetite to read subtitles," Cartwright said.
South Korea's gross domestic product is expected to grow about 2.5% in 2024 to $1.87 trillion, according to the International Monetary Fund.
The secondary side of an expanded U.S. presence for South Korean companies "is that business-to-business component," Cartwright said. "That's where you'll see banks and companies like ours serving as a conduit and pathway to help support the flow of commerce and global expansion. From a banking standpoint, there's a huge need."
Robbie Crosier, a partner in the Peters, Kussmaul and Crosier law firm in Plano, Texas, who specializes in merger-and-acquisition work, said South Korean companies "are showing strong enthusiasm for expanding in the U.S., driven by access to new markets and the stability of the business climate."
Crosier said he recently represented a large South Korean manufacturer in its acquisition of a Dallas-based competitor. "For many Korean businesses, acquisitions like this are not only about market share but also about integrating local expertise, navigating regulatory landscapes more effectively, and building brand recognition within U.S. industries," Crosier wrote in an email to American Banker. "These factors make expansion into the U.S. a priority for Korean companies seeking long-term global growth."
With its new Seoul office, Hanmi joins a number of U.S. banks with a presence in South Korea, including Bank of America, Bank of New York Mellon, J.P. Morgan Chase and
