Deutsche Bank Injects $160M In Its Seoul Branch’s Coffers

Deutsche Bank AG is putting in more cash in its Seoul branch. It was reported that the German bank decided to expand this unit to increase its available capital.

According to Korea Joongang Daily, Deutsche Bank’s move to inject more funds into its Seoul branch was welcomed by the Financial Supervisory Service (FSS) of the country. The financial regulator’s chief said the bank made this decision as Korea started cutting red tape on the foreign exchange market.

The FSS said its governor, Lee Bok Hyun, recently visited the headquarters of Deutsche Bank in Frankfurt. On the day of his visit, Ram Nayak, the co-head of Deutsche’s investment banking unit, presented a summary of the company’s decision to expand the capital in its Seoul location.

During the event, Nayak also said that the current good condition of Korea’s financial market contributed to making the decision. They can see the long-term growth potential of the region’s economy as well as the industrial segment.

The FSS added that Deutsche Bank's new investment is also part of its Asian market strategy that centers in Korea. The financial regulator further said the increased capital in Seoul just shows that foreign investors see the country very positively - a good area for doing business.

Lee stated, "The decision is a reflection of global financial firms' expectation that the business environment in Korea will be improved thanks to efforts by the government and financial authorities to ease regulations on the foreign exchange market."

The Korea Herald also quoted Alexander von zur Muehlen, Deutsche Bank’s management board member, as saying, "This additional capital, along with our recent reentry into the local debt capital market, will enable us to better support our clients' expansion plans in Korea and reinforce the successful platform that we have built over past decades."

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