Korea Development Bank (KDB) is considering selling its subsidiary KDB Bank Uzbekistan, Maeil Business reports.
According to the publication, the South Korean state-owned bank plans to reorganize its overseas network to improve efficiency. It currently has 25 entities abroad, including 12 branches, seven subsidiaries and six representative offices.
The optimization could primarily affect markets where KDB has operated for a long time but has not expanded its activities. Maeil Business cited its representative offices in Moscow and Abu Dhabi, which have been operating since 2013, as examples.
KDB also plans to sell branches in countries where Korean commercial banks are beginning operations, including Uzbekistan.
The state-owned bank entered the Uzbek market in 2006 after acquiring Daewoo Group’s stake in UzDaewoo Bank, which had been established nine years earlier. However, KDB Bank Uzbekistan has not shown “clear results” over the past two decades, the publication said.
At the same time, private Korean banks have stepped up efforts in recent years to establish operations in Uzbekistan. Shinhan Bank is preparing to open a local subsidiary, while Hana Bank also plans to open an office in the country. Another South Korean state-owned lender, the Export-Import Bank of Korea, has a representative office in Tashkent.
According to a Maeil source in the investment banking sector, KDB conducted a demand survey involving Shinhan Bank and Hana Bank. However, due to “negative sentiment toward the sale”, no decision has yet been made regarding KDB Bank Uzbekistan.
The publication linked KDB’s overseas network restructuring to a policy aimed at improving the efficiency of government institutions launched by South Korean President Lee Jae-myung. In particular, the Ministry of Economy and Finance plans to consolidate overseas offices of South Korean state institutions in the US, Vietnam, Kenya and the UAE.
Shinhan Bank has maintained a representative office in Tashkent since 2009. In February 2025, representatives of Shinhan Financial Group said they planned to strengthen their position in Uzbekistan’s banking market during talks with the Central Bank.
South Korean media reported in April that Shinhan Bank planned to establish a subsidiary in Uzbekistan by 2027. The subsidiary’s establishment, along with digital banking and solutions for small and medium-sized businesses, was also among the key topics discussed by Shinhan Financial Group CEO Jin Ok-dong and President Shavkat Mirziyoyev during the latter’s visit to Seoul in September.
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