Hanoi: South Korea's state-run Korea Development Bank (KDB) announced that it has received approval from Vietnam's central bank to set up a subsidiary in Hanoi. This development comes more than six years after the bank initially filed its application in 2019.

According to Yonhap News Agency, this is the first instance since 2021 where the Vietnamese central bank has issued a license for a foreign lender to create a local subsidiary. In a press release, KDB noted that this approval is a key milestone, signifying the bank's formal entry into Vietnam's financial market as an institutional partner, supported by the Seoul government's diplomatic efforts.

The newly granted approval permits KDB to offer financial services to both companies operating or investing in Vietnam and to provide project financing under the oversight of Vietnamese financial regulators. Furthermore, KDB stated that this strategic move is poised to enhance financial and industrial collaboration between South Korea and Vietnam, while also aiding Korean enterprises in penetrating the Southeast Asian market.