Apro Service Group, which incorporates the nation’s largest private lender Rush and Cash, opened a subsidiary in Poland, hoping to later expand into the European market.

“By launching Apro Financial Poland, we shall secure a bridgehead to pioneer into the European market,” Choi Yoon, group chairman and president of OK Savings Bank, was quoted as saying.

The group held an opening ceremony in Warsaw on Monday.

“Being a member state of the European Union, Poland has a relatively well-established financial legal system, as well as an open-minded attitude toward the loan business,” Choi said.

The country also offered an interest rate ceiling of 70 percent, as well as a loose set of government regulations.

South Korea’s maximum rate is currently 34.9 percent, down from 66 percent in the past, and is expected to fall further. A bill to lower the current ceiling to the 20 percent range is pending at the National Assembly.

“Uzbekistan or Kazakhstan had also been considered as valid markets, but the financial environments of these countries were not as favorable as in Poland,” Choi said.

While 15 loan companies operate in the Polish market, the U.S.-based Provident Funding accounts for more than 50 percent of the total market share, according to officials.

“Once the loan sector is settled, we will move on to car loans and real estate mortgages, and then to credit cards and savings banks in the long term,” Choi said.

“Geographically, we hope to eventually expand to other parts of Eastern Europe, such as the Czech Republic and Slovakia.”

By Bae Hyun-jung tellme@heraldcorp.com)