Hana Financial Group said Monday that it has obtained a preliminary license from Singapore’s financial authorities to open an asset management company in the Southeast Asian country.

The Monetary Authority of Singapore granted the partial approval Friday, though it hasn’t notified the banking giant when a final business license will be issued, officials said.

Hana Financial’s attempt to make inroads into Singapore’s promising asset management market is part of the group’s vision of expanding its overseas earnings to account for up to 40 percent of the firm’s total profits by 2025, they added. The current figure is 21.7 percent.

Singapore is deemed a rapidly emerging market, poised to take over Hong Kong’s position as Asia’s financial hub, with nearly 40 percent of Southeast Asian fintech companies based there. 

Through the launch of the asset management firm the banking group also seeks to foster its nonbanking businesses, including asset management and securities, to diversify its earnings portfolio amid the prolonged low-interest environment.

"Through cooperation with Hana Financial’s overseas units in other Asian regions to create a synergy effect in global businesses, the envisioned asset manager in Singapore will diversify our revenue streams and serve as a springboard for global expansion into various advanced markets," said Hana Financial Group Chairman Kim Jung-tai.

Hana Financial Group, represented by flagship banking unit Hana Bank, is one of South Korea’s four major banking groups, the others being Shinhan, KB Kookmin and Woori. Hana Financial Group has 214 global divisions in 24 countries. It aims to grow into one of the world’s top 40 global financial institutions by 2025, the group said. 

By Choi Jae-hee (cjh@heraldcorp.com)