South Korea’s state-owned Korea Development Bank (KDB) is exploring a potential exit from the Uzbek market. The possible sale of KDB Bank Uzbekistan is being discussed as part of a global reorganization of the bank’s overseas network.
Optimizing the overseas network
KDB plans to improve the efficiency of its international network, which currently includes 25 entities: 12 branches, 7 subsidiary banks, and 6 representative offices. As Spot.uz reports, citing the South Korean publication Maeil Business, the optimization will affect markets where units have operated for a long time without expanding their activity.
The Korean publication cites the representative offices in Moscow and Abu Dhabi, opened in 2013 and still not transformed into full-fledged branches, as examples of such locations. Scaling back some foreign assets ties into South Korean President Lee Jae-myung’s policy to improve the efficiency of state institutions.
The situation in Uzbekistan
KDB entered the Uzbekistan market in 2006 by buying Daewoo Group’s stake in UzDaewoo Bank. The Uzbek unit’s authorized capital now exceeds 506 billion soums, and the South Korean government owns 86.32% of the bank’s shares through the parent structure.
According to Maeil Business, the bank has not shown breakthrough results in the local market over two decades of operation. At the same time, private South Korean players are showing active interest in Uzbekistan.
KDB has already held preliminary consultations about a potential asset sale with Shinhan Bank and Hana Bank. Shinhan Bank plans to establish a subsidiary in Uzbekistan no later than 2027, while Hana Bank intends to open an office in the republic.
Why it matters
Despite the negotiations, the deal remains in question due to internal objections within KDB itself.
If the deal goes through, it could signal a shift in the structure of Korean capital in Uzbekistan: private players are ready to replace the state bank.
