SEOUL, KOREA − As an increasing number of foreign financial service companies announce their plans to leave Korea, including HSBC's retail banking business, UK insurance group Aviva, and Goldman Sachs Asset Management, some in the financial service industry are wondering whether more and more foreign companies will withdraw in droves.

Given ING Life and ING Asset Management will soon be sold off, there will certainly be more companies leaving the Korean market. Some experts, however, said, "There are always companies who leave the market because they haven't made enough money to justify their presence. But it is highly unlikely that so many foreign companies pull out of the market in large numbers."

 

HSBC Seoul Office is currently considering a plan to withdraw its retail banking business by closing 11 retail banking offices across Seoul. Aviva Group meanwhile will move out of Korea after handing over a 47-percent stake of Woori-Aviva Life to its local partner Woori Financial Group. Goldman Sachs has decided to close its asset management unit in Korea. Deutsche Asset Management has recently closed its retail business operation by merging retail marketing with corporate sales.

 

Those in the industry forecast that the next in line would be Standard Chartered in banking, a fund management company specializing in overseas bond-type funds, and a Korean unit of the world's largest asset management firm, and a European financial service firm.