Research On The Development Strategy Of HN Bank In China

Since the establishment of diplomatic relations between China and Korea in 1992,more and more Korean enterprises have entered the Chinese market.South Korea's financial industry opened up new markets for more Korean companies to provide financial capital services,and gradually began to enter the Chinese market.At present,HN bank is the largest asset bank in Korean banking industry.As of 2016,HN bank has entered the Chinese market for 25 years.Although it has been stimulated by reform and opening up,economic growth and government support policies,the HN bank has failed to change the plight of the continued downturn in operating conditions.Therefore,it is necessary to reenact enterprise development strategy.This paper takes HN bank as the object of study,mainly studies the development strategy of HN bank in China's financial market.First of all,are analysed and the theory of localization strategy theory and the financial industry to the development strategy,summarizes the development process of foreign banks,and Korean banks development process and the current problems;then,through the research on the present situation of foreign banks operating in China,points out the difficulties in the management of foreign banks and the analysis of the HN Bank of the external environment;then through the analysis of the internal environment of HN bank,the business advantage of HN bank has a strong group of senior financial resources and industry experience,while the disadvantage is the lack of understanding of the financial market Chinese,HN bank China local corporate capital scale is limited,lead to the expansion of business difficulties at the same time,the government Chinese business to foreign banks because of the limitation of HN bank is unable to carry out services for Chinese financial services customers China's central bank's interest rate cut policy further squeezed the interest margin gains of HN banks.This article through the SWOT analysis,the development opportunities and threats faced by HN bank,the internal strengths and weaknesses analysis,pointed out that the HN bank only by merging with the banks,change the legal nature,change from the current Korean banks into Chinese and South Korea joint venture bank,can obtain the optimal strategy of steady growth.The short-term strategic goal is that by 2020,the total assets amounted to 150 billion yuan,with its own capital amounting to 15 billion yuan,the current ROE rose by 10%,and the current net profit amounted to 2 billion yuan.Long term goals:when the merger into the Chinese and South Korean joint venture bank,the stock holding rate remained at 20%?30%.In order to achieve the strategic goal of HN bank,this article has formulated the concrete plan of the implementation of the safeguard strategy,including carrying out the overall localization management in three aspects:the customer,the management and the staff.It proposes to provide more comprehensive and convenient financial services with the HN bank's Korea business arm,working with HN group's overseas institutions and HN bank partners.It is suggested that four levels of internal management system should be strictly managed,such as risk management,upgrading of IT system,upgrading of network management mode and establishment of enterprise culture.