Despite pandemic impact , ASEAN countries remains lucrative for local lendersCustomers talk to employees at a Shinhan Bank branch in Vietnam ( Shinhan Bank ) Despite the pandemic impact being felt across the world , South Korean   banks are retaining their faith in the ASEAN countries -- dubbed as a new market with relatively high interest rates and demand for fresh funds . With travel restrictions to key ASEAN markets likely to be lifted soon -- as there are zero coronavirus deaths in Vietnam and Cambodia so far -- the countries will not only work as a breather for the lenders , but also as a battleground for heightened competition . The combined net profit of overseas businesses of four major commercial banks here -- KB Kookmin , Shinhan , Woori and Hana -- declined 13 . 8 percent on - year to 246 . 9 billion won ( $ 204 . 9 million ) from January to March , when cases related to the coronavirus were getting registered across the globe in a fast pace . Amid the frenzy , three lenders here -- KB Kookmin , Industrial Bank of Korea and Korea Development Bank -- has recently clinched preliminary licenses to launch subsidiaries in Myanmar , the lenders said in April . Myanmar is notorious for being strict with granting licenses to foreign banks , although its market is referred to as “ post - Vietnam ” by economic experts , due to its growth potential . Local lenders have been operating branches and offices in Myanmar for nearly a decade , but have yet to establish subsidiaries there . “ The coronavirus pandemic has delayed the Myanmar government ’ s selection process for around two months , but overall our plans concerning our key projects in the ASEAN market are progressing smoothly , ” a KB Kookmin spokesperson told The Korea Herald on Tuesday , adding that the lender plans to launch the subsidiary by the second half of the year . Once the launches are finalized , the lenders are expected to rub shoulders in the housing loan market there , seeking to create synergy with the Myanmar government ’ s project to create a collective residential complex for low - income families .   Jeonbuk Bank ’ s Cambodian subsidiary Phnom Penh Commercial Bank headquarters in Cambodia . ( JB Financial ) 　 On the back of South Korean President Moon Jae - in ’ s New Southern Policy -- aimed at deepening ties with Southeast Asian nations , banks have been increasing their presence in the ASEAN countries . The market has grown as their key source of revenue . According to the Financial Supervisory Service , South Korean banks had a combined 195 subsidiaries , branches and representative offices in 39 countries overseas as of end - 2019 . A total of eight of such operations were newly launched last year and five of them were fresh additions to the lenders ’ ASEAN sales network , including IBK ’ s Indonesian subsidiary and KB Kookmin ’ s Vietnam branch . The combined net profit for their Vietnam operations came to $ 156 million in the cited period , which was higher than the corresponding figures of $ 149 million for Hong Kong and $ 110 million for China , respectively . Vietnam alone accounted for nearly 10 percent of the combined overseas net profit for 2019 , which totaled $ 988 million . In terms of individual banks , Jeonbuk Bank ’ s Cambodian subsidiary Phnom Penh Commercial Bank , logged a net profit of 20 . 7 billion won ( $ 17 . 4 million ) alone in 2019 , up 40 . 5 percent on - year . The robust revenue alongside Korea ’ s low interest rates and an expected shift in the global production chain from China to ASEAN nations such as Vietnam in the post - virus era are expected to further drive local lenders to the ASEAN market . The latest pandemic has pushed the Bank of Korea to slash its base rate to a record - low of 0 . 5 percent , dragging down the lenders ’ interest rates on loans and other products as well . Commission fees from products and loans have remained the main source of revenue for local banks for decades and experts have been calling for the need to diversity their options . “ The center of the global production chain is forecast to move to Vietnam from China in the post - virus era , as it has been a favored destination for such changes in trade flows and has been containing the coronavirus effectively , ” Oh Chul , a global business professor at Sangmyung University said . By Jung Min - kyung ( mkjung @ heraldcorp . com ) [ 네이버 에서 코리아 헤럴드 구독 ] ▶ KH Podcast    ▶ KH Video <ⓒ KoreaHerald ( www . koreaherald . com ) 무단 전재 및 재 배포 금지 >