South Korea Financial Sector Emerges as Top Asia Expansion Target

Global financial institutions are increasingly prioritising South Korea for regional expansion while adopting a more cautious approach towards China and India, according to a joint survey by the Asia Securities Industry & Financial Markets Association and KPMG.

The South Korea financial sector has become one of the region's fastest-growing destinations for international financial firms.

Approximately two-thirds of the 34 institutions surveyed plan to expand across Asia-Pacific during the next three years.

Interest in the South Korea financial sector increased to around 50% of respondents, compared with just 21% a year earlier, reflecting improving confidence in the country's financial markets and growth prospects.

While firms continue to recognise opportunities in China and India, respondents cited regulatory complexity, geopolitical uncertainty and operational challenges as reasons for adopting a more measured approach.

Singapore and Hong Kong also remained key regional expansion destinations because of their established roles as international financial centres.

The findings illustrate how global financial institutions are recalibrating regional growth strategies amid changing economic and geopolitical conditions.