Kookmin Bank winds down NZ operations
Kookmin Bank has announced its gradual exit from New Zealand, citing uncertain future business conditions following a strategic review of the market.
The bank’s Auckland branch will wind down operations over the next few years, impacting both retail and wholesale banking services.
“After a strategic review … we have decided to gradually wind down our branch in Auckland and exit the New Zealand banking market over the next few years, as our continued business operations in New Zealand were uncertain in the future,” Kookmin Bank told interest.co.nz.
Background and financial performance
Operating in New Zealand since 1997 as a branch of its South Korean parent company, Kookmin held $415.9 million in loans and $266 million in deposits as of June 30, with an unaudited post-tax profit of $5m for the first half of the year.
Recent regulatory changes by the Reserve Bank restricting overseas bank branches to wholesale services may have influenced Kookmin’s decision, especially as Kookmin had advocated for branches to continue accepting retail deposits, interest.co.nz reported.
Loan extensions and customer guidance
To support customers during the transition, Kookmin is offering eligible borrowers a one-time loan extension of up to six months for loans maturing by March 31.
“This extension is available to give you sufficient time to find a suitable alternative financial institution ... to ensure a smooth transition,” the bank said.
Loans maturing after March 31 must be refinanced or repaid by the maturity date.
Account transfers and closures
Kookmin will transfer remaining balances for term deposits, savings, and loans to customers’ designated alternative bank accounts upon maturity or repayment, closing accounts thereafter.
Customers with cheque deposit accounts are asked to transfer funds to another bank by May 31, 2026, via internet banking or by providing alternative account details to Kookmin.
This gradual exit plan allows customers ample time to transition their financial arrangements to other institutions.
As Kookmin Bank steps back from the New Zealand market, it emphasises customer support and clear timelines to assist in the seamless transfer of accounts and services, interest.co.nz reported.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
