Western financial firms fleeing South Korea

It's been going on since 2008.

Western financial companies have been reducing their presence in South Korea after the 2008 global financial crisis dealt sharp financial blows to their headquarters. Fifteen western financial firms operating in South Korea have either withdrawn or reduced their businesses in South Korea, said the Financial Services Commission.

Of these firms 12 were from the United States and Britain, while the others were from Germany, France and the Netherlands. Three banks withdrew or downsized their operations with HSBC Holdings Plc pulling its retail banking out of South Korea to focus on the corporate banking service.

HSBC closed 10 of its 11 branches in South Korea Two foreign securities firms, including a local unit of U.S. Prudential Financial Inc. which was acquired by South Korea's Hanwha Securities Co., also closed their businesses here, the data showed. Four foreign-based asset management firms, five insurers and two credit financial firms either downsized or closed their operations altogether in Seoul.

Analysts said the pullout of foreign firms also came as they failed to localize their financial services to meet the needs of South Korean consumers.