Together with Myanmar’s HTOO Group, South Korean’s NongHyup Financial Group will start a financial service for farming equipment business in Myanmar, and will seek cooperation in other financial sectors such as banking and insurance

South Korea’s NongHyup Financial Group Inc. together with Myanmar’s HTOO Group will start a financial service for farming equipment businesses in the Southeast Asian country in the second half with this year, the company said Sunday.

Two parties had signed a memorandum of understanding to cooperate on setting up a financial service business for the distribution of farming equipment in Myanmar January this year. They will launch a joint task force team to work on detailed business planning by mid-April and finalize the contract by the end of June for full-fledged service start in July.

The Korean financial group will lead its project in Myanmar through its subsidiary NongHyup Finance Myanmar that it set up in 2016. The group raised the subsidiary’s capital to $8 million late last year from its initial investment of $3 million. It plans to expand NongHyup Finance Myanmar’s business by adding five more outlets to its current nine branches with an aim to increase the number of customers to 50,000 from current 28,000.

In addition to the farming equipment financing service, two financial groups will seek cooperation in other financial sectors including banking and insurance.

HTOO Group is Myanmar’s biggest business group with 26 affiliates in the financial, agricultural, distribution, food, aviation and construction industries. NongHyup Financial Group is one of the major financial institutions in Korea and is a subsidiary of the country’s National Agricultural Cooperative Federation.

(Eleven Media Group: http://www.elevenmyanmar.com/business/13722 )

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