Hana Bank, one of the largest commercial banks in South Korea, said Tuesday it is considering acquiring a stake in a local bank in Myanmar.

The Southeast Asian nation has recently started allowing foreign financial companies to run operations, to a limited extent.

“While having applied at the local financial authorities in Myanmar for launching a branch in the local market, Hana Bank is also considering to acquire a stake in a major local bank,” said a spokesperson from Hana Financial Group, the parent company of Hana Bank, confirming recent news.

The official did not reveal details of the acquisition, including the name of the Myanmar bank.

Among top banking companies in the Southeast Asian nation are Kanbawza Bank, AYA Bank, CB Bank, and Apex Bank. Hana has partnered with Kanbawza Bank -- the largest local bank by asset volume -- for remittance and trade finance since 2016. It signed an agreement with AYA Bank to cooperate in sales and joint investments in 2012.

Along with the planned stake acquisition, the Korean bank has applied to participate in bidding for the launch of a local branch.

Only 13 global banking firms -- from Australia, Thailand, Japan, Malaysia, Singapore and China -- currently operate branches in Myanmar.

Shinhan Bank, which received a permit in 2016, is the only Korean bank that runs branches there. Local financial authorities will grant permission to some global banks to operate businesses in the nation this year.

Hana’s domestic rivals Kookmin and IBK have each applied to open subsidiaries, while KDB Bank has applied with local financial authorities to launch a branch in the market.

By Kim Young-won (wone0102@heraldcorp.com)