S. Korean bank to operate in Cambodia next month

The first commercial bank funded by South Korean investors will begin operations in Phnom Penh next month, with unusual banking services on offer, local newspaper the Rasmei Kampuchea said on Thursday.

Camko Bank, which is in the family of Camko City, a 2 billion U. S. dollar South Korean housing project to construct a satellite city on the outskirts of Phnom Penh, will become operational late July, the report quoted a Camko City official as saying.

With capital from its parent bank in South Korea, Busan Bank, Camko Bank will provide a variety of "unprecedented" banking services such as loans, VIP services and savings, according to the official.

Different from commercial banks currently operating in Cambodia, Camko Bank will provide among other things a lending service that borrowers don't have to repay the principal, but only the interest, said the official, who declined to elaborate on the issue.

According to the official, Camko Bank will play a main role in the future stock market in Cambodia.

The Korean International Cooperation Agency (KOICA) has been assisting the Cambodian government to set up a stock exchange market in Cambodia, which is expected to start in 2009.

Source: Xinhua