The Cambodian units of two leading South Korean banks are leading the response of foreign financial institutions to the country’s military conflict with Thailand, which has been subject to an uneasy ceasefire since July 29.

Woori Bank ( Cambodia ) stated on August 14 that it would “fully cancel all outstanding debts for customers or co-borrowers who are fallen soldiers. Additionally, the bank will cancel debts on a case-by-case basis for customers or co-borrowers who are disabled or injured military personnel.”

As well, the bank has contributed food to “frontline military heroes” and displaced citizens in the northwestern border provinces of Preah Vihear, Siem Reap, Oddar Meanchey, Banteay Meanchey and Pursuit.

“Woori Bank stands with the Cambodian people,” notes Shon Cheol Su, the lender’s CEO, and that it is “committed to continuously contributing positively to society and will keep seeking new ways to actively support the government in rebuilding affected communities”.

KB Prasac Bank, the Cambodian unit of KB Kookmin Bank, earlier announced a donation of US$500,000 to help refugees restore and develop areas along the border.

The bank has also stated that it has “completely written off debts for customers and co-borrowers who were soldiers who served in the battle to protect the integrity of Cambodia” and announced scholarships for four-year bachelor degrees to the children of the “martyrs” between 2025 to 2030 as well as jobs for them.

Food, challenging conditions, recovery

During the second week of August, KB Prasac management, accompanied National Bank of Cambodia governor Chea Serey and representatives of the Association of Banks in Cambodia and the Cambodia Microfinance Association, visited the families of fallen soldiers in Kampong Thom and Siem Reap provinces to donate food.

Kang Nam-Che – the Korea-based Kookmin vice-president who serves as chairman of the local subsidiary – earlier visited the bank’s branch in the city of Poipet, a cross-border trading hub with numerous casinos catering to Thai gamblers.

“Despite the recent border clashes,” the bank notes, “Poipet branch continues to operate to provide financial services to customers and the public who have been under challenging conditions.”

After visiting staff at several branches, top management representatvie travelled to a refugee camp in nearby O’Chrov district to provide donations to local authorities and displaced families.

“[Kookmin’s] KB Prasac Bank remains committed to helping the people and customers achieve a swift recovery,” the bank notes, “through both financial and non-financial assistance programmes”.

The lender, established through a merger with a microfinance institution in in 2023, has 188 branch offices and more than 10,000 staff in Cambodia.

Woori also has its roots in the microfinance sector, launching operations as a commercial bank in 2022. It has 144 branches and more than 3,500 staff across the country.

Ceasefire holds

The ceasefire brokered by Malaysia’s Prime Minister Anwar Ibrahim in Kuala Lumpur last month followed five days of heavy fighting along the border with dozens of fatalities on both sides.

Following the intervention of US President Donald Trump — who phoned the prime ministers of Cambodia and Thailand — the American ambassador to Malaysia attended the peace talks as co-organizer. The Chinese ambassador took part as an observer.

Both sides have accused each other of violating the ceasefire, which came into effect on July 29 several hours before the Thai military detained 20 Cambodian soldiers in a remote border area in Preah Vihear province, two of whom have since been released.

Cambodia has repeatedly called for the release of the remaining 18 men, who were still being detained as of August 19.