ANZ Banking Group Ltd's (ASX:ANZ) failed bid for Korea Exchange Bank (KEB) has broadened its outlook on the potential for expansion in northern Asia, The Australian has reported.

ANZ chief executive Mike Smith told the newspaper KEB reopened his eyes to the possibilities in northern Asia.

"Because Japan and Korea are more developed economies, you don't think about their potential so much and you tend to get obsessed by the opportunities in greater China, greater Mekong (mainly Vietnam), Southeast Asia and India," Mr Smith said.

He added ANZ could boost its presence in Korea without necessarily buying anything.

ANZ, which aims to draw around 20 per cent of its 2011 profit from Asian operations, is also eying further expansion in Japan, according to the paper.

"I really want to have a look at Japan, and what we can do there that's a little bit different.

"There are still these massive liquidity pools in Japan. I think it would be a shame not to tackle that in some way," Mr Smith said.