ID :
190851
Fri, 06/24/2011 - 12:34
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Shortlink :
https://oananews.org//node/190851
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Five financial firms bid for suspended savings banks
SEOUL, June 24 (Yonhap) -- Five financial institutions in South Korea, including leading banking group KB Financial Group Inc., offered bids for buying three ailing savings banks in a package, sources said Friday.
The state-run Korea Deposit Insurance Corp. (KDIC) is seeking to sell seven troubled savings banks, including top player Busan Savings Bank, whose operations have been suspended since January due to their deteriorated asset quality and capital strength.
Sources said the KDIC received final bids from five financial firms, including Shinhan Financial Group Co. and Hana Financial Group Inc., for the package of three savings banks -- Jungang Busan Savings Bank, Busan II Savings Bank and Domin Mutual Savings & Finance Co.
The two other bidders were mid-sized brokerage houses Kiwoom Securities Co. and Daishin Securities Co., the sources added. Meanwhile, Korea Investment Holdings Co. dropped out of the bidding though it submitted a letter of intent to buy the savings banks.
South Korea is seeking to sell the seven ailing savings banks in three packages in an effort to overhaul the teetering sector, which was hit by a pileup in soured construction loans. If package deals fall through, the KDIC will sell them separately.
sooyeon@yna.co.kr
The state-run Korea Deposit Insurance Corp. (KDIC) is seeking to sell seven troubled savings banks, including top player Busan Savings Bank, whose operations have been suspended since January due to their deteriorated asset quality and capital strength.
Sources said the KDIC received final bids from five financial firms, including Shinhan Financial Group Co. and Hana Financial Group Inc., for the package of three savings banks -- Jungang Busan Savings Bank, Busan II Savings Bank and Domin Mutual Savings & Finance Co.
The two other bidders were mid-sized brokerage houses Kiwoom Securities Co. and Daishin Securities Co., the sources added. Meanwhile, Korea Investment Holdings Co. dropped out of the bidding though it submitted a letter of intent to buy the savings banks.
South Korea is seeking to sell the seven ailing savings banks in three packages in an effort to overhaul the teetering sector, which was hit by a pileup in soured construction loans. If package deals fall through, the KDIC will sell them separately.
sooyeon@yna.co.kr
