KB Financial Group to push for savings bank takeover

SEOUL, July 5 (Yonhap) -- KB Financial Group Inc., South Korea's top financial services company, plans to work toward buying at least one savings bank in a bid to beef up its business competitiveness, its head said Tuesday.
"The group continues to move to take over troubled savings banks. If potential takeover prices are deemed as appropriate, we will seek to buy more than one player," Group Chairman Euh Yoon-dae said in a press conference marking his first year at the helm.
His remarks came as major banking groups, including KB Financial Group, failed to buy a package of three troubled savings banks, including Jungang Busan Savings Bank. Mid-sized securities firm Daishin Securities Co. was named as a preferred bidder for them last week.
The government 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.
"I believe that potential takeovers of savings banks would not incur risks for the group," Euh said.
Meanwhile, Euh said the group's share prices will "soar" after its banking unit unloads shares in its parent group, hinting that the share sale would be conducted as scheduled.
Kookmin Bank, South Korea's top lender, bought around a 21 percent stake in its parent, KB Financial Group, in September 2008 when the group was created. By banking law, the bank is required to unload around a 9 percent stake in the group by the end of September.
Kookmin Bank bought the stake at 57,200 won (US$53.63) per share, but as the group's share prices are trading below the price, market speculation has risen that Kookmin Bank will have difficulty in selling its stake in the group by September.
sooyeon@yna.co.kr