SC First Bank gets nod for holding company

SEOUL, June 17 (Yonhap) -- South Korea's financial watchdog said Wednesday it has
approved an application by the Korean banking unit of Standard Chartered Plc to
set up a financial holding company.
The Financial Services Commission said in a statement that the move makes SC
First Bank Ltd. become the first foreign lender to become a financial services
company in Korea.
The envisioned holding company would have three affiliates including the banking
and savings bank units and two grandchild arms like the securities unit under its
wing.
The move raised the number of financial services companies operating in South
Korea to five. Under a holding firm system, it is easier for financial companies
to seek more takeovers and develop and sell a wide range of financial products.
South Korea started permitting foreign financial companies to establish holding
companies here after a related law was revised in August 2007.
Standard Chartered Bank acquired Korea First Bank in April 2005 for 3.4 trillion
won (US$2.7 billion) and renamed it SC First Bank in September the same year.
sooyeon@yna.co.kr
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