KB Financial eyes purchase of non-banking firms after Q3

By Kim Soo-yeon
SEOUL, June 19 (Yonhap) -- KB Financial Group Inc., South Korea's No. 3 financial
services company, said Friday it will seek to buy non-banking businesses after
the third quarter if the economic crisis shows signs of waning.

"We are considering raising about 2 trillion won (US$1.58 billion) in capital. If
the economy picks up, the group plans to acquire a brokerage house or an insurer
to beef up our non-banking operations," Hwang Young-key, president of KB
Financial, told reporters.
Hwang said although it is still too early to say the worst is over, amid mixed
economic signals, the group will evaluate takeover opportunities after the
country is believed to have emerged from the current slump.
KB Financial said earlier it is considering selling shares to boost its cash
holdings. Market watchers speculated the potential share offering may be aimed at
securing ammunition to purchase Korea Exchange Bank (KEB), currently controlled
by Lone Star Funds.
"It is premature for the group to increase capital for the sole purpose of buying
KEB," Hwang said, shrugging off such speculation.
Kookmin Bank, the banking unit of KB Financial, has continued to express interest
in buying KEB even after Lone Star scrapped a deal to sell its stakes to Kookmin
Bank in November 2006 due to legal complications related to its purchase of KEB
in 2003.
sooyeon@yna.co.kr
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