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| Hana Financial Group chairman Kim Jung-tae (center, second row) and Korea Exchange Bank president Kim Han-jo (third from right) pose at the inauguration ceremony of Hana Bank (China) Co. Ltd., the integrated unit of the Chinese branches of Hana Bank and KEB. (Hana Financial Group) |
Hana Financial Group, the nation’s second-largest banking group in terms of assets, said Sunday that the Chinese subsidiaries of Hana Bank and Korea Exchange Bank have completed their merger.
The establishment of Hana Bank (China) Co. Ltd. is expected to give impetus to the group’s plan to integrate the domestic operations of the two banks as early as in the first quarter next year.
“Hana Bank China will greatly contribute to the Korea-China trade and development of their financial industries, especially with the recent conclusion of the bilateral free trade agreement,” said group chairman Kim Jung-tae.
It is the group’s plan to promote its Chinese unit into one of the top five foreign banks in China within the next 10 years, according to the group’s spokesman.
“Hana Bank’s forte in retail banking and KEB’s skills in corporate banking and investment will create a positive momentum,” he added.
The Chinese unit currently has 7.8 trillion won of assets, 910 billion won of equity capital, 30 branches and 775 employees, according to the group.
Back in 2012, the financial group acquired KEB from U.S. private equity investor Lone Star Funds for 3.9 trillion won ($3.5 billion). By taking over the exchange bank, Hana came to have the largest overseas network ― 128 branches in 24 countries ― among South Korean competitors.
Aiming to maximize the synergy, group chairman Kim Jung-tae said in July that there will be an earlier-than-expected merger of the two banks.
Despite the continuous opposition from KEB’s labor union, the group merged the Indonesian banking units in March and the domestic credit card units earlier this month.
“Our key target is to become South Korea’s No. 1 and the world’s top 40 financial companies by year 2025, and also to increase the rate of overseas operating profits up to 40 percent,” the chairman said.
In order to achieve such a goal, it is crucial that the banking units integrate as soon as possible and operate as one, he added.
By Bae Hyun-jung (tellme@heraldcorp.com)
