Summary of Proposed Investment
Project Number
20135
Company Name
KEB Hana Bank
Date SPI Disclosed
Nov 15, 2002
Country
Korea, Republic of
Industry
Financial Markets
Projected Board Date
Dec 19, 2002
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Dec 19, 2002
Signed : Dec 20, 2002
Invested : Dec 26, 2002
Project Description
Hana Bank and Seoul Bank provide a full range of banking services and products for both individuals and corporations such as retail banking, commercial banking, corporate finance, credit card services and asset management. The project will enhance the scale and scope of Hana Bank''s operations while at the same time assisting the Republic of Korea in meeting its desired goals in privatization as well as achieving consolidation in the banking industry. The merger between Seoul Bank and Hana Bank is expected to be completed by December 1, 2002, and KDIC has committed to sell to Hana Bank 60% of its Hana Bank holdings , or 36,600,000 shares, within twelve months, with the remaining 40% to be sold within 18 months.
IFC has been by Hana Bank to participate in the merger and privatization of Seoul Bank, which is 100% government owned by the Korea Deposit Insurance Corporation. In addition to enhancing the scale and scope of Hana Bank''s operations which will lead to a strengthened financial position, this privatization will also assist the government of South Korea in meeting its stated goals of privatizing, consolidating and reforming the financial sector. These goals are entirely consistent with those of the IMF and the World Bank as this project seeks to privatize one of the largest Korean banks, thus marking an important milestone of the restructuring process in Korea.
IFC has been by Hana Bank to participate in the merger and privatization of Seoul Bank, which is 100% government owned by the Korea Deposit Insurance Corporation. In addition to enhancing the scale and scope of Hana Bank''s operations which will lead to a strengthened financial position, this privatization will also assist the government of South Korea in meeting its stated goals of privatizing, consolidating and reforming the financial sector. These goals are entirely consistent with those of the IMF and the World Bank as this project seeks to privatize one of the largest Korean banks, thus marking an important milestone of the restructuring process in Korea.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
H. Scott Stevenson, Senior Invesment Officer
Email: sstevenson@ifc.org
Hyung Ahn, Investment Officer
Email: hahn@ifc.org
Email: sstevenson@ifc.org
Hyung Ahn, Investment Officer
Email: hahn@ifc.org