(South Korea) – Banks in South Korea continue to explore a new round of mergers, as the needs for scale and consolidation become ever stronger.Shinhan Bank for example has just entered talks with KorAm Bank on a potential merger that would create a bank with US$78 billion in assets.
Hana Bank and foreign owned Korea First Bank are also reportedly in negotiations, concerned to ensure scale in competing with largest Korean domestic player Kookmin Bank.
A merged Shinhan and KorAm would produce a player close to the country’s second largest financial group, Woori Finance Holding with assets of 103 trillion won. Combined, Hana and KFB would have assets of 83 trillion won – under half Kookmin’s 189 trillion won as the end of December 2001.