The president of state-run Korea Development Bank (KDB), which is seeking to privatize a controlling stake in Woori Finance, is not in favor of mergers between local banks, reported Money Today.
The report cited president Min Yoo-sung, who said in an interview with the paper that he believes South Korean banks, which have 96% of their assets in the domestic market and only 4% in overseas investments, need to diversify their portfolios in order to compete with other global players.
Min said that if those banks were to merge, the merged entity would be even more focused in the local market. Min was cited as saying he is not in favor of those businesses consolidating, as it would be more difficult for them to hedge against risks.
See here for posts on the privatization of Woori Finance or here for more information about the ongoing M&A activity in Korea’s financial sector.
Source: Money Today (translated)
More From privateequitykorea
No related posts.
