Voluntary mergers between healthy banks to be announced in Nov.

In early November, voluntary mergers between healthy banks will be announced.

The results reached by the management evaluation committee in its review of the rehabilitation plans and the list of distressed companies to be closed submitted by 6 banks will be announced on Nov. 3. Once the results are announced, the corporate and financial restructuring process is expected to speed up.

Financial Supervisory Commissioner Lee Keun-Young stated Sunday at a press conference, "The torpid atmosphere at the Financial Supervisory Service caused by the Dongbang Mutual Savings and Finance illegal loan incident will be alleviated and the restructuring of the corporate and financial sectors will be completed on schedule."

"The results to be revealed by the bank management evaluation committee on banks that have received public funds and/or have BIS ratios of less than 8% will be announced Nov. 1 or 3. Banks deemed to lack self-reliance will be restructured by the government's lead through incorporation into financial holding companies,¡± he added.

The voluntary mergers between healthy banks, which were originally to be determined by mid-October, were delayed until early November due to problems related to foreign capital procurement and other complications.

"The decisions on the closure of distressed companies will be announced with the management evaluation results for banks," said Commissioner Lee.

Chung Ki-Hong, vice chairman of FSS, remarked, "A financial institution representative committee meeting will be convened on Oct. 31 in order to push for the announcement of companies to be closed down to be made before Nov. 3."

In addition, the Dong-Ah Construction creditor group will hold a meeting on Oct. 30 at the Seoul Bank to decide on the provision of fresh funds worth 340.9 billion won and whether the company should be closed down.