Cho Hung Bank might take over regional banks

Wee Sung-Bok, president of Cho Hung Bank, said that the bank is willing to take over one or two regional banks such as Kwangju Bank and Kyongnam Bank.

On the other hand, Shinhan Bank expressed that it would disclose its decision about the proposed takeover of regional banks after the government finalizes details about financial support.

In this connection, it is very likely that the government-led restructuring will be carried out in a way that Hanvit Bank undertakes Peace Bank and a regional bank, while Cho Hung and Shinhan Bank take over some regional banks.

"Our management improvement plan calls for taking over a regional bank even before transforming into a holding company in 2002," Cho Hung's president Wee said.

Wee noted that it is necessary for the government to raise the BIS-based capital adequacy ratio of regional banks that it will undertake to over 10 percent by offering the public fund.