KEB might be absorbed into financial holding company

It is expected that Korea Exchange Bank (KEB) will be absorbed into the financial holding company that the government is going to establish based on Hanvit Bank.

A senior official of the Financial Supervisory Commission (FSC) said that the financial holding company, which will be established in February next year, will include healthy banks such as KEB.

In this connection, officials of Commerz Bank, the leading foreign shareholder of KEB, discussed the matter with FSC officials.

Chung Keun-Yong, vice chairman of FSC, said that the government would encourage healthy banks, including Cho Hung Bank and KEB, to integrate with the projected financial holding company to be reborn as a leading megabank.