Kookmin Bank halts merger talks

The merger between Kookmin Bank and Housing and Commercial Bank (H&CB) is facing serious trouble with strong protests from their trade unions.

Kim Sang-Hoon, president of Kookmin Bank, faced with strong opposition of its union just four hours after his confirmation of the merger, told union leaders that he might suspend the projected merger.

Kookmin Bank's union leader Lee Kyung-Soo disclosed an agreement between the bank and the union, which calls for crystal clear handling of the merger with H&CB by considering the opinion of employees. He announced that it means the merger discussion will be suspended.

However, Kim did not disclose the bank's official position about the union's claim, so the merger possibility cannot be totally ruled out.

Prior to this, nearly 3, 000 members of the union staged a strike in front of the bank's headquarters in Seoul. Some union members threatened that they would burn themselves to death if the bank enforces the merger. In addition, Lee said that Kim admitted that he had agreed with the H&CB president to merge the two banks.