o Time : June 15, Friday 12:00 ~ 2:00 p.m.

o Venue : 9705(The 7th floor seminar room)


Foreign Investment in Korean Banks

Abstract

During the restructuring process of banking industry, the government pursued a policy of encouraging the entry of foreign banks. All the regulatory obstacles that stood in the way of foreign entry have been eased, and as long as foreign banks are able to prove the soundness of their management and funding resources, they can enter the banking industry. Thus, since the financial crisis in 1997, there have been frequent cases of foreign capital participating in the domestic banking industry by outright acquisition or by taking a capital stake.
This paper explains and compares three recent cases of foreign investment in Korean banks; (1) Kookmin Bank (Minority investor for Portfolio management) (2) Korea First Bank (51% vs 49% Joint venture with Korean government) (3) Korea Exchange Bank (wholly owned subsidiary)