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S. Korean banks talk deal
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July 30, 1998: 7:01 a.m. ET
Troubled Hanil, Commercial Bank of Korea reportedly discussing merger
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NEW YORK (CNNfn) - Commercial Bank of Korea and Hanil Bank are discussing a possible merger in case both fail to attract foreign investment to improve their financial structure.
A deal would create South Korea's biggest bank and boost their chances of surviving the country's deepest recession in more than 40 years.
Spokesman for both banks confirmed the companies are in talks, though they emphasized the discussions are in the early stages.
Hanil and Commercial Bank were among several banks that submitted new recapitalization plans to the South Korean Financial Supervisory Commission as part of ongoing restructuring in the industry.
South Korea has been encouraging mergers among four major commercial banks - Hanil, Commercial Bank, Chohung Bank and the Korea Exchange Bank -- that were given a reprieve by the Financial Supervisory Commission to create so-called leading banks, a watchdog spokesman said on Thursday.
"Through mergers among the four banks, we want several 'leading banks' to emerge that can represent the Korean financial industry and compete with top-notch foreign banks," said Chung Sang-duck, deputy spokesman at the commission.
-- from staff and wire reports
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Hanil Bank
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