Hana, KEB to announce merger of card units

Hana Financial Group, the nation’s second-largest financial holding firm by assets, will hold a board meeting on Wednesday to announce the merger of its card unit with the Korea Exchange Bank’s credit card division, officials said.

Hana is planning to ask for the Financial Services Commission’s approval for the integration this month, which will lead the merged entity to become the sixth-largest card company in South Korea with a combined market share of 7.8 percent.

Hana is eyeing to introduce the joint credit card company on Nov. 3, bank officials told local media. Last month, the Financial Services Commission gave approval to KEB to spin off its credit card unit for a merger, which is seen as a precursor to a bigger integration of Hana Financial and KEB.

Hana Financial acquired KEB in February 2012 from U.S. buyout firm Lone Star Funds for 3.9 trillion won, but the acquisition has been strongly protested by KEB’s labor union.

(monicasuk@heraldcorp.com)