This article was published on Feb. 20, 2025, at 3:59 p.m. on the ChosunBiz MoneyMove site.
Sangsangin Group is delaying its response by filing a lawsuit requesting the Financial Services Commission to cancel the order to sell its equity in savings banks. Although they lost in the first trial of the administrative lawsuit, they submitted an appeal and briefly bought some time through a stay of execution application. It is analyzed that they are trying to secure time to negotiate prices since they must sell two savings banks in the near future.
On the 20th, according to investment banking (IB) industry and legal circles, Sangsangin Group is engaged in a lawsuit seeking to meet the requirements for maintaining major shareholder eligibility and to annul the order for stock disposal against the Financial Services Commission. After losing in the first trial at the end of December last year, Sangsangin Group submitted an appeal this year. However, since the first trial ruling has been made, they also submitted a stay of execution application, as they must comply with the order for stock disposal from the Financial Services Commission.
The court has decided to suspend the effect of the Financial Services Commission's order until tomorrow (21st) while the hearing is ongoing. If a ruling to grant the stay of execution is made in this case, it is expected that they will be able to secure time before the appeal ruling. A legal source explained, "Stay of execution cases are generally granted when there is a concern of 'irreparable harm', so there is a high possibility that the ruling will suspend the Financial Services Commission's order before the appeal ruling."
The predominant analysis is that Sangsangin Group's application for a stay of execution along with the appeal against the first trial ruling is to maintain their negotiating power on price. According to the Financial Services Commission's order for equity disposal, Sangsangin must sell Sangsangin Savings Bank and Sangsangin Plus Savings Bank within six months. It seems that they determined they would be in a relatively unfavorable position in price negotiations once the six-month deadline is set.
Sangsangin Group is accelerating the sale of savings banks. With the time gained from the appeal and stay of execution, they are actively engaging in the sale process. Sangsangin Savings Bank is currently undergoing due diligence by OK Financial Group and is in the process of price negotiations. However, it is expected to be difficult to reach an agreement quickly due to the significant difference in valuation between Sangsangin Group and OK Savings Bank.
An IB industry source noted, "The gap in desired price between Sangsangin Group and OK Financial Group is quite large, so it seems unlikely that the sale negotiations will be completed in the short term, especially since Sangsangin Group is sticking to its desired price," adding, "As for Sangsangin Plus Savings Bank, I understand that there are no interested buyers at this time." It was previously reported that Woori Financial Group explored the acquisition of Sangsangin Savings Bank in 2023, but ultimately the deal fell through.