Sangsangin Savings Bank, which received prompt corrective action due to deteriorating soundness, will be sold to KBI Group.
According to the financial sector on the 31st, Sangsangin Savings Bank and KBI Group signed a stock purchase agreement (SPA) that day. KBI Group is said to have agreed to take about 90% equity in Sangsangin Savings Bank. The two sides appear likely to finalize the acquisition after going through the financial authorities' review of eligibility for a largest shareholder.
Sangsangin Savings Bank is a savings bank ranked around 10th in the industry by asset size. It has been pushing for a sale due to issues with maintaining the eligibility requirements of the largest shareholder of Sangsangin Group, its biggest shareholder. On Mar. 3, its asset soundness deteriorated, and it received a management improvement recommendation, a prompt corrective action, from the financial authorities. It held sale talks until recently with OK Financial Group, which owns OK Savings Bank, ranked around second in the industry, but they fell through.
KBI Group, which is set to acquire Sangsangin Savings Bank, acquired Raon Savings Bank in Gumi, North Gyeongsang, in Jul. Raon Savings Bank received a management improvement recommendation, a prompt corrective action, last year due to deteriorating management.