Woori Financial eyes acquiring Hanmi Bank

Move is part of Woori's plan to capture Korean American market in the two US coasts.

Woori Financial Group, the holding company of Woori Bank confirmed reports that it was pursuing Hanmi Bank, the largest bank focused on the Korean American market on the West Coast.

Should the deal materialise, the holding company's subsidiary in New York, Woori America Bank and Hanmi in California may create synergy between the two coasts, according to a report in Korea Times.

The spokesperson added that the talks between Woori and Hanmi have been going smoothly and they are expected to seal the deal in the near future. According to the plan, Woori will buy new shares from Hanmi and become the largest shareholder.

Hanmi operates 26 branches in California where the Korean immigrant population is concentrated. In the wake of the financial crisis in America, the 28-year-old bank has seen mounting losses from its loan business and was ordered by regulators to raise $100 million by July, according to the company.