ICBC keen on South Korea expansion

The Chinese bank is also in negotiations with KB Financial Group for a stock swap.

The Industrial and Commercial Bank of China (ICBC) hopes to target both Chinese and local customers by expanding its presence in Korea, in line with its efforts to increase its overseas business.

The Beijing-based international lender submitted a letter of intent (LOI) to buy a stake of Kwangju Bank from the Korea Deposit Insurance Corp. (KDIC). The state-run KDIC holds a 57 percent stake in Woori Finance Holdings, the largest financial holding company in the nation by assets, and the holding company has a 99 percent stake in the Gwangju-based provincial lender, which has assets of $20.4 billion as of September.

It is not known how many shares the Chinese lender plans to buy, but it is at least more than the 4 percent minimum requirement for acceptance of an LOI.

ICBC’s Seoul branch did not confirm the report saying it was not part of the branch’s business, but that of the headquarters of the lender.

The biggest lender in the world by market value is also in talks with KB Financial Group for a stock swap. ICBC Chairman Jiang Jianqing met KB Financial Chairman Euh Yoon-dae in Seoul, in November on the sidelines of the G20 Business Summit, where they exchanged their thoughts on the idea.

View the full story in the Korea Times.