Korea Exchange Bank workers union rejects Hana takeover

Employees fear Hana Bank’s lower profit compared to KEB may spread to the latter.

Unionized workers of the Korea Exchange Bank (KEB) together with certain executives have expressed their opposition to Hana Financial Group’s acquisition of a controlling stake in the lender from Lone Star Funds.

Hana Financial Chairman Kim Seung-yu signed the $4.1 billion deal with Lone Star Chairman John Grayken to buy the Texan private equity firm’s 51.02 percent interest in KEB in London last week. However, news of the deal is boosting KEB employees’ opposition.

Hundreds of personal memos containing individual workers’ opposition are plastered on the wall inside the KEB headquarters in downtown Seoul, Thursday.

“I hate Hana Bank so much!” says one unnamed memo on the wall.

Another pointed out Hana Financial’s low profitability that will spread to KEB. “Your KEB buyout is preposterous considering your low profit!”

Hana Bank, the flagship unit of Hana Financial is far behind KEB in terms of profitability and financial soundness, although its asset size makes it the fourth largest above KEB.

View the full story in The Korea Times.