Woori, Shinhan, Hana bid for Samwha Mutual Savings

Korea’s regulator suspended Samwha’s operations for six months, after it failed to meet capital requirement levels.

Three South Korean banks are eyeing up troubled Samwha Mutual Savings Bank (Samwha), which was suspended from operating because it did not meet regulatory capital requirement levels.

Woori Financial Group, Hana Financial Group and Shinhan Bank have all reportedly submitted their letters of intention to bid for Samwha, according to the Korea Deposit Insurance Corporation (KDIC).

The KDIC suspended Samwha Mutual Savings Bank’s operations for six months on 14 January, after the bank failed to meet regulatory capital requirement levels.

The suspension comes as part of the government initiative to strengthen the country’s banking industry as Korea’s savings banks continue to suffer from toxic loan books following excessive financing in the real estate market during the pre-2008 property boom.

View the full story in Retail Banking International.