Major Korean banks bid for troubled Samhwa

South Korea's three major banking groups have submitted bids for a troubled mid-sized savings bank.

The country's second-largest banking group by assets, Woori Finance Holdings Co., and smaller rivals Shinhan Financial Group Co. and Hana Financial Group Inc., offered bids to take over Samhwa Mutual Savings Bank, the sources said.

State-run deposit insurer Korea Deposit Insurance Corp. is in the process of finding a new owner for the distressed savings bank after the financial regulator Financial Services Commission suspended its operations a month earlier due to its capital shortages.

The state deposit insurer plans to pick a final preferred bidder for Samhwa on Feb. 18 after reviewing the bidders' price offers.

The business suspension came as part of the FSC's accelerating efforts to weed out troubled savings banks and restructure the industry, which is beleaguered by growing insolvent project financing loans.

The FSC wants the country's bigger commercial banks to take over some of the ailing savings banks in order to restructure the sector.