KDIC set to sell 7 ailing savings banks

Korea Deposit Insurance Corp. plans to begin the bidding process for seven suspended savings banks this week as part of efforts to restructure the embattled savings banking sector.

The Financial Services Commission, Korea's financial regulator, has suspended business operations of eight savings banks so far this year for their capital shortages, with one savings bank sold in March to second-biggest financial group Woori Finance Holdings.

In order to find new owners for the remaining seven savings banks, the Korea Deposit Insurance Corp. may announce an invitation for bids on Thursday or Friday, the deposit insurance agency said.

The process to determine conditions for bidding for the seven savings banks is still underway, but we may be able to announce the notice for pubic tenders within this week," a KDIC official said.

"We decided to sell them to big-cap financial companies, but the biddings will not be limited to giant financial holding firms only," he said.

The full story is available at yonhapnews.co.kr.