Seoul Bank
Seoul Bank (Korean: 서울은행), known from 1976 to 1995 as Seoul Trust Bank (Korean: 서울신탁은행), was a major bank in South Korea, originally established as a regional bank in 1959. It was determined to be insolvent during the 1997 Asian financial crisis and was taken over by the Korean authorities, then merged into Hana Bank.
Overview
[edit]Seoul Bank was established in December 1959 as part of the Bank of Korea's policy of favoring the creation of regional banks across the country. As such, its activity was initially concentrated in the Seoul Metropolitan Area. It soon expanded beyond that remit, however, by opening a branch in 1962 in the central Nampo-dong neighborhood of Busan.
In August 1976, Seoul Bank absorbed Korea Trust Bank,[1]: 9 and changed its name to Seoul Trust Bank. It kept that name for nearly two decades before changing it back to Seoul Bank in June 1995.
In December 1997, the Korean government took over Seoul Bank after it had been determined to be insolvent, diluting the existing shareholders by a factor of 8 to 1 under targeted emergency legislation. As a consequence, the government together with the recently established Korea Deposit Insurance Corporation held a combined equity stake of about 94 percent, similar to the simultaneously rescued Korea First Bank.[1]: 33
The government started a process to sell Seoul Bank in 1998.[2] In August 2002, it was announced that Seoul Bank would be merged with Hana Bank, as the latter had been selected in a competitive bidding process against Lone Star Funds.[3]
See also
[edit]References
[edit]- ^ a b Tomás J. T. Baliño & Angel Ubide (1 March 1999), The Korean Financial Crisis of 1997—A Strategy of Financial Sector Reform, Washington DC: The Korean Financial Crisis of 1997
- ^ "Korean Government Signs MOU with Newbridge Capital". Financial Services Commission. 31 December 1998.
- ^ Steven Irvine (19 August 2002). "Hana knows its got Seoul". FinanceAsia.
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