[Alpha Biz=(Chicago) Reporter Kim Jisun] Sangsangin Savings Bank and Sangsangin Plus Savings Bank, affiliated with Sangsangin, the seventh-largest asset-based industry, are likely to be put up for sale.

Judging that there is a problem with the eligibility of a major shareholder, the financial authorities ordered the sale of Sangsangin, a major shareholder, to be reduced to less than 10 percent within six months. Imagination cannot exercise more than 10% of voting rights in the future.

According to the Financial Services Commission on the 4th, the Financial Services Commission held a regular meeting later in the day and decided to order the sale of stakes in two Sangsangin savings banks. Sangsangin Savings Bank and Sangsangin Plus Savings Bank are 100% owned by Sangsangin, and Sangsangin's major shareholder is CEO Yoo Joon-won, who holds a 23.3% stake.

Financial authorities imposed heavy penalties on two savings banks in December 2019. They include allegations that Sangsangin falsely reported and conducted a formal public sale so that major shareholders could acquire convertible bonds at low prices while failing to maintain the mandatory ratio of credit offerings. A fine of 1.521 billion won was also imposed for illegal loans. CEO Yoo was suspended for three months.

Under the Mutual Savings Bank Act, the Financial Services Commission may order the disposal of more than 10% of shares with voting rights held by major shareholders if it fails to comply with the order to meet the eligibility of major shareholders.

With this decision, Sangsangin will have to sell at least 90% of its 100% stake by April next year. In addition, Sangsangin will not be able to exercise voting rights with a stake of more than 10% in the future. In fact, the qualification as a major shareholder will be suspended from this day.

The total assets of Sangsangin Savings Bank and Sangsangin Plus Savings Bank are 3.299 trillion won and 1.58 trillion won, respectively, as of the end of June. Combined, it ranks seventh in the industry with 4.8796 trillion won.

Sangsangin acquired Sangsangin Plus Savings Bank for 9.8 billion won in August 2012 and Sangsangin Savings Bank for 5 billion won in January 2016, respectively. As of the end of June, the book value was 38.562 billion won and 31.478 billion won, respectively.

 

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