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[Alpha Biz=(Chicago) Reporter Kim Jisun] As the financial authorities issued "orders to meet the eligibility of major shareholders" to Sangsangin Savings Bank and Sangsangin Plus Savings Bank on the 30th, the two savings banks will virtually take steps to sell.
If a savings bank, which ranks seventh in the industry in terms of total assets, goes on sale in the market, it is expected to open a big chapter in the savings bank industry's mergers and acquisitions (M&A).
According to the financial authorities, the Financial Services Commission held a regular meeting on the same day and issued an order to meet the eligibility of major shareholders to the two savings banks. According to this order, Sangsangin CEO Yoo Joon-won, the real owner of Sangsangin and Sangsangin Plus Savings Bank, must resolve the problem within two weeks to maintain his status as a major shareholder. The two savings banks are 100% owned by Sangsangin, and Sangsangin is the largest shareholder with a 23.33% stake owned by CEO Yoo. If the problem is not resolved within the period, the Financial Services Commission may order the sale of the majority shareholder's stake within six months.
The decision comes after the Supreme Court ruled in favor of the Financial Services Commission in a lawsuit filed by CEO Yoo and two savings banks against the Financial Services Commission in May this year to cancel the heavy punishment. Earlier in 2019, the Financial Services Commission imposed heavy penalties on Sangsangin and Sangsangin Plus Savings Bank and CEO Yoo for non-compliance with mandatory loan ratios in business areas, false reports, and illegal loans. A total of 1.521 billion won in fines were imposed on the two savings banks, while Yoo was suspended for three months.
In order for CEO Yoo to retain his status as a major shareholder, the financial sector believes that the past heavy punishment issue must be resolved within two weeks, but it is virtually impossible to resolve it in a short period of time. In the end, if a major shareholder's stake is forced to be disposed of, large savings banks will be put up for sale.
In addition, according to the savings bank industry, Hanwha Group is currently selling Hanwha Savings Bank. Private equity funds (PEF) and Woori Financial Group are mentioned as companies to take over savings banks.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
