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KDIC Eases Bidding Conditions for Mutual Savings Bank

June 05, 2012 14:05|July 04, 2012 11:04
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Korea Deposit Insurance Corp. (KDIC) eased bidding conditions for four mutual savings banks—Solomon, Korea, Mirae and Hanju—which Financial Supervisory Commission ordered to halt operations for six months on May 6.

In its bidding notice, KDIC said that the minimum asset amount of a bidder for Solomon, Korea, Mirae should exceed 1 trillion won, a level much lower than 2 trillion won which KDIC took as a standard previously. KDIC didn’t comment any minimum asset standard for Hanju, whose asset amount is relatively small.

“As selling the four mutual savings banks in a package deal would be burdensome for a bidder, we decided to sell them one by one,” said a KDIC official, adding a bidder can participate in tenders for multiple savings banks.

Solomon, the biggest one among the four mutual savings banks, has an asset of 4.97 trillion won with 14 branch offices, while Korea and Mirae have an asset of 2.24 trillion won and 1.76 trillion won, respectively.

KDIC will receive letter of intent until June 14 and will hold the bidding in mid-July under the goal of completing the sale process till the end of August.