KEB Hana Bank

KEB was established as a government-owned specialized foreign exchange bank in 1967. In December 1989, it was privatized following the repeal of the Korea Exchange Bank Act and became a private commercial bank. In 1994, KEB was listed on the Korea Stock Exchange. During the 1997 Asian financial crisis, the bank faced financial restraints which limited its growth opportunities although it continued to operate without government assistance. In July 1998, Commerzbank, a leading German bank, became a major shareholder of KEB following a capital investment of KRW 350.0 billion (US $285.7 million). In January 1999, KEB merged with its merchant banking subsidiary - Korea International Merchant Bank. In October 2003, Lone Star, a US private equity firm, became the largest shareholder of the bank following its acquisition of 50.5% stake from Commerzbank. In March 2004, KEB Credit Services Co. Ltd., the bank’s former credit card subsidiary, was merged with KEB in response to setbacks in the Korean credit card market. In 2004, KEB sold its US-based subsidiary Pacific Union Bank to Hanmi Financial Corporation, a holding company of Los Angeles-based Hanmi Bank. In the same year, the bank liquidated its subsidiary KEB Ireland Ltd. In May 2006, Lone Star bought total 14.1% stake in KEB from Commerzbank and Export-Import Bank of Korea, a state-run lender, increasing its holding to 64.62%. In June 2007, Lone Star sold 13.6% interest in KEB to several buyers including South Korea’s Hana Financial Group, reducing its stake to currently 51.02%.