KEB, Hanvit likely to merge soon

It is expected that the framework of a financial holding company to beestablished led by Hanvit Bank will be decided on Tuesday.

Commerz Bank of Germany, the largest foreign shareholder of Korea Exchange Bank (KEB), will hold a meeting of top executives Tuesday and inform of its decision about this matter to the Korean government by Wednesday. It is likely that Commerz Bank will accommodate KEB's integration into the projected holding company by suggesting conditions to the government.

Kookmin Bank and Housing & Commercial Bank (H&CB) also are reviewing a merger between the two banks, and trade unions of the two banks are strongly protesting such a bid.

The Financial Supervisory Commission (FSC) informed Peace Bank, Kyongnam Bank and Kwangju Bank, which will get public funds from the government, to make a decision whether they will participate in the Hanvit-led holding company.

The FSC is planning to hold a meeting Tuesday to finalize establishment of the holding company led by Hanvit Bank upon receipt of reply from these banks.