[Reporter`s View] One Word for Deputy Minister

The Hana Bank has had grappled on the takeover of the convertible bonds (CB) issued by the Hyundai Engineering and Construction (HEC) with the Korea Exchange Bank (KEB) with which the HEC has a business relationship.

The Hana Bank refused the KEB`s suggestion that the creditors would purchase the CBs which are not converted to stock. It means that the Hana Bank can no longer provide the fund for the HEC.

Kim Seung-Yoo, the president of the Hana Bank, told in the press conference on 25th that ``this issue was not included in the plan for the debt coordination established by the creditors on March. Since the controlling shareholders, the Allianz and the International Finance Corporation, have opposed to the takeover of CBs, the Hana Bank can hardly participate in it``. The financial circles interpreted president Kim`s remarks as requesting for no further discussion on this issue.

An official of a bank told that ``the attitude of the Hana Bank is justifiable in the situation that the unprofitable banks can be expelled from the business``.

However, the Hana Bank who has taken a firm stance suddenly announced to purchase the CBs. Why was the president`s open remarks overturned just the next day?

The financial circles explained that the sudden conversion of the Hana Bank was considerably influenced by the remarks of Deputy Prime Minister Jin Nyum in the 30th anniversary memorial reception of the Hana Bank on 25th.

Jin said that ``I asked to then-president Yoon Byung-Chul what `Hana` meant when the Korea Investment & Finance Co. resumed as the Hana Bank. Yoon answered the question, saying that the Hana Bank would be a top bank and would try to be one with the customers and people as well as the national economy. Recently, our economy has suffered from various internal and external environments. I hope the Hana Bank will actively contribute to revive the nation`s economy, recalling the original purpose of the Hana Bank when it was founded``.

Nobody can miss Jin`s intention. In fact, he wanted the Hana Bank to help the HEC. ``If the decision making of the commercial banks were overturned by a word of the deputy prime minister continuously, then they would fall into the insolvent banks who should receive the public funds,`` said an officer of the Hana Bank.

tigera@donga.com