Citibank’s Takeover of Hanmi Bank Confirmed

As the takeover of Hanmi Bank by the US-based Citibank has been practically confirmed, fluctuation of the financial world in Korea is strongly being expected.

Faced with the impending invasion of Citibank, one of the world’s biggest banks, the commercial banks in Korea are bent on preparing emergency countermeasures for.

A government official revealed on February 20 that “we have known Citibank will officially address their takeover of the Hanmi Bank at the earliest on February 21. But due to several details of the related procedures, there is a chance the addressing time will be delayed over to the next week.”

In addition, the president of Hanmi Bank, Ha Young-gu has disclosed that “[In accordance with Citibank’s takeover of Hanmi] We need to go through the process of reporting to the heavy stockholders and resolution of the governing council, but we will release it when all the necessary procedures are completed,” hinting that the takeover has been virtually completed.

In accordance with the financial world, Citibank had planned that after its takeover of Hanmi, it would abolish its listing in the stock exchange by purchasing the stocks of Hanmi distributed to the small shareholders in order to convert it to the “Korean branch of Citibank.”

If the plan of Citibank is smoothly conducted, Citibank, which currently possesses 12 branches in Korea, will merge with the 225 branch offices of Hanmi Bank to organize a nationwide banking network in Korea. The biggest bank in the world comes to compete with the commercial banks in Korea on an equal footing.

The commercial banks in Korea, which will have to compete to survive with Citibank, which has the world’s best credit management and asset application skill, are very much keyed up.

The two out-sized banks, Kookmin and Woori Bank, are expected to accelerate their phases of service improvement and internal system consolidation in order to defend their customers from the penetration of Citibank into the Korean banking world.

“When Citibank earnestly makes inroads in Korea, there will be damage in the fields such as the private banking market, which is aimed at high grade customers,” remarked Kim Jung-tae, the president of Kookmin Bank, adding “But, it is worth confronting, in my viewpoint, because, predicting this kind of situation several years ago, the Korean banks have prepared so far.”

In addition, because Citigroup, the mother company of Citibank, has already organized a categorical commercial network of banking, stock brokerage, and insurance services, it is assumed that the secondary financial world, including the internal insurance and stock exchange will be influenced by the “Citibank storm.”

Also, the M&A movement in the financial world will accelerate, such as Korea First Bank and Woori Financial Group, which are both well on their way towards disposing of its stock, and the takeover competition for the Foreign Exchange Bank, which is regarded as a potential article for sale.