Cho Hung to Merge with Kangwon and Chungbuk Banks

The Financial Supervisory Commission(FSC) will approve a three-way merger, if officially asked so, between Cho Hung, Kangwon and Chungbuk Banks. It appears that Cho Hung Bank therefore will not need further staff layoffs or additional restructuring measures to survive.
Lee Hun Jae, the chief of FSC on November 1 said, 'Cho Hung will merge with two smaller banks which had already decided to be amalgamated, but this won't be the case with Korea Exchange, Korea First, or Seoul Bank.' This probably means that if Cho Hung Bank should present a proposal to unite with Kangwon and Chungchung Bank, the government will not oppose that banking realignment.
Cho Hung will submit a report outlining their efforts to survive through restructuring and inducing foreign capital to the government some time next week.
The FSC is still insisting on the sale of both Seoul and Korea First Banks to foreign companies.
Cho Hung will more than likely have to receive financial support from the government after the merger is completed.