Merger Ratio Set at 1 Cho Hung Share to 9.587 Kangwon Shares.

Cho Hung Bank and Kangwon Bank announced their official merger on May 10. The merged bank will become the third largest commercial bank in Korea, in terms of capital, behind Hanvit Bank and Kookmin Bank.
Cho Hung's president and CEO, Wee Sung Bok, and
Kangwon Bank's president, Min Chang Ki, agreed on the details, of which the merger ratio was set at one Cho Hung Bank share to 9.587 Kangwon Bank shares.
The merger will be effective from July 16 and the new operation will start on July 19.
Hyundai Group will accept 3.94 percent of the new bank's total stakes. Hyundai, a major shareholder of Kangwon Bank, had claimed to hold at least a 6 percent stake in the new bank, but the present related law prohibits business groups from owning more than a 4 percent stake in any bank.
The new bank, adopting a new logo 'CHB' after Cho Hung Bank's initials, will have a combined capital of 3.049 trillion won, total assets of 62.7 trillion won, with a BIS capital adequacy ratio of 12.36 percent.
Cho Hung had already merged with Chung Buk Bank earlier this month.

Shang-bok Shim : simsb@joongang.co.kr