Industrial Bank of Korea Courts Commercial Rival

The head of the Industrial Bank of Korea went courting Tuesday; the object of his affections was the Korea Exchange Bank.

Bank President Lee Kyung-jae said that the merger would be advantageous for both banks. "Korea Exchange Bank is noted for its strength in corporate financing to large companies and international financing operations, Mr. Lee said. "The Industrial Bank of Korea specializes in supporting small and medium-sized companies so a consolidation between two banks could take advantage of business efficiencies," the bank chief said. The Industrial Bank of Korea is a government-owned specialized bank set up for the purpose of providing financial support for industrial development.

"Merger talks with Korea Exchange Bank have not taken place yet, but Korea Exchange Bank announced Monday that it will seek a partner, so I expect talks will start soon," he said, adding that other banks could also be possible marriage partners.

The banker said he is also considering the establishment of a financial holding company. The government, Korea Development Bank and Korea Investment Trust Management & Securities own 97.8 percent of Industrial Bank of Korea.

by Cheong Chul-gun