[INTERVIEW]Hana Bank Opts To Remain Single

The top manager of Hana Bank, one of Korea's most profitable and healthy commercial bank, has affirmed that the bank is not seeking a merger with another bank.

"We don't have any merger plans at present," said Kim Seung-yu, president and chief executive officer of Hana Bank, in a recent interview with JoongAng Ilbo. He added that the bank will seek to operate independently.

"I have learned through last year's experience that a merger is not a simple task and that integrating different corporate cultures is more important than any other thing," Mr. Kim said, referring to a plan to merge with KorAm Bank, which fell through late last year.

Instead, he said, Hana Bank plans to attract foreign capital by selling a 20 to 25 percent stake in the company to overseas investors.

He said the bank will invite investments from financial institutions from which the bank can learn advanced banking knowhow, ruling out any investments by equity funds seeking short-term profits. It is easier to attract money from short-term investment funds but they are usually not interested in the long-term development of the bank, he explained.

Mr. Kim said Hana Bank will seek foreign investments when its share price reaches 12,000 won ($9.20). Its stock price closed at 8,600 won Friday, up more than 43 percent from two months earlier. Despite the sharp surge, he said he believed the bank's shares were still too undervalued, considering its book value per share of 12,000 won.

Hana Bank has tried to raise its intrinsic value since its marriage with KorAm Bank failed late last year, he said. As a result, the bank's operating profits jumped 90 percent to 460 billion won ($353 million) at the end of last month compared with the first five months of 2000, and its net profits soared seven-fold to 130 billion won.

To diversify risks from asset management the bank plans to slash its loan exposure to large companies to 30 percent by the end of this year from the peak of 70 percent, while expanding exposure to small and medium businesses to 40 percent from 31 percent as of the end of 2000.

"We will activate investment banking business, building on our knowhow," Mr. Kim remarked.

Founded in 1971 as a short-term investment institution, Hana Bank has become one of Korea's five major commercial banks. It marks its 30th anniversary Monday.

by Chung Chul-geun