Korean Banks Attract Foreign Capital

Korean banks succeeded in attracting large-scale foreign capital.
Kookmin Bank anounced that it finished negotiations with the American investment bank Goldman Sachs regarding share offerings worth 500 million dollars. A memorandum of understanding(MOU) for the investment will be signed on April 12.
Goldman Sachs will purchase 300 million dollars of new shares and 200 million dollars of convertible bonds(CB). The price of each new share was set at 12,000 won.
As a result of the deal, Goldman Sachs stake in Kookmin Bank will total 11.2 percent (17.2 percent including CBs) and it will become the top share holder, outdoing the Korean government's 8.2 percent.
Goldman Sach's will not take part in the bank's operations. However, Goldman Sachs will nominate one non-standing executive secretary at next year's general meeting of shareholders.
Shinhan Bank stated on April 10 that it succeeded in issuing 400 million dollars in overseas depository receipts(DR), the first civil corporation to do so since the October 97 foreign exchange crisis.
The price of the DRs is 12,100 won per share and the money will be received on April 16.
Shinhan Bank added that by attracting 400 million dollars in foreign capital it's BIS equity capital ratio will go up to 16.5 percent.

Jooan Kang : jooan@joongang.co.kr