Hana appeals against ruling delaying its merger with KEB

Hana Financial Group has appealed the local court’s ruling to delay its merger with Korea Exchange Bank until after the end of the year’s first half.

An official from the group said Hana recently submitted a petition to the Seoul Central District Court against the Feb. 24 ruling that partially accepted an injunction submitted by KEB’s labor union to suspend the procedures of the merger that Hana has been pushing. After the ruling, Hana scrapped its plan to apply to the Financial Services Commission for the merger and all procedures for it have been tentatively stopped.

“We filed the appeal by making up some documents to explain the exceptional characteristics of the banking industry and the necessities of the merger,” an official from the group said. “We also reflected some changed situations, such as the KEB’s deficits in the fourth quarter of last year.”

If the court accepts the appeal, Hana could resume with the merger, but if not, the executives of the group should wait for the next three months to appeal the decision again.