KEB to sell properties to cut costs

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KEB to sell properties to cut costs

Korea’s No.1 commercial bank, KEB Hana Bank, is selling an apartment unit and an apartment building it owns for more than 3.6 billion won ($2.97 million) in a bid to cut costs after the mega merger of the Korea Exchange Bank (KEB) and Hana Bank last year.

The two properties - an apartment in Iksan, North Jeolla and a three-story residential building in Masan, South Gyeongsang - were used as residences for KEB employees who were dispatched to the regions.

Notification of the sale of the properties has been put on the electronic bidding system of Korea Asset Management Corporation. The minimum price for the Iksan apartment is set at 150 million won, and the Masan building is set at 3.48 billion won.

The first round of bidding will open on Thursday.

“The sale is aimed at adjusting the real estate portfolio of the two banks after they are merged and reducing costs by streamlining idle properties,” said a bank spokesman.

The latest sales come after the bank decided to sell its 16-story office building, where Kim Jung-tai, chairman of Hana Financial Group, still works, in Euljiro 2-ga. It is one of the most expensive properties in central Seoul. The building price is estimated at between 150 billion won and 200 billion won.

A new 26-story headquarters building of the bank is scheduled to be completed in Euljiro 1-ga by June 2016.

Employees of the two banks are scattered in different buildings, including the former headquarters of KEB in Myeongdong and one of Gran Seoul towers in Jongno.

“Before moving to the new headquarters, we are planning to minimize unnecessary properties,” the spokesman said. “We are also considering selling one of training centers of Hana Bank in Yongin, Gyeonggi.”


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