Raon Savings Bank sold to KBI Gukin Industry... Financial Committee approves stock acquisition

[Financial News] Raon Savings Bank, which received a prompt corrective action from the financial authorities, is being sold to waste management company KBI Gukin Industry.
The Financial Services Commission announced on the 23rd that it held the 14th regular meeting and approved KBI Gukin Industry's acquisition of 60% of Raon Savings Bank's shares.
KBI Gukin Industry is a waste management company located in Gumi, Gyeongbuk. At the end of last year, it recorded total assets of 383.6 billion won, equity capital of 338.2 billion won, sales of 61.1 billion won, and net income of 31.8 billion won.
Previously, Raon Savings Bank had been implementing a management normalization plan after receiving a management improvement recommendation due to deteriorating soundness indicators during the real estate project financing (PF) normalization process.
The financial authorities thoroughly reviewed the qualification requirements, including the debt ratio and criminal record, of KBI Gukin Industry, which will become the major shareholder through the stock acquisition, and its major shareholders. They also deemed the capital increase plan for the management normalization of Raon Savings Bank appropriate.
The Financial Services Commission plans to terminate the management improvement recommendation imposed through the resolution of the Financial Services Commission if it is confirmed that Raon Savings Bank's management status has sufficiently improved through capital increase and disposal of non-performing assets.
The Financial Services Commission stated, "This is the first case where the market's autonomous restructuring function has operated in relation to local savings banks that have recently been subjected to prompt corrective action," and "We will closely manage savings banks under prompt corrective action to swiftly achieve management normalization, and continue institutional support to activate proactive and autonomous restructuring functions."
 

sjmary@fnnews.com Seo Hyejin Reporter