[Weekly Savings Banks] JT Savings Bank Plans Sale to Private Equity Fund... Labor Union Opposition Expected to Cause Difficulties and More

JT Savings Bank Headquarters, Seongnam-si, Gyeonggi-do

[Asia Economy Reporter Minyoung Kim] Two private equity funds have emerged as potential buyers in the bid to acquire the Japanese-affiliated JT Savings Bank.

According to financial circles on the 19th, two private equity funds, including Bankerstreet, submitted bids in the main auction held on the 15th for JT Savings Bank.

Domestic financial companies such as JB Financial Group and Korea Capital, which were considered strong contenders, reportedly did not participate in the main auction.

Bankerstreet, which is pursuing the acquisition, is a private equity fund established in 2018 by CEO Byungjoo Lee and Kane Yang, former chairman of Hong Kong Asset Management (HKAM) and chairman of the board.

Last year, it acquired Hi Investment & Securities (now VI Financial Investment) and Hi Asset Management (now VI Asset Management) from DGB Financial Group.

Financial affiliates under Bankerstreet are also reported to have participated as co-executive partners in the JT Savings Bank bidding process.

The market expects the sale price to be decided in the range of 150 billion to 170 billion KRW, considering the net asset value of JT Savings Bank.

In June, the Japanese J Trust Group announced its intention to sell JT Savings Bank. This marks the sale attempt five years after acquiring Standard Chartered Savings Bank in 2015. J Trust operates JT Chin-Ae Savings Bank and JT Capital in Korea.

The company’s labor union opposes the sale to private equity funds, anticipating difficulties in the sale process. The National Office Financial Services Labor Union recently held a press conference stating, "As a result of continued unfair labor practices, the major shareholder is on the verge of a huge capital gain from the sale," and "We oppose the sale to loan companies or private equity funds."

SBI Savings Bank Steps Up to Help Abused Children

SBI Savings Bank has launched support for children who have suffered from abuse.

SBI Savings Bank announced it will operate the second program of its social contribution campaign, "We Are Special Cider."

This program is a social contribution activity that supports children who have been abused and those living in bankrupt families to grow up in better environments. It has signed agreements with Community Chest of Korea, Good Neighbors, and the Social Solidarity Bank.

It provides comprehensive psychological assessments and psychotherapy to abused children to minimize the aftereffects of abuse and help them regain emotional stability.

Additionally, it offers specialized support services related to child protection to the families of abused children. Through this, it aims to eliminate risk factors of abuse within the home and prevent recurrence, helping to create safer and happier households.

Jinmoon Jung, CEO of SBI Savings Bank, said, "We will actively support our neighbors in need around us so that they can live in better environments and grow as members of society."

OK Financial Group’s Unique Donation Campaign

OK Financial Group, which includes affiliates such as OK Savings Bank and OK Capital, is conducting the "OK Financial Group Together Campaign."

This campaign involves a "step donation" where all OK Financial employees participate, aiming to reach 100 million steps by the 13th of next month, after which a certain amount of money will be donated. An OK Financial official said, "Step donation simultaneously reduces the risk of COVID-19 infection and improves employees’ health, creating a 'two birds with one stone' effect," adding, "We will also increase participation and satisfaction by holding events such as prize giveaways."

Yoon Choi, Chairman of OK Financial, said, "Our non-face-to-face CSR activities started from the creative ideas and strong will to share among all employees," and added, "We will continue social contribution activities despite COVID-19 and fulfill our role as a financial institution for the common people."

BNK Savings Bank Signs MOU with Mugunghwa Trust

BNK Savings Bank recently announced that it signed a Memorandum of Understanding (MOU) with Mugunghwa Trust for "synergy creation and mutual growth."

Mugunghwa Trust is a real estate trust company ranked number one in trust orders and has recently stood out in the trust-based redevelopment market by winning multiple redevelopment projects.

The agreement, held at BNK Savings Bank’s headquarters in Dong-gu, Busan, was pursued to proactively respond to the rapidly changing real estate finance industry and to combine the information and know-how of both companies to enhance management efficiency.

Through this agreement, the two companies plan to collaborate on project financing (PF) loans, investments, and real estate trust services to provide customers with new forms of real estate financial services.

Sung Myunhwan, CEO of BNK Savings Bank, said, "We expect synergy from the MOU with Mugunghwa Trust, which has rich experience and expertise in real estate development projects," adding, "This agreement will strengthen flexibility and competitiveness in responding to changes in the financial market."