KTB Investment & Securities Acquires Stake in Eugene Savings Bank

Entry into the Retail Finance Market
Synergy Expected through Collaboration Among Affiliates

[Asia Economy Reporter Minji Lee] KTB Investment & Securities announced on the 14th that its board of directors has resolved to acquire a 30% stake in Yujin SB Holdings.

KTB Investment & Securities plans to acquire 12.93 million RCPS (Redeemable Convertible Preferred Shares) of Yujin SB Holdings held by Yujin Jesaho Hercules PEF. Yujin SB Holdings owns 100% of Yujin Savings Bank. The acquisition amount is 73.2 billion KRW, but the final purchase price will be confirmed by reflecting the amount adjusted later during the due diligence results and purchase price negotiation process. After conducting due diligence according to the acquisition procedure, KTB plans to apply for major shareholder change approval from the financial authorities.

Established in 1972, Yujin Savings Bank is a large savings bank ranked 7th in the industry with total assets of 2.9842 trillion KRW (as of the end of 2020), operating four branches including the Gangnam headquarters, Mokdong, Songpa, and Bundang. Last year, its net income was 51.9 billion KRW, ranking 5th in the industry, and its BIS ratio is 16.3%, significantly exceeding the appropriate standard.

KTB Financial Group plans to expand its service area to the retail finance sector through the acquisition of Yujin Savings Bank. By adding the savings bank to its existing structure of securities, asset management, network (VC), PE, and credit information, it can diversify its revenue structure. It also enables synergy creation through collaboration among group affiliates.