[Click e-Stock] "Douzone Bizon Expected to Create Synergy with Acquisition of Jeju Bank Stake"

On April 21, Hanwha Investment & Securities stated that Douzone Bizon’s acquisition of a stake in Jeju Bank is the best way to minimize the uncertainties and volatility inherent in internet banking, such as large-scale capital investments.

Douzone Bizon has decided to acquire a 14.99% stake in Jeju Bank for 57 billion won by participating in a third-party paid-in capital increase. This is the maximum level at which a non-financial company can invest in a regional bank under current law. The largest shareholder of Jeju Bank is Shinhan Financial Group. The digital business platform that Shinhan Financial Group and Douzone Bizon have been preparing for several years is expected to expand significantly.

Kim So-hye, a researcher at Hanwha Investment & Securities, analyzed, "Compared to the previous strategy of directly entering the fourth internet-only bank to promote the data finance business, the investment cost is reduced to one-tenth," adding, "They chose a method that minimizes both time and risk."

She continued, "If they had pursued internet banking, Douzone Bizon would have inevitably spent about 600 billion to 700 billion won out of an estimated 2 trillion won in capital," and added, "It would have realistically taken several years to surpass the break-even point (BEP)."

She emphasized, "Jeju Bank holds various licenses that internet banks can have," and stated, "The entire 57 billion won will be invested in the digital banking business." She also expressed expectations that "the 'banking' component, the final piece of Douzone Bizon's integrated ERP system, will be realized."