Standard Chartered has entered into an agreement to acquire Yeahreum Mutual Savings Bank, to enter the mutual savings bank market in Korea ahead of the impending liberalization of the financial sector through the financial investment services and capital market act.
Yeahreum will enhance Standard Chartered’s existing Korean consumer finance operations, broaden the current product offering and provide a presence in the economically important Jeonnam and Kyunggi provinces.
Standard Chartered has reported that the acquisition fits well into its overall strategy to increase the breadth of its franchise in Korea as well its general intent to seek capability enhancing acquisitions. The acquisition, which is subject to certain conditions, including regulatory approvals, is expected to be completed in the first quarter of 2008.
Mike DeNoma, group executive director responsible for consumer banking business at Standard Chartered, said: The acquisition of Yeahreum is a further step in our continuous investment program in Korea and is a sign of our commitment following the acquisitions of Korea First Bank in 2005 and A Brain in 2007. This broadens Standard Chartered’s customer base in one of our largest markets into a business segment with strong revenue growth and returns.