SEOUL: South Korea's financial regulator on Wednesday gave the green light for Hana Financial Group to combine its two flagship bank units, clearing the way for the creation of the country's largest lender by assets.
Hana Financial, the country's third-largest banking group, has wanted to merge Hana Bank and Korea Exchange Bank (KEB) since it acquired KEB from a US buyout fund in 2012.
The green light from the Financial Services Commission came after shareholders and KEB's labour union agreed on the proposed merger.
The union had opposed the deal, demanding Hana Financial deliver on its promise to run KEB as an independent entity for five years, but changed its tune last week after receiving pledges to safeguard jobs.
The banking group has pledged to help the consolidated bank, which will be launched in September, expand its presence in the global banking industry.
Hana Bank has an edge in private banking and KEB is known for its foreign exchange dealings. Together they have 945 branches and operate in 24 countries, with their combined assets standing at 290 trillion won ($256 billion).
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