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KDB Gives Positive Consideration to Sell KDB Daewoo Securities to Overseas Firms
International Business
KDB Gives Positive Consideration to Sell KDB Daewoo Securities to Overseas Firms
  • By Jung Suk-yee
  • August 20, 2015, 07:30
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Korea Development Bank (KDB) is giving positive consideration to sell KDB Daewoo Securities to overseas firms. Until now, the financial authorities and KDB have defined their theoretical positions with statements like “There will be no discrimination against foreign capital.” However, industry sources believe that it is very unlikely to sell one of the nation’s largest securities firms to overseas firms, due to a possible controversy over the outflow of national wealth. 

KDB announced on Aug. 19 that it will hold its board meeting on Aug. 24 to discuss the sales plan for financial subsidiaries, including KDB Daewoo Securities. In particular, it will review a case that Taiwan’s Yuanta Securities acquired Tongyang Securities last year in the board meeting, attracting attention.

An official from KDB said, “We asked KDB Daewoo Securities to submit a comprehensive analysis of Taiwan-based Yuanta Securities’ takeover of Tongyang Securities before the board meeting. This is to successfully complete the sale through the comprehensive review of the recent case.” Finance Investment industry sources interpret it as a signal that KDB can sell KDB Daewoo Securities to an overseas firm if it is well qualified.

Once the board of directors decides to sell KDB Daewoo Securities in this meeting, KDB will call for tenders to select advisors for the sale, such as financial, accounting, and legal advisors, establish a sale strategy through an actual inspection, and give a public notice of the sale at the end of next month or in early Oct. Then, when letters of intent (LOI) are accepted and preliminary bidding begun, actual inspection, main bidding, and the selection of preferred bidders are completed, KDB will be able to sign the sales contract as early as the end of this year or early next year.