From the Front Lines At Seoul Bank: Restructuring and Reprivatization

IMF Working Papers, December 1, 2003

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Soon after Korea agreed to an IMF-supported program, Seoul Bank and Korea First Bank were nationalized through an injection of public funds by the government.
The two banks were singled out early in the IMF-supported program to be sold to foreign investors.
Korea First Bank was sold to foreign investors at the end of 1999.
Seoul Bank remained a government-owned bank, managed by a team of professionals recruited from outside of the traditional banking sector.
The paper describes the restructuring of Seoul Bank by the new management team between June 2000 and October 2002, when the bank was sold to Hana Bank in a merger transaction.

Bank nationalization and use of public funds to stabilize the banking sector.
Early program strategy to privatize selected banks via sale to foreign investors.
Management-led restructuring of a government-owned bank by professionals from outside traditional banking.
Final outcome: sale/merger of Seoul Bank with Hana Bank in October 2002.

IMF Working Papers — From the Front Lines At Seoul Bank: Restructuring and Reprivatization