## From the Front Lines At Seoul Bank: Restructuring and Reprivatization

_IMF Working Papers, December 1, 2003_

## Source details

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## Bibliographic details
- Authors: Chungwon Kang
- Published: December 1, 2003
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451875676.001

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### Summary
- 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.

### Key findings and themes
- 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.

### Subjects and keywords
- Subjects:
  - Bank credit
  - Bank resolution
  - Banking
  - Commercial banks
  - Credit
  - Financial crises
  - Financial institutions
  - Loans
  - Money
  - Nonperforming loans
- Keywords:
  - balance sheet
  - bank management
  - Bank resolution
  - bank restructuring
  - bank share
  - Commercial banks
  - Credit
  - financial support
  - Global
  - government shareholder
  - holding company
  - Korea
  - labor-government agreement
  - loan portfolio
  - Loans
  - management improvement plan
  - managing director
  - Nonperforming loans
  - operating income
  - public funds
  - WP

### Publication and metadata
- Author: Chungwon Kang
- Date: December 1, 2003
- Series: Working Paper No. 2003/235
- Issue: 235
- Volume: 2003
- Pages: 39
- DOI: https://doi.org/10.5089/9781451875676.001
- Stock No: WPIEA2352003
- ISBN: 9781451875676
- ISSN: 1018-5941

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

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/from-the-front-lines-at-seoul-bank-restructuring-and-reprivatization-16984_