62,300 shares sold on open market

Disposal follows lifting of public-institution asset-sale freeze

Bank ends 20-year equity tie with Korea Investment

An exterior view of Industrial Bank of Korea [Industrial Bank of Korea]
An exterior view of Industrial Bank of Korea [Industrial Bank of Korea]

Industrial Bank of Korea has sold its entire remaining stake in Korea Investment Holdings after the government lifted a blanket freeze on asset disposals by public institutions.

According to investment banking industry sources, IBK sold 62,300 shares of Korea Investment Holdings on the open market on Friday. The bank began the sale on Oct. 7 and completed the process within four days.

IBK had acquired 1.25 million shares of Korea Investment Holdings across two transactions in 2005 and 2006, following a strategic MOU with Korea Investment Holdings aimed at building an integrated financial services platform and broadening its revenue base.

After IBK Securities was established and cooperation with Korea Investment Holdings failed to materialize as originally envisioned, IBK decided to divest the stake.

IBK began moving to sell the Korea Investment Holdings shares in September last year, but halted the process in November of that year after President Lee Jae Myung ordered a suspension of government asset sales.

The sale resumed after the Prime Minister's Office lifted the freeze. The Financial Services Commission recently convened a sale review committee to clear the way for the transaction, according to sources.

With the full divestiture complete, the two institutions have unwound an equity relationship that lasted more than 20 years.

Other financial public institutions are expected to accelerate their own asset sales as well. IBK currently holds a stake in Korea Financial Safety alongside several commercial banks.


hyuk@heraldcorp.com