Chairman Kim Jung-tai of Hana Financial Group and President Kim Han-jo of Korea Exchange Bank and other key executives walk into an auditorium  where a ceremony took place on Aug. 7 to officially announce the launching of the KEB Hana Bank, following the merger of Korea Exchange Bank and Hana Bank, which was managed by the HFG.

Chairman Kim Jung-tai of HFG, 3rd R, and President Kim Han-jo of KEB, left, join the leaders of the KEB labor union holding the copies of signed agreement thrashed out between KEB management led by Chairman Kim and KEB union leaders.(Photos:Hana Financial Group)

KEB Hana Bank put its new name board up, combining the names of the two merged banks Hana and Korea Exchange Bank (KEB). Shareholders of the two banks approved the merger in their respective meetings on Aug. 7.

The Hana Financial Group, led by Chairman Kim Jung-tai, decided to name the new bank KEB Hana Bank, with KEB coming before Hana Bank in a green background color, which used to be the color for Hana Bank.  Vice President Ham Young-joo of Hasna Bank has been designated as the new CEO of KEB Hana Bank effective Sept.1 and pending the shareholders approval.

The board of directors for the new bank has also been organized and the new board named Chairman Kim Jung-tai as a member of the board. Others include President Kim Byeong-ho of Hana Bank; and Vice President Ham Young-joo of Hana Bank Chungcheong Headquarters; and Auditor Kim Gwang-sik of Hana Bank.  

Auditor Kim Gwang-sik of Hana Bank will take over as the auditor for the bank. KEB Hana Bank also named new outside directors, including Professor Chung Young-rok, professor of the Seoul National University International Graduate School, and an outside director for Hana Bank.

The Hana Financial Group will reorganize the organization of the new bank either through mergers and closures of some departments, with around 10 executive positions to be eliminated.

The new bank’s head office will be located at the KEB building in Eulzi-ro, Seoul and Hana Bank’s former head office in Jong-ro, Seoul, will be used as the second head office building for the new bank.

Hana Financial Group has submitted an application for the merger of the two banks along with the organization of the new bank to the Financial Service Commission for approval on Aug. 10.  

The CEO of the new bank will be named at the end of August among candidates led by Chairman Kim Jung-tai of the Hana Financial Group, who might double as the CEO of the new bank for the time being. Other candidates include President Kim Han-jo of KEB, President Kim Byeong-ho of Hana Bank, and Vice President Ham Young-joo of Hana Bank, among others. Chairman Kim was said to have told the leading executives of the financial group that he has no intention to be the CEO of the new bank.

The official reports on the assets of the two banks showed Hana Bank’s assets totaled 172 trillion won while KEB’s assets totaled 112 trillion won, bringing the new entity’s total assets to 284.8 trillion won. 

The two banks paid merger bonuses to their officers and employees amounting to 200 percent of their basic monthly salaries; 100 percent paid already at the end of July, while the rest will be paid on Sept. 1, the official opening of the new bank.