The scheduled sale date for Sangsangin Savings Bank is expected to be postponed again. Although it has already been delayed twice since March, the Financial Supervisory Service will require additional time to approve the share acquisition. However, contrary to concerns raised by some, KBI Group's acquisition of Sangsangin Savings Bank itself appears feasible without major obstacles.
According to financial industry sources on the 31st, the Financial Supervisory Service is currently reviewing KBI Group's application for approval to acquire shares in Sangsangin Savings Bank. The statutory processing period for approving savings bank share acquisitions is up to 60 days. Since periods for supplementing materials are excluded from this 60-day window, the actual process will likely take longer.
The sale of Sangsangin Savings Bank is expected to be delayed beyond the date disclosed by Sangsangin. Previously, Sangsangin disclosed that if approval for share acquisition by the Financial Services Commission is not obtained by August 31 or if it is confirmed that such approval cannot be granted, resulting in the transaction not being finalized, the parties may terminate the stock transfer agreement.
Sangsangin has already postponed the transaction conclusion date twice. When the initial public disclosure regarding the sale of Sangsangin Savings Bank was made on October 31 last year, the planned share disposal date was set for March 31 this year. However, the deadline was first delayed by one month to April 30, and then postponed again by four months to August 31.
KBI Group is estimated to have submitted its approval application to the financial authorities in June or July last year. Based on this timeline, the review by the financial authorities could proceed into next month or be completed by October.
KBI Group's acquisition of Sangsangin Savings Bank is expected to proceed without major difficulties. The delay in submitting the share acquisition approval application is presumed to stem from coordination with the financial authorities regarding Sangsangin Savings Bank's capital reinforcement plan.
Sangsangin Savings Bank, which received a corrective order from the Financial Services Commission, has recently recovered its performance but requires additional capital injection for normalization. As of the first half of this year, Sangsangin Savings Bank's delinquency rate stood at 14.23%, more than double the industry average of 6.26%. The ratio of non-performing loans to total loans was also 18.51%, significantly exceeding the industry average of 8.16%.
According to the Mutual Savings Bank Supervision Regulations, a legal entity seeking to acquire a savings bank must maintain a debt ratio of no more than 200% as of the end of the fiscal year. The funds used for acquisition cannot be borrowed. Additionally, there should have been no defaults or violations of financial laws and regulations in the past five years. KBI Guksan Industry already received approval from the financial authorities last year to acquire shares in Raon Savings Bank, so issues such as defaults or violations of financial laws are not expected to arise.
Furthermore, as of the end of last year, KBI Guksan Industry's total liabilities were 69.43 billion won, and its equity was 382.063 billion won, resulting in a simple debt ratio of approximately 18%.
The transaction conclusion date for Sangsangin Savings Bank, currently scheduled for the 31st, is expected to be extended through additional public disclosure. A representative from Sangsangin stated that it would be difficult to provide an answer regarding the extension of the transaction conclusion date prior to the official disclosure.
A Financial Services Commission official stated, "The share acquisition approval deadline specified in the public disclosure pertains to the contractual terms between the two companies. The financial authorities will complete their review within the legally prescribed period."
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