Published : Jan. 9, 2015 - 20:25
The merger talks between Hana Bank and Korea Exchange Bank faced another hurdle Friday as the KEB union demanded that Hana Financial first confirm the detailed process of the merger in advance ― a term that the latter will not easily embrace.
The two banks under the flag of Hana Financial Group have sought to merge for months to compete with the nation’s major banks.
“We no longer have the time to initiate a new controversial issue,” said a spokesperson of Hana Financial.
The Hana Financial Group building reflected in the window of a KEB office in Seoul. (Yonhap)
With no compromise between the two sides in sight, the Financial Services Commission has indicated that it may approve the merger even without the KEB union’s full consent.
The financial group earlier this week suggested giving regular posts to 3,400 irregular employees ― 2,000 from KEB and 1,400 from Hana Bank ― within a month of the merger.
This was a major compromise in an effort to satisfy the KEB labor union and to achieve the much-delayed merger by the deadline. The integration was slated for Feb. 1, but the timeline was recently pushed to March 1 amid the ongoing feuds.
Without responding to the group’s proposal, the union diverted the talks by bringing the new requirement to the table.
“The merger (of Hana Bank and KEB) will be decided upon laws and principles,” Financial Services Commission chairman Shin Je-yoon said Friday. “We may not continue to wait blindly for the two banks to reach an agreement.”
Some industry observers also criticized the KEB union.
“It seems that Hana Financial has done almost everything it could to coax the union,” said an official of a top-ranking local banking group, who declined to be named.
“Under the given circumstances, we cannot but presume that the KEB union is trying to take advantage of the situation.”
Several preconditions suggested by the union so far are unrelated to the merger or its consequences, the official added.
“Our top priority will be to strike a peaceful deal with the KEB union,” said a Hana Financial official, hinting that the merger may be further delayed if the current conflict persists.
By Bae Hyun-jung (tellme@heraldcorp.com)