BUSINESSWEEK ONLINE : OCTOBER 30, 2000 ISSUE
INTERNATIONAL -- FINANCE Korea's Troubled Banks Despite bureaucratic resistance to selling control of a healthy bank, Korea's banking sector badly needs capital and knowhow BAD DEBTS $90 billion in bad loans to financial institutions have been taken off the books since 1998. A staggering 100 billion remains. CONSOLIDATION The government closed five banks and nationalized four in 1998. Other banks have been merged; some of the five banks deemed healthy may also merge. FOREIGN OWNERSHIP The government sold a controlling interest in Korea First Bank to U.S.-based Newbridge Capital in 1999. An effort to sell Seoul Bank to HSBC collapsed last year. Three healthy banks have foreign strategic investors: Kookmin (Goldman Sachs, 11.1%); Housing & Commercial Bank (ING insurance International 10%); and Hana Bank (Allianz, 12.5%). DATA: BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _					RELATED ITEMS The Korean Bank That Almost Got Away (int'l edition) TABLE: Korea's Troubled Banks INTERACT E-Mail to Business Week Online

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