Kookmin mulls sale of ING shares to secure liquidity

SEOUL, Sept. 23 (Yonhap) -- South Korea's top lender Kookmin Bank said Tuesday it
is considering selling its entire stake in the local insurance unit of Dutch
financial giant ING Group in a move to secure liquidity.
Kookmin, the second-biggest stakeholder of ING Life Insurance Co., may dispose of
its 14.9 percent stake, or 1.16 million shares, to cope with a credit crunch amid
global financial jitters, the lender said.
"We are discussing selling back the shares to ING Group to raise liquidity," said
a bank official, adding that it would be difficult to sell the stake within the
year as it requires approval from the board of directors.
Market watchers estimate the stake will fetch about 600 billion won (US$521.7
million), which would help provide Kookmin Bank with liquidity necessary for
turning itself into a holding company.
In 1999, Kookmin Bank bought a 20 percent stake in ING Life Insurance as part of
its strategic alliance with the group. It reduced its holdings to 14.9 percent in
2007 by selling back 5.1 percent to ING Group.
Kookmin Bank is due to initiate a holding company, called KB Financial Group
Inc., on Sept. 29 in a bid to beef up its non-banking business and seek more
mergers and acquisitions. The move aims to brace the company for a financial
market consolidation act that takes effect next year.
Shares of Kookmin closed at 57,700 won, down 1.37 percent from Monday.