Hana Financial to raise capital for banking unit

SEOUL, Dec. 16 (Yonhap) -- Hana Financial Group Inc., South Korea's No. 4 financial services company, said Tuesday it will sell bonds worth 300 billion won (US$220 million) to help increase capital for its banking unit.
Early this month, the financial group raised 1 trillion won by issuing bonds,
injecting the funds into Hana Bank in a move to shore up the banking unit's
capital adequacy ratio.
Local lenders have been making efforts to bolster falling capital adequacy
ratios, a key barometer of financial soundness, as the slowing economy and a
credit crunch are causing more loans to turn sour.
The average capital adequacy ratio of 18 commercial and state banks came in at
10.79 percent as of the end of September, marking the lowest level in seven
years, according to the Financial Supervisory Service.
The South Korean economy grew 0.5 percent in the third quarter from three months
earlier, the weakest growth in four years as exports faltered amid weakening
domestic demand.
sooyeon@yna.co.kr
(END)