M&a and Restructuring

M&A and Restructuring

in the Asian Banking Industry

By

Kyuyeol Cho

A Thesis

Submitted to

School of Public Policy and Management, KDI

in partial fulfillment of the requirements

for the degree of

MASTER OF BUSINESS ADMINISTRATION

2000

Professor Seung-Joo Lee

ABSTRACT

Mergers and acquisitions(M&As) among financial institutions are occurring at a

rapid pace in Asia after the financial crisis.

Asian governments began to

reshape their banking industries by closing or nationalizing insolvent banks, and

forcing M&A deals between banks.

This paper examines the key issues of

M&A and restructuring in the Asian banking industry and is organized into three

parts: theoretical approach, regional survey, and case study.

industry

since

recapitalization

the

financial

crisis

experienced

a

major

The Asian banking

restructuring

and

through the introduction of new foreign capital or the adoption

of aggressive M&A strategy.

Korea's banking industry also faced the situation

where the IMF forced the Korean government to lead the restructuring of the

financial sector.

The Korean banking industry experienced massive shutdowns

and mergers of ailing financial institutions for the first time in its history. This

paper also examines, through a case study, the takeover of Korea First

Bank(KFB) by Newbridge Capital, which marked the first step to bring foreign

competition into the Korean banking sector.

Newbridge's takeover of KFB is

expected to modernize the Korean banking system, promote transparency in bank

management, and rebuild the relationship between business and government.

Table of Contents

1

.

Introduction............................................................................................................1

2.

Theoretical

Approach

M&A...................................................4

2.1.

Motivations...