Hana to add another Indonesian bank

Hana Financial Group is set to acquire a major stake in an as yet unnamed Indonesian bank to further expand into Indonesia’s robust banking sector.

South Korea’s third-largest financial group said that it wants to purchase a controlling stake up to the maximum 40% allowed by law in a Jakarta-based bank that has some US$619 million in total assets. Hana refused to identify the Indonesian bank, however, citing ongoing negotiations.

“We are considering acquiring a major stake in the bank. The banking industry in the country is becoming larger, and we want to expand our presence there,” said a Hana spokesman. “We geared up for the acquisition as organic growth is limited to brace for the rapid change in the business.”

Sources say Hana will merge the Indonesian bank with its two Indonesian affiliates, PT Bank Hana and Bank KEB Indonesia, to create a synergy effect.

Hana chairman Kim Jung-tai said recently that his bank aims to derive more than 15% of its revenue from overseas markets in three years to leap forward as a global player.