Shin & Kim has represented KB Financial Group in respect of the Spin-off of credit card business from KB bank and establishment of KB Card Co., Ltd. plans.
This transaction was a key part of KB Financial Group’s broader strategy to dilute its heavy dependency on banking profits and nurture earnings from non-banking units and may trigger similar spin-offs by other financial institutions in the Korean market. As a result of this transaction, KB Kookmin Card will likely become the second-largest player in Korea’s increasingly competitive credit card industry. Among others, Shin & Kim advised on solutions to complicated issues relating to Covered Bonds of Kookmin Bank in connection the spin-off.
The transaction, which closed on 2 March 2011, was led by partners Chang-Hyun Song, Young-Hee Jo and Byung Tae Kim.