Shin & Kim represented Kookmin Bank in its recent acquisition of ‘Center Credit Bank (BCC)’ Kazakhstan. This acquisition of a Kazakhstan bank is the biggest deal among Korean financial institutions in overseas M&A history, and Kookmin Bank took the opportunity to become a leading bank in Central Asia.

 

The deal was valued at over KRW 1 trillion. In addition, the deal is significant as it was not just a passive overseas M&A in the form of a strategic cooperation with local banks or local corporation establishments, but a true M&A led by a Korean bank in an overseas market. It is expected that the acquisition will have a positive influence on the Korean financial institutions’ expansion of their overseas operations.

 

In this transaction, Shin & Kim, as counsel for Kookmin Bank, managed actual survey, negotiations, finalized various contract and completed this mega-size transaction including many unfamiliar and complex Kazakhstan legal issues. In doing so, Shin & Kim played a major role to lead a team consisting of English, American, and local Kazakhstan law firms. Key factors of this success are Shin & Kim’s experience in financial institution M&As and the ability to strategize and liaise with local advisors and authorities.

 

During the IMF crisis, domestic banking institutions and organizations were taken over by overseas financial institutions. These days, the trend in M&As is that Korean financial institutions are increasingly acquiring foreign entities and Shin & Kim is at the core of this trend as a global firm with an expertise in this field. Woong-Soon Song, Beom Su Kim and Sang Hyun Lee of Shin & Kim were lead counsel of the Kazakhstan bank acquisition.

 

Shin & Kim’s accomplishments involve a number of monumental M&A projects, including many record breaking M&A deals.

 

Representative cases are ▲ Merger of Kookmin Bank and Housing and Commercial Bank (2001) which was the first large size banks’ merger and acquisition (M&A), ▲ Carlyle’s Hanmi Bank purchase, ▲ Merger of Woori Bank and Peace Bank of Korea (2002), ▲ Merger of Seoul Bank and Hana Bank (2002), ▲ Sale of Korea Exchange Bank to Lone Star Funds (2003), ▲ Sale of Choheung Bank to Shinhan financial stockholders (2003), ▲ Carlyle’s Hanmi bank Sale (2004).

 

In addition to banks, Shin & Kim advised in the following transactions:▲ Hanwha and Orix’s Korea Life Insurance purchase (2002), ▲ Sale of Kookmin Bank Investment Trust Company (2002), ▲Woori financial stockholder’s Korea Investment Co., Ltd. / Daehan Investment Management Co., Ltd. purchase (2004), ▲ Woori financial stockholder’s LG Securities bond purchase (2004), ▲GE’s Hyundai Capital shares purchase (2004), ▲GE’s Hyundai Card shares purchase (2005), ▲Sale of Hanil Life Insurance (2005), ▲ MBK Partners’ Hanmi Capital purchase (2006) ▲ Sale of KGI Securities (2007), ▲ ING’s Landmark Investment Trust Company purchase (2007), ▲ Sale of Hannuri Investment & Securities (2008).

 

Concurrently with the Kookmin Bank’s acquisition of the Kazakhstan bank, Shin & Kim also advised SK Telecom in its acquisition of Hanaro Telecom (KRW 1.15 trillion) and Kumho Asiana group in its acquisition of Korea Express (KRW 4 trillion).