South Korean bank sold in historic deal

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Monday, Feb. 23, 2004 | 9:15 a.m.

SEOUL, South Korea -- U.S. financial services giant Citigroup has agreed to buy KorAm Bank, South Korea's sixth largest lender, for up to $2.73 billion in what would be the first such takeover here by a foreign banking company.

The deal announced today also marks the largest foreign investment in South Korea's fragile financial sector. It still must gain regulatory approval.

Analysts said the deal would enable Citigroup to expand its consumer banking business in South Korea. It could also boost KorAm's image as Citigroup has a good reputation in South Korea with a local branch posting strong returns in the past several years.