(LEAD) KDB mulling purchase of Thai bank

SEOUL, Jan. 18 (Yonhap) -- South Korea's Korea Development Bank (KDB) said Monday
it is considering buying Siam City Bank Plc, Thailand's No. 7 lender, as part of
efforts to expand its reach into the Asian market.

"KDB is mulling a takeover of the bank although the move is in its early stages.
The head of KDB Financial Group Inc. left for the country (Thailand) on Sunday
for a three-day trip to discuss the matter with the Thai authorities," a
spokesman at the KDB said.
Min Euoo-sung, president of KDB Financial Group, has said the group is looking to
acquire financial firms in Asia as part of efforts to expand its funding sources
ahead of its privatization. He said it is looking at two or three countries for
potential takeovers.
The Korean government plans to reduce its 100 percent stake in KDB Financial
Group within four years to put it in private hands. The group was created in late
October as the holding company for KDB and four other units.
The Bank of Thailand, the country's central bank, is seeking to sell a 47.6
percent stake in Siam City Bank by the second quarter of this year. The central
bank is poised to pick a preferred bidder for the lender around next month with
five or six investors showing interest in the bidding.
sooyeon@yna.co.kr
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