(LEAD) KDB to consider market conditions in overseas bids: head

(ATTN: REWRITES para 3; UPDATES with more info from para 5)
SEOUL, Feb. 3 (Yonhap) -- South Korea's state-run Korea Development Bank (KDB)
said Wednesday it will take into account market conditions when pushing for
overseas expansion following its recent withdrawal of a bid for a Thai bank.

KDB said Monday it has pulled out of its bid for a stake in Siam City Bank Plc,
Thailand's No. 7 lender, citing unfavorable conditions.
"KDB's decision to drop its bid came as the Thai authorities attached conditions
we could not accept," Min Euoo-sung, president of KDB Financial Group, told
reporters.
KDB has been looking to acquire financial firms in Asia as part of efforts to
expand its funding sources ahead of its privatization. Min said it is looking at
two or three countries for potential takeovers.
But market watchers said its push for overseas takeovers seemed to hit a snag
after U.S. President Barack Obama recently proposed what has become known as
"Volcker's rule," named for Obama's economic advisor Paul Volcker, which would
limit risk taking and growth by big banks.
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.
"KDB will watch closely to see whether Volcker's rule will be approved in
Congress and its potential impact on global financial markets," Min said.
He added, meanwhile, that details of a turnaround plan for cash-strapped Kumho
Asiana Group will be drawn up by the end of this month.
Creditor banks of cash-strapped Kumho Asiana Group decided on Dec. 30 to put two
other ailing units -- Kumho Industrial Co. and Kumho Tire Co. -- under a debt
rescheduling program.
sooyeon@yna.co.kr
(END)

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