Hana Card agrees to sell 49 pct stake to SK Telecom

(ATTN: RECASTS lead; ADDS details in para 3-9)
SEOUL, Dec. 11 (Yonhap) -- The board of Hana Financial Group Inc. approved Friday
a bid by South Korea's fourth-largest financial firm to sell a 49 percent stake
in its credit card unit to SK Telecom Co.
"Earlier in the morning, SK Telecom reached the final agreement to take over a 49
percent share in Hana Card Co. for some 400 billion won (US$343.9 million)," a
source familiar with the deal said.
The source declined to reveal the agreed price of the deal.
The board of wireless carrier giant SK Telecom is set to decide on the deal when
the board members meet on Monday.
Even after the sale, Hana Financial will remain the largest shareholder with a 51
percent stake. Hana Card is expected to transfer around 57.6 million shares to
the telecom company after they are newly issued.
Hana Financial has been seeking to seal the deal with the top wireless carrier
which holds half of the nation's wireless subscriptions. Nine out of every 10
South Koreans subscribe to a wireless telephone service here.
Hana's eagerness for the deal came as the company struggles to boost the
relatively narrow customer base of its credit card unit and its wider financial
group.
"The deal is intended to allow Hana Financial to capitalize on SK Telecom's vast
customer list," said Choi Chung-uk, an analyst at Daishin Securities. "As of the
end of 2008, Hana Card controls just 3-4 percent of the overall card industry".
South Korea's saturated credit card market leaves little room for wooing new
customers and against this backdrop local players will compete to win over
customers from rivals, Choi said.
pbr@yna.co.kr
(END)