The Korean government's decision to sell Seoul Bank to Hana Bank rather than the foreign investment fund, Lone Star signals a change of direction.
On two previous occasions banks had been sold to foreign investment firms, the lucky buyers being Newbridge Capital and Carlyle meanwhile the government watched Korea's economy boom and saw that the domestic bank merger between Kookmin and HCB had proven a phenomenal success.
So few ought to be surprised that when faced this time round with a bid from a foreigner and from a domestic entity it opted for the latter and to gain the chance to create another large, Korean financial champion.
In strictly financial terms it may have...
