[비즈한국] The sale of Sangsangin Savings Bank has been delayed yet again. This comes as the prospective buyer, KBI Group, withdrew its application for approval of stock acquisition submitted to financial authorities. While there was speculation that the deal might fall through, the sale process is expected to continue for the time being. KBI Group has emphasized its commitment to the acquisition, and Sangsangin has extended the scheduled date for the share disposal.
Sangsangin Group has changed the scheduled date for the disposal of its stake in Sangsangin Savings Bank from August 31 to September 21. Through a corrected disclosure regarding the decision to dispose of shares and investment securities of another corporation, Sangsangin clarified, "September 21 does not mean the scheduled closing date of the transaction," adding, "We plan to hold discussions with the transferee regarding the maintenance of the contract and potential changes to its terms."
The prospective buyer of Sangsangin Savings Bank is KBI Group, which operates in sectors including automotive parts, industrial materials, and environment/energy businesses. In October 2025, Sangsangin signed a Stock Purchase Agreement (SPA) to sell a 90.01% stake (12,240,001 shares) in Sangsangin Savings Bank to KBI Group for 110.7 billion won. Within KBI Group, the acquisition is being led by KBI Kookin Industry, a waste treatment business. KBI Kookin Industry previously acquired Raon Savings Bank, based in Gumi, North Gyeongsang Province, and received approval from financial authorities for that stock acquisition in July 2025.
This is the third time Sangsangin has changed the scheduled date for the share disposal since the sale was first announced on October 31, 2025. The initial closing date was March 31, which was first postponed by one month to April 31, and then extended by four months to August 31.
This latest change to the closing date has drawn market attention, particularly because KBI Group reportedly withdrew its application for stock acquisition approval from financial authorities on its own. Under the Mutual Savings Bank Act, any entity seeking to become a major shareholder of a savings bank must obtain prior approval from the Financial Services Commission. This process involves evaluating the eligibility of the major shareholder—including checks on criminal records and debt-to-equity ratios—and reviewing capital increase plans for the normalization of the target entity's management.
While the withdrawal of the approval application just before the deadline sparked concerns that the sale might be canceled entirely, the process is back on track as Sangsangin extended the disposal date by approximately three weeks and KBI Group reiterated its intent to proceed with the acquisition.
KBI Group stated, "We have made our best efforts to acquire Sangsangin Savings Bank since October 2025. We have complied with relevant laws for stock acquisition approval and proceeded in good faith in accordance with discussions with Sangsangin." They added, "We have made our intent to acquire clear by actively agreeing to a large-scale capital increase after the acquisition, which was a point of discussion with the authorities." KBI Group further stated, "We were fully prepared for management normalization following the acquisition of Sangsangin Savings Bank, and we will do our best to ensure a smooth transition, including extending the contract period and re-negotiating detailed terms with Sangsangin."
The reason for KBI Group’s sudden withdrawal of its acquisition approval application has not been disclosed. However, given mentions of post-acquisition capital increases and management normalization, it is presumed that the withdrawal occurred during consultations with authorities regarding capital expansion plans.
Sangsangin Savings Bank has been working to improve its financial health through the recovery of non-performing loans and write-offs of uncollectible debt. The bank's sub-standard or below loan ratio decreased from 22.53% in 2025 to 18.51% in the first half of 2026, while the delinquency rate dropped from 16.9% to 14.23% during the same period. However, these figures remain at risky levels compared to the industry average. As of the first half of this year, the industry average for the sub-standard or below loan ratio for mutual savings banks is 8.16%, and the average delinquency rate is 6.26%.
Both sides appear cautious as the transaction has not yet concluded. A KBI Group official emphasized, "It is not that we lack the will to acquire," adding, "We have been actively preparing for the share acquisition, including complying with relevant laws." Previously, KBI Group faced criticism for a perceived lack of urgency, as it only submitted its application for the stock acquisition review in June, after having already postponed the closing date twice.
A Sangsangin official stated, "There are no changes to the contract terms. We are not re-negotiating," adding, "All details regarding the acquisition contract have been finalized and reported to the authorities, and those terms remain in effect."
Meanwhile, Sangsangin has been pursuing the sale following a 2023 order from financial authorities to divest more than 90% of its stakes in Sangsangin Savings Bank and Sangsangin Plus Savings Bank. The authorities issued the divestment order after Yu Jun-won, CEO of Sangsangin Group, received heavy sanctions for charges including illegal lending in December 2019, which disqualified him from maintaining the eligibility requirements for a major shareholder. Sangsangin is the parent company holding 100% of the shares in both savings banks, and CEO Yu is the largest shareholder, holding a 23.65% stake in Sangsangin.
Sangsangin filed an administrative lawsuit challenging the authorities' divestment order, but lost the first trial in December 2024. The case is currently in the second trial, with two hearings held since November 2025.