KDB Gov to Meet Japanese Bankers for Investment Banking

Korea Development Bank (KDB) Governor Kim Chang-lok will hold a series of meetings with heads of Japan's major investment banks and securities firms this week to discuss the bank's transition toward a private company.

``The meetings, scheduled for Thursday and Friday in Tokyo, will provide a crucial opportunity to share the experience of Japan's major financial firms in the course of becoming major global players,'' KDB said in a press release.

The gatherings are a part of its efforts to strengthen its investment banking capabilities in line with the government's plan to privatize it. The Lee Myung-bak administration is seeking to grow it into a top-tier global investment bank through privatization and a merger with Daewoo Securities, the country's largest securities firm.

Kim will meet with Minoru Murofushi, governor of the Development Bank of Japan (DBJ), Hiroshi Saito, president and CEO of Mizuho Corporate Bank and executives of Mitsubishi UFJ Sumitomo and Mitsui Banking Corp.

``Kim will share views with the Japanese firms on how to achieve KDB's successful transition toward a private entity and on how to conduct organizational shake-ups. Learning from the firms will be helpful for us to become a global investment bank,'' it said.

In particular, the state-owned lender is seeking to consolidate ties with DBJ, a state-owned lender of Japan that is on the road to full privatization like KDB. Kim will share opinions with DBJ on a variety of issues, including how to achieve a successful privatization, how to raise capital after privatization and how to change corporate government, KDB said.

The bank will also hold a workshop with Mizuho Corporate Bank to discuss ways of promoting their partnership in the areas of investment banking and overseas development projects, it said.

Separately, KDB is hiring global investment banking experts to launch units in China, Vietnam and other developing markets.

``Our goal is to make KDB a strong investment bank in Asia,'' Governor Kim said in a recent speech. ``We will consider participating in merger deals in the region.''

KDB officials said the bank is taking UBS (Switzerland's largest financial services firm) and Singapore's state-owned investment firm Temasek Holdings as role models.

According to the government's three-stage roadmap for KDB's privatization, KDB will create a holding company that will manage its stakes in private firms and direct privatization strategies. Then, the government will reduce its shareholding in the holding firm to 51 percent, and set up an investment fund with the money from the stake sale. Lastly, it should sell additional shares in the holding firm to turn it into a fully private financial company.

http://www.koreatimes.co.kr/www/news/biz/2008/03/123_20632.html

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KDB Gov to Meet Japanese Bankers for Investment Banking