OK Financial prepares for Sangsanin Savings Bank acquisition

OK Financial Group CI

OK Financial Group is expected to fast-track its acquisition of Sangsanin Savings Bank after shutting down its lending subsidiaries, which had faced allegations that they are operating illegally.

According to the financial sector on Monday, OK Financial Group officially liquidated H&H Financial and Yellowcapital, two subsidiaries subject to mandatory disclosure, in December 2024.

Both companies were affiliated with Beecollect, a debt collection firm where Choi Ho, the younger brother of OK Financial Group chairman Choi Yoon, holds the largest share. The subsidiaries were implicated in illegal operation claims raised during a National Assembly audit in 2024.

By exiting the lending business, OK Financial Group is positioning itself to expand its business portfolio. The group completed a two-week due diligence process in December 2024 to prepare for the Sangsanin Savings Bank acqusition. If the deal goes through, OK Financial Group‘s total assets would reach approximately 16 trillion won ($10.9 billion) as of the third quarter of 2024, surpassing current leader SBI Savings Bank. “We plan to gradually expand our business portfolio through operational restructuring,” a group representative said.

Sangsanin Group is also reportedly engaged in active negotiations. The group must sell both Sangsanin Savings Bank and Sangsanin Plus Savings Bank due to issues with major shareholder eligibility requirements. Sangsanin Group is also challenging the financial regulator’s order to divest these two savings banks.