Standard Chartered Korea, a wholly owned subsidiary of Standard Chartered, has agreed to divest two South Korean units to Japan-based J Trust for approximately KRW151bn ($148m), as part of its strategy to curtail losses in the country.
The businesses put up for sale include Standard Chartered Savings Bank (SCSB) and Standard Chartered Capital Korea (SCCK).
Go deeper with GlobalData
The transactions, which are likely to conclude by the end of 2014, are subject to certain conditions including regulatory consents.
Post completion, SCSB and SCCK will become part of the J Trust, while all the staff will remain employed under their existing terms and conditions.
Standard Chartered noted that the deal will enable it to improve the returns generated by its South Korean business by simplifying the structure of its operations.
Further, it will also allow the bank to increase focus on wealth products and services, and serve Korean clients that can benefit from the group’s international trade network.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataStandard Chartered said that it will remain committed to its South Korean business, and the disposal of SCSB and SCCK will not impact Standard Chartered’s retail clients, commercial clients or corporate and institutional clients in the country.
Standard Chartered Korea CEO Ajay Kanwal said, "These transactions are part of our strategy to reshape our business in Korea, as we improve returns by focusing on the client segments and products where we are competitively differentiated."
