Activist Fund Align Partners Proposes Merger of Two South Korean Regional Banks, Aims for 234 Trillion Won Asset Combined Entity

Align Partners, an activist fund, proposed on July 14 that South Korea's two major regional financial holding companies—JB Financial Group and BNK Financial Group—merge to create a mega regional finance holding with combined assets of 234 trillion Korean won. The fund estimates the merged entity's enterprise value could reach up to 20 trillion won.

According to Align Partners, the merger would boost the combined return on equity (ROE) from 9.1% to 12.8%, and market capitalization could expand from 10.3 trillion won to as much as 20.3 trillion won, rivaling major banks. Align requested the two companies' boards establish independent special committees and conduct thorough reviews by August 7.