SEOUL, Sept 12 An up to $5.3 billion initial
public offering of state-owned KDB Financial Group is unlikely
before the end of the current government's term in February next
year, South Korea's Finance Minister Bahk Jae-wan said on
Privatising the holding company and parent of policy bank
Korea Development Bank has been a major initiative of South
Korean President Lee Myung-bak, whose single term ends in
"It will take several months to process the initial public
offering of KDB Financial Group," Bahk told a parliamentary
"Even if [the parliament] agrees to the government guarantee
ofdebt, there are time constraints for this
administration to continue with the initial public offering,"
The IPO was estimated to be between 2 to 6 trillion won
($1.8-$5.3 billion), as KDB Financial Group Chairman Kang
Man-soo previously said between 10 and 30 percent of KDB
Financial shares could be listed.
KDB Financial picked Goldman Sachs Group Inc and
Samsung Securities Co Ltd as lead managers earlier
this year for the prospective listing, and announced plans to
conclude listing by October or December.
But the listing process has been stalled as KDB failed to
gain parliamentary endorsement that the government will
guarantee its external debt, needed to shore up its debt before
it seeks exchange approval for listing.