Yuil PE completes Korean bank buyout

The firm co-invested with SC Lowy in Shinmin Bank.

Korea-based Yuil PE, together with SC Lowy, a Hong Kong-based investment firm, have completed a controlling stake acquisition of Shinmin Savings Bank, a Korea-based mutual savings bank, according to an SC Lowy statement. 

The two firms bought equal stakes of 87 percent of Shinmin from Korean construction company Samhwan Corp. The deal was initially agreed to last July.

Financial details were not disclosed. 

The acquisition is in line with SC Lowy's push into local markets. “We intend to capitalize on the significant opportunities that will result from an onshore presence,” said Soocheon Lee, chief investment officer and co-founder of SC Lowy, in the statement.

In January, Shinmin appointed former chief executive of Yuli, Ho-Jun Lee as CEO as well as former SC Lowy executive Soocheon Lee as a managing director. 

Shinmin’s new management team intends to develop stronger risk management processes and global governance standards, which will include reducing the size of its mortgage project financing business and increasing loans to small and medium-sized enterprises, the statement said.  Shinmin will also be renamed Choeun Mutual Savings Bank.

Yuil PE is a Korean private equity firm that participates in M&A, restructuring and buyout activities in Korea. The firm also provides financing for corporates and is currently leading on and off shore transactions.