The head of Hana Financial Group Inc., South Korea's second-largest banking group by assets, has said he will proceed with a merger between the group's flagship Hana Bank and Korea Exchange Bank, regardless of whether KEB's union consents.
  

Speaking during a press conference in Beijing on Tuesday, Kim Jung-tai, chairman of Hana Financial, also expressed hope that Hana Bank could get preliminary approval for the planned merger as early as this month.
  

In February 2012, Hana Financial acquired a controlling stake in KEB, the fifth-largest bank in South Korea, from U.S. buyout firm Lone Star Funds for 3.9 trillion won ($3.54 billion).
  

The proposed merger between Hana Bank and KEB has hit a snag as the latter's union demanded that Hana Financial live up to its previous pledge to keep KEB independent for five years.
  

"I don't think that a union's consent is important because the merger of the two companies is a management right," Kim said, when asked if Hana Financial would go ahead with the planned merger without consent from the KEB union.
  

Kim visited Beijing as Hana Bank's Chinese unit officially absorbed the Chinese unit of KEB on Tuesday.
  

Kim said the Chinese unit of Hana Bank aims to become the fifth-largest foreign-funded bank in China.
  

To achieve this goal, Hana Bank plans to bolster its consumer-financing business by setting up joint ventures with local lenders, Kim said.
  

Capitalized at 910 billion won, the integrated Chinese unit of Hana Bank has assets of 7.8 trillion won with 30 branches and a workforce of 834, according to Hana Financial. (Yonhap)