Top management of Hana Financial Group decided to ask the Financial Services Commission for an approval to integrate with the Korea Exchange Bank in October, a Hana group chairman said on Thursday.

“We have basically prioritized reaching an agreement with KEB’s labor union, but we will just push ahead with the merger if the unionists continue to refuse the idea,” Hana chairman Kim Jung-tae told reporters.

The chairman added that the group may fast-track the application plan if it reaches a consensus with the union.

Since July, Hana and KEB have been taking steps for early integration ahead of 2017, as was originally planned, but the process has been met with strong protests by KEB’s union.

The union is lashing out against the firm for breaking the promise it made on Feb. 12, 2012, guaranteeing KEB’s managerial independence for five years. In 2012, Hana signed a deal to take over KEB from Lone Star Funds and Export-Import Bank of Korea.

“The Feb. 12 agreement is not an unbreakable vow,” the chairman said. “We will guarantee KEB employees’ working conditions and employment stability, and will even make a fair decision on personnel.”

As for the effectiveness of the two firms’ merger, Kim stressed the successful results of Hana and KEB’s joint corporation in Indonesia.

“We’re reviewing the acquisition of small Indonesian banks under the joint corporation and are in the process of inspection,” he said.

The KEB union, however, is digging in its heels, saying that there will be no talks (with the management of the two banks) on the possibility of an early merger.

“As a matter of fact, the Hana management has been refusing to hold a talk (with the union). It should show a little respect for KEB employees and the 2012 agreement before notifying the union,” KEB union spokesman said.

By Suk Gee-hyun (monicasuk@heraldcorp.com)