The merger of Hana Bank and Korea Exchange Bank, the two flagship banks of Hana Financial Group, is growing imminent as the nation’s financial regulator is set to approve it soon regardless of opposition by the KEB union.

Despite the union’s uncompromising stance, the nation’s third-largest banking group is speeding up the merger process on the strength of the government’s move to endorse it, group officials said.

Hana Financial will submit its application to the Financial Services Commission as early as Thursday to get the regulator’s preliminary approval of the merger, the officials added.

The FSC is scheduled to hold a regular meeting on Jan. 28 to officially approve the merger plan and Hana Financial will hold a shareholders’ meeting to deal with the issue the next day ― making it barely in time to kick off a merged bank on March 1 as planned.

The banking group had earlier said that its top priority is to reach a peaceful agreement with the KEB union, hinting that the merger timeline may be further delayed.

The company suggested promoting the temporary employees to regular posts within one month of the merger, largely embracing the union’s demands. But instead of accepting the proposal, the KEB union continued to demand that Hana Financial first confirm the details of the merger process.

The FSC finally announced that it would approve the two banks’ merger, regardless of the union’s consent.

“It is possible that the FSC may approve the merger without a management-labor agreement,” said chairman Shin Je-yoon at the parliamentary state affairs committee meeting on Monday.

But Hana Financial stressed that it would nevertheless continue the talks with the union.

KEB president Kim Han-jo, representing Hana Financial’s management, will continue to hold talks with KEB union leaders, officials said.

“We suggested to the union to select a delegate and round off the negotiations within this month,” said a spokesperson for Hana Financial.

“The process will continue on a two-track system, the merger approval on one side and the management-labor talks on the other.”

The KEB union lashed back.

“It is inappropriate (for Hana Financial) to file for merger approval or to summon a shareholders’ meeting when we have not even reached a deal on key requirements,” it claimed.

“The company is imposing a set due date (on the union) and this is stopping both sides from having genuine talks,” the union said.

By Bae Hyun-jung (tellme@heraldcorp.com)