In a move that represents a new trend in the Korean investment banking sector, one of Korea's major banks has struck an alliance with an international boutique. Hana Bank, Korea's third largest commercial bank, will set up an alliance with sector specialist, IRG.
This will focus on originating telecom, tech and media business (TMT) from Korea. Hana already has a strong presence in the infrastructure side of investment banking, but wanted to grow its TMT business.
It appointed Eugene Bang as its head of investment banking at the beginning of 2003 and he contacted old friends at IRG. IRG is a boutique based in Hong Kong whose bankers are ex-Lehman, Morgan Stanley and Merrill Lynch. Bang was formerly at Merrill and Goldman, and saw a perfect fit.
In February the two began formal talks and finalised the alliance this month. The deal will be a revenue sharing one with the new sectoral team being headed by IRG's Philip Kim. He will sit in Hana's office alongside two bankers from Hana.
The new allies are currently working on deals, and say the alliance will span everything from M&A and corporate restructuring through to equity and debt underwriting as well as derivatives.
