This article was published on June 27, 2025, at 4:39 p.m. on the ChosunBiz MoneyMove (MM) site.
As domestic banks and financial holding companies have begun a massive sale of real estate, KB Kookmin Bank recently succeeded in selling three vacant branches. The bank is securing cash to improve soundness indicators, including the Common Equity Tier 1 (CET1) ratio, and is rapidly streamlining assets by selling some real estate within a month.
According to investment banking (IB) industry sources on the 27th, Kookmin Bank recently sold three vacant real estate properties, including the branches at Lachisan Station and Jowon-dong in Seoul, and Dunsan Clover in Daejeon. The total sale price is approximately 42 billion won. It is reported that one strategic investor (SI) participated in the bidding for each of Lachisan Station and Jowon-dong, while six prospective buyers competed fiercely for Dunsan Clover.
Kookmin Bank announced the sale of 13 branches that were consolidated last month. The properties that are up for sale include three in Seoul (Lachisan Station, Macheon-dong, and Jowon-dong) and six in Gyeonggi Province (Gwangmyeong, Maetan-dong, Bon-O-dong, Seongnam Jungang-ro, Uijeongbu, and Haengsin-dong), making a total of 13. Based on the appraisal conducted by Kookmin Bank for these branches, the expected sales amount is around 133.4 billion won.
The reason Kookmin Bank is accelerating the sale of real estate is to secure cash to increase its common equity capital ratio. The common equity capital ratio indicates how much capital a financial institution holds that can absorb losses, including common stock and retained earnings. Since real estate is generally classified as capital with a high risk weight, converting it into cash can improve capital soundness indicators.
Recently, domestic financial holding companies have started streamlining assets to increase their common equity capital ratios. Woori Financial Group is reviewing the sale of properties such as the Woori Bank training center in Ansung, Gyeonggi Province, and the Myeongdong Digital Tower to meet the common equity capital ratio requirement for the approval of the inclusion of Tongyang Life Insurance and ABL Life Insurance. Currently, vacant bank branches are up for sale. Among them, the Dangsan-dong branch was recently confirmed to be sold for about 27.2 billion won.
Shinhan Bank and Industrial Bank of Korea are also pushing ahead with the sale of vacant real estate. Shinhan Bank plans to dispose of its Mangwoo-dong branch through a sale and leaseback method. Other branches such as Seohyun-dong, Sangmu-dong, Gojan-dong, and Busan Station are also on the sale list. Industrial Bank of Korea is reorganizing vacant properties such as the Seongnam IT branch and the Yongin Suji branch. However, these branches have not yet found buyers.
An industry insider noted, “Since the beginning of this year, many of the properties held by financial holding companies have been hitting the market,” adding, “Some listings are located near subway stations, making them accessible, and as they do not require administrative procedures for change of use, developers looking to gain profits from redevelopment are showing interest.”