KDB granted 3-year regulatory relief on HMM stake

(Yonhap)

Korea Development Bank (KDB) has been granted a three-year regulatory relief on its holdings in HMM Co., whose valuation has exceeded the capital threshold set by financial authorities.
The Financial Services Commission (FSC) announced on Tuesday that it issued a no-action letter to KDB, stating that the 1,250-percent high-risk weight requirement would not apply to the portion of KDB’s HMM stake exceeding 15 percent of its equity capital.
The exemption is valid through the end of June 2028.
The decision eases pressure on KDB to offload its 36 percent stake in the shipping company. As HMM shares surged to 23,300 won ($17.16) on Tuesday, the value of KDB’s stake significantly surpassed the 15 percent regulatory threshold.
The relief allows the bank to avoid immediate capital strain and delays the need to divest for another three years.