Align Partners' BNK-JB merger proposal draws fierce regional opposition

Activist fund Align Partners Capital Management's proposal to merge BNK Financial Group and JB Financial Group has sparked fierce opposition from regional business groups and labor unions, which argue the deal would prioritize short-term shareholder returns at the expense of the public role and regional identity of local lenders, industry officials said Friday.

Align holds a 14.83 percent stake in JB Financial, making it the group's second-largest shareholder, and owns more than a 1 percent stake in BNK Financial.

JB Financial is the holding company of Jeonbuk Bank and Kwangju Bank, while BNK Financial controls Busan Bank and Kyongnam Bank.

The activist fund has urged the two regional financial groups to review the strategic merits of a merger, arguing that consolidation would strengthen their long-term competitiveness.

At a July 14 press conference, Align CEO Lee Chang-hwan asked the companies to announce by Aug.

7 whether they would begin a formal review and disclose any implementation plan when they report third-quarter earnings.

The proposal has since faced mounting opposition from r ...