SEOUL, July 22 (Yonhap) -- KEB Hana Bank, a major South Korean lender, said Monday that it has signed a deal valued at over 1 trillion won (US$875 million) to buy a stake in Vietnam's No.1 bank by assets, in an effort to expand its presence in the Southeast Asian country.
Under the deal with Bank for Investment and Development of Vietnam (BIDV), the South Korean bank will buy 1.03 trillion won worth of stocks to be floated later by the Vietnamese lender.
With the stock purchase, KEB Hana will hold a 15-percent stake in BIDV, it said.
BIDV, established in 1957, is a state-run lender controlled by the State Bank of Vietnam. The Vietnamese central bank holds a 95.3-percent stake in BIDV.
BIDV is Vietnam's No.1 lender by assets with a slew of affiliates, such as an insurance company and an asset manager, under its wing. Its assets stood at 66.3 trillion won last year, and the lender logged net profits of 381 billion won.
South Korean lenders have been racing to the Southeast Asian country whose economic performance has been stellar for years, with many South Korean companies venturing into the nation.
Earlier, the Vietnamese government announced that it would sell stakes in the BIDV and other state-controlled banks.