The M & A flame has been reignited in the local banking sector , with major banking groups building capital in preparation for bids to take over rivals . Two major sales are looming as the economy recovers fast from the global slowdown and stock market rebound . U . S . private equity firm Lone Star is seeking to resume its long - drawn out sale of a controlling stake in Korea Exchange Bank , while the Korean government is expected to scale down its stake in Woori Financial Group . Hana Financial Group Inc . , the nation ` s fourth - largest financial company , said yesterday it was considering a rights offer , which observers see as a preparation for an M & A bid . " We are considering a rights offer , but nothing has been finalized yet , " Hana said in a regulatory filing yesterday . Hana may raise as much as 2 trillion won ( $ 1 . 7 billion ) through the offer , a local newspaper reported . " If Hana decides to pursue a share sale , it is likely to be aimed at financing an acquisition of a bank or a financial group , rather than improving its capital soundness , " Lee Jun - jae , an analyst at Korea Investment & Securities Co . , wrote in a report . Hana is most likely to be aiming at Woori Financial , as the government plans to cut its 73 percent stake in Woori to 50 percent , he said . State - run Korea Deposit Insurance Corp . , which holds the government ` s shares in Woori , plans to submit a proposal on the stake sale to its decision making committee within the month . Lone Star Funds plans to unload a majority stake in KEB within a year , John Grayken , head of the Texas - based firm said last week . " The ( Korean ) government has come to us unofficially and said when we want to sell , do ( it ) , " Grayken said , adding that he expects to sell the bank in six to 12 months . KB Financial Group , state - run Korea Development Bank and Nonghyup are thought to be interested in the lender . Last month , KB Financial , the parent of the country ` s largest lender Kookmin Bank , raised 1 . 1 trillion won through a share offering . In 2006 , Kookmin Bank had signed a contract to buy the lender , but the deal was cancelled amid a legal dispute . Shares in Woori closed 2 . 19 percent down yesterday at 15 , 650 won per share , while shares in Korea Exchange were unchanged at 14 , 000 won . ( milaya @ heraldm . com ) By Lee Sun - young