Hana Bank of the Republic of Korea has increased its holding of Qingdao International Bank to 72.3 percent after it bought an additional stake from the Industrial and Commercial Bank of China (ICBC), the Qingdao lender said yesterday.

　　Hana Bank, which earlier bought 50 percent of the Chinese lender's stake previously owned by Korea First Bank, shelled out US$16.11 million to buy the 22.31 percent share from the ICBC, China's largest commercial lender.

　　After the deal, the ICBC, which previously had 50 percent stake in the Qingdao-based lender, reduced its holding to 27.69 percent.

　　It took about two years to complete the acquisition, approved by the China Banking Regulatory Commission, said a bank official.

　　Qingdao International Bank, specializing in providing banking services to South Korean companies operating in China, was founded in June 1996 by ICBC and Korea First Bank with capital of US$20 million.

　　The joint-venture bank has since been profitable for eight consecutive years.

　　Currently, 4,000 South Korea companies operate in Qingdao, which is located across the sea from the country. Some 40,000 South Koreans work and live in the city.

　　Korea First Bank was badly hit in the 1997 Asian financial crisis and sold 51 percent of its stake to US-based Newbridge Capital in 1999. After the purchase, the US company turned the bank's focus on domestic retail services. Korea First Bank thereafter sought to dispose of its shares in the joint-venture bank.

　　Hana has been in talks since last April to take over the joint-venture bank.

　　Currently, China is speeding up its effort to reform the country's banking sector in a move to spur economic development.

　　Early this week, the China Banking Regulatory Commission said it plans to revamp smaller home-grown lenders after an injection of US$45 billion to two of the country's big four state-owned banks.