The Financial Services Commission approved Hana Financial Group’s application to take over Jeil 2 Savings Bank and Ace Mutual Savings Bank.

With the regulatory endorsement, the financial group’s secondary banking unit, named Hana Savings Bank, is poised to launch business on Feb. 17.

Hana Financial won the bid to acquire the two distressed savings banks last December.

Jeil 2 Savings Bank, which is headquartered in Seoul, has assets of 503.7 billion won ($441.8 million). Ace Mutual is based in Incheon and Gyeonggi Province and has assets of 673.4 billion won.

The savings banks, suspended by the FSC last September, failed to raise their capital adequacy ratios above 1 percent.

With the coming acquisition of the distressed savings banks, the financial group is likely to attract more lower-income customers in their lending businesses and more depositors aiming at high interest rates.

By Kim Yon-se (kys@heraldcorp.com)