Hana Financial Group, the fourth-largest banking group in South Korea, is in the final talks to purchase 20% stake in Bank of Jilin in northern China.

The two sides have agreed on major issues, including the price and the amount of new shares. Hanna Financial Group will become a largest single shareholder of the government-run bank.

Hana entered a strategic alliance with Jilin Bank last December, in an effort to foray into the country's banking industry and make inroads into Northern Korea.

Meanwhile, the Shanghai-listed real estate-to-securities conglomerate Jilin Yatai (Group) Co Ltd<600881> plans to purchase 200 million new shares in Bank of Jilin for RMB 360 million, at a price of RMB 1.8 apiece. Its stake in the bank will be raised to 5.82% after the deal. In January, Jilin Yatai purchased 180 million shares in the Chinese bank for RMB 183.6 million.

With registered capital of RMB 3.422 billion, the bank is principally offering deposit and loan businesses to local residents and enterprises in Jilin province. By the end of 2007, its total assets amounted to RMB 53.2 billion.