Align Partners Asset Management made a public proposal to the boards of JB Financial Group and BNK Financial Group to review the strategic and financial feasibility of a merger between the two companies.

Align Partners said on July 14 it sent an open shareholder letter to the two boards. It said it asked them to set up a special committee made up of independent directors and appoint a global investment bank and a strategy consultancy as advisers to review the feasibility of a merger.

It specifically demanded a reply by Aug. 7 on whether the companies will begin a review. If a review begins, it also demanded that the results and an implementation plan be disclosed via the website or electronic filings by the third-quarter earnings release date.

Align Partners is the second-largest shareholder of JB Financial and has continued active shareholder actions, including demands for shareholder returns policies and governance improvements.

Align Partners said population decline and ageing in the Yeongnam and Honam regions, along with the concentration of economic power in the Seoul metropolitan area, are weakening the business base of regional banks. It also cited that in 2025 the combined won-denominated loan market share of Jeonbuk Bank, Gwangju Bank, Busan Bank and Kyongnam Bank was 6.0 percent, while commercial banks held 55.5 percent, as grounds for the need for consolidation.

It estimated that a merger would lead to the launch of the country’s largest single regional financial holding company, with total assets of 234 trillion won as of end-2025. It said JB Financial’s main business area is Honam and BNK Financial’s is Yeongnam, so the risk of self-cannibalisation from overlapping branches and customers is not large.

Align Partners argued that introducing a "federated merger holding company" system that maintains the corporate entities and brands of the four regional banks would allow economies of scale while minimising gaps in regional finance. It also expected effects including improved profitability, cost savings, lower funding rates, complementing the non-bank portfolio and greater capacity to invest in artificial intelligence transformation.

Align Partners CEO Chang-hwan Lee (이창환) said, "This proposal is not to immediately push for a merger between the two companies, but a request to conduct an independent and professional review and disclose the results to all shareholders."