The listing followed reports here that H and CB was under pressure to merge with either Koram Bank or both Koram and Hana Bank by the end of October, as part of a government drive to restructure banks through mergers. But H and CB said it did not specify any merger plans in its listing application.

"The listing is not directly linked to any mergers with other local banks.It will not become a major factor determining mergers," an H and CB official said. "It has the symbolic meaning as the first domestic financial institution listed on the New York Stock Exchange," Tong Yang Securities analyst Ryu Jae-chul said. He expected an ADR price of around 11.7 dollars, based on the bank's current share price, or lower, given the country risk premium, and because ADRs tend to trade lower than their domestic stock price on the local bourse.

Analysts said the listing would boost the bank's credibility. But they said H and CB could get bigger synergies through a merger with two sound institutions - Koram and Hana. "If the three banks join forces together, they will have increased power in determining rates," Ryu said. "There are still too many banks in the local market, and that has led to deteriorating profitability." He said the proposed merger between strong banks would improve the industry's overall competitiveness.

But he expressed concern over possible Opposition to mergers from foreign investors who hold substantial stakes in sound domestic banks. "It's not possible for the government to force banks to merge as foreign investors have a stake of around 50 percent in most strong commercial banks," he added.