By Kim Jae-kyoung
Staff Reporter
Hana Financial Group is suffering a huge paper loss from investment in Merrill Lynch, a global investment bank hit hard by the subprime mortgage meltdown.
According to industry sources, Hana Bank, the flagship firm of the financial holding company, invested a total of $50 million in Merrill Lynch in February by taking over part of the global bank's shares sold by Temasek Holdings.
Hana Bank purchased one million shares from the Singaporean investment fund at $50 per share. However, it is now suffering paper losses of around $20 million as the stock price has fallen to below $25. Paper loss is unrealized capital loss in an investment.