Kookmin Bank on Friday won approval to push ahead with its plan to set up a holding company, a move that will help South Korea’s largest retail lender use its capital more effectively for further acquisitions.

The bank pledged to buy back shares from the investors opposing the plan at a pre-set price of Won63,293 each, about 18 per cent higher than Wednesday’s closing price of Won53,700. Kookmin also said that it would scrap the holding company plan if investors representing more than 15 per cent of the stock exercised their options. Only 11.4 per cent opposed the transition to a holding company structure.