Kim Seung Yu's candor can cause consternation among his aides, who have been known to spirit journalists and analysts away from the head of South Korea's fourth-largest bank, Hana, lest he speak too bluntly. At the start of a recent conversation, Kim joked that he hoped "I don't say anything controversial today."

The 60-year-old Kim is uncharacteristically coy, however, about any plans he might have to acquire another South Korean bank amid the free-for-all to establish leadership among the country's lenders. "Maybe we have one in mind; maybe we don't," Kim chuckles. "Bank consolidation in Korea is not over yet," he adds pointedly.

In one recent deal Hana enhanced both its asset base and its stature when it picked up government-controlled Seoulbank. In February, Citigroup bought KorAm Bank. The impetus behind the merger wave is South Korean banks' belated recognition that they must bulk up to compete against big global players. Indeed, Seoul's rumor mills keep spinning out speculation about more combinations.

Kim, a University of Southern California MBA who has worked at Hana and its predecessors since 1976, is forthcoming about possible linkups with foreign financial institutions. "We need a strategic partner if we want to remain competitive," he declares.

Hana's biggest shareholders now are Germany's Allianz and Singapore's Temasek Holdings. Allianz and Hana have joint ventures in insurance and asset management. Temasek, the Singapore government's sprawling holding company, is seeking Seoul's permission to nearly triple its stake in Hana, to 10 percent, tying it more closely to Temasek's regional banking group, spread across India, Indonesia, Malaysia and Singapore.

"We'd be happy to be part of the Temasek family of banks if that helps us to be more competitive against the likes of Citi and HSBC," says the ever-candid Kim.