The South Korean authorities have agreed to sell a majority stake in the state-owned Korea First Bank to an American consortium.

It's believed to be the first major foreign acquisition in the country's banking history.

The sell-off is part of the government's plan to reform South Korea's troubled financial sector.

Correspondents say President Kim Dae-jung considers bank reform to be crucial to restoring investor confidence in the South Korean economy which has been badly hit by the regional financial crisis.