Gov't to decide method of Woori Finance sale in H1

SEOUL, Dec. 23 (Yonhap) -- South Korea will determine how to proceed with the
sale of Woori Finance Holdings Co. in the first half of next year as part of
efforts to privatize the financial firm, the financial watchdog said Wednesday.

The state-run Korea Deposit Insurance Corp. (KDIC) holds a 66 percent stake in
South Korea's No. 2 financial services company after unloading a 7 percent
interest on Nov. 24 through a block trade. Excluding a controlling 50 percent
stake plus one share, the agency plans to sell the remaining 16 percent via a
block trade next year.
"In the first half of next year, the way Woori Finance will be sold will be drawn
up after the government assesses public opinion," Kwon Hyouk-se, vice chairman of
the Financial Services Commission (FSC), said on a local radio program.
"The government plans to unload the minority stake through a block trade and will
consider various options to sell the controlling stake."
The watchdog is considering a merger with other financial services companies and
selling Woori Finance to a number of investors by splitting the controlling
stake. The government is also mulling selling affiliates of Woori Finance in a
bid to make it easier for the holding company to be privatized.
South Korea injected 12.8 trillion won (US$10.8 billion) in public funds to Woori
Finance to save it from near-bankruptcy in the aftermath of the 1997-98 Asian
financial meltdown. The KDIC has since retrieved 4 trillion won in public funds.
sooyeon@yna.co.kr
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