Gov’t Succeeds in Privatizing Woori Bank

The government has succeeded in privatizing Woori Bank some 15 years after the state-run Korea Deposit Insurance Corporation(KDIC) acquired its mother company Woori Financial Group in 2001.

The Financial Services Commission announced Sunday that its public fund management panel approved the corporation's plan to sell 29-point-seven percent of its stake in the bank to seven investors in splinters of four to six percent.

The buyers include Kiwoom Securities, Korea Investment and Securities, Hanwha Life Insurance, Tongyang Life Insurance, Eugene Asset Management, Mirae Asset Global Investments and IMM Private Equity.

KTB Asset Management was eliminated in the main round of the bid with insufficient qualifications as a stockholder.

As a result, the KDIC will hold a 21-point-four percent stake in Woori Bank.

As part of efforts to promote the recovery of public funds injected in struggling private companies, the government had attempted to privatize Woori bank four times since 2010 by selling its holding in entirety to a sole buyer. But with the attempts thwarted due to stake's massive size, it decided in July 2015 to attempt a multi-buyer deal.

Through the privatization of Woori Bank, the government will recoup two-point-36 trillion won in public funds.

Source: KBS World Radio