The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Song Joong-ki marries British woman, expects baby

  • 3

    Suicidal pedestrian saved over Han River bridge

  • 5

    US four-star general warns of war with China in 2025

  • 7

    K-pop releases for February

  • 9

    INTERVIEWBusan has potential to be world-class city, says mayor

  • 11

    'Someday or One Day' cast says film spin-off has new plot

  • 13

    Seoul International School celebrates 50th anniversary

  • 15

    Koreans reluctant to unmask on first day of eased indoor mask rule

  • 17

    Base taxi fare to rise by 1,000 won to 4,800 won next month

  • 19

    S. Korea mistakenly fires machine gun near border with N. Korea

  • 2

    Japanese teen romance film attracts 1 mil. Korean viewers for 1st time in 21 yrs

  • 4

    Korea to lift indoor mask mandate Monday

  • 6

    Kim Jung-hyun returns to small screen with 'Kokdu: Season of Deity'

  • 8

    Youth, foreign drug offenders increase threefold in 5 years

  • 10

    NK rejects alleged arms trading with Russia, warns of 'undesirable result'

  • 12

    Samsung to introduce low-carbon diet for employees to help tackle climate change

  • 14

    Over 76% of South Koreans support development of nuclear weapons

  • 16

    Plum trees, pheasants and promises of old Korea

  • 18

    Main opposition leader faces pressure to resign in case of indictment

  • 20

    3 dead, 4 hurt in upmarket Los Angeles neighborhood

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Tue, January 31, 2023 | 13:54
Business
Woori Privatization Mulled via M&A
Posted : 2009-12-18 20:18
Updated : 2009-12-18 20:18
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Efforts to privatize Woori Financial Group, 66 percent of which is owned by the government, are likely to gain momentum as the government hinted it is willing to do so through a merger & acquisition (M&A).

Lee Pal-seung
Woori Financial Group Chairman
By Yoon Ja-young
Staff Reporter

Efforts to privatize Woori Financial Group, 66 percent of which is owned by the government, are likely to gain momentum as the government hinted it is willing to do so through a merger & acquisition (M&A).

In a report to Cheong Wa Dae, Wednesday, Financial Services Commission Chairman Chin Dong-soo said that an M&A could be an option to privatize the nation's second-largest holding company.

"A merger would enhance its value and make a sell-off easier," Chin said. The chairman added that the government would sell its stake in Woori as soon as possible.

As a result of an infusion of public funds during the Asian financial crisis, the government came to be the primary investor in Woori Financial through the Korea Deposit Insurance Corporation (KDIC). The KDIC currently has a 66-percent stake in Woori after selling off 7 percent on Nov. 24.

An M&A has been mentioned as the most probable and realistic way to make the group a private entity, considering the government's wish to recover as much of the public fund as possible. It has recovered 4 trillion won so far from the 12.8 trillion won it infused.

Woori Too Big a Fish?

An M&A is the most probable way forward as it could be difficult to find a buyer otherwise. To privatize Woori Financial, which is headed by chairman Lee Pal-seung, the government would have to sell 50 percent stake and transfer managerial control to the private sector.

This means the buyer has to cough up at least 7 trillion won ― around 6 trillion won for the stake and plus a premium for managerial control. Analysts estimate there will be very few potential buyers, both at the local and global level, for such a considerable purchase.

If Woori merges with another financial holding company by swapping shares and setting up a new financial holding company, the government's stake would be reduced. If it merges with KB or Shinhan Financial, for example, on 50-50 terms, it is estimated that the government stake in Woori would fall to 25 percent.

It would also pull up share prices, as the new bank set up through the M&A would be inarguably the top in the industry. The deal would change the landscape of the banking industry.

It would lead to a rise in share prices as it would be the top bank in the country. This means it would be easier to sell off stakes and collect the public fund. Woori shares closed at 14,700 won per share Friday, down 600 won from the previous close.

However, some point that such a move could lead to the domination of the industry by only a few players.

"If banks merge and acquire among themselves, the market concentration rate would rise, and problems associated with oligopoly could also rise," said Lee Byung-yoon, a research fellow at the Korea Institute of Finance.

"If Kookmin, Shinhan or Hana merges with Woori and Korea Exchange Bank, the market share of the top three in the industry would surpass 75 percent," Lee said, explaining that this would create an oligopoly.

Some say that the government may consider other options first before putting Woori up for M&A. It could split the stake to sell to a number of buyers, or it could sell off the holding company's subsidiaries, like Kyongnam or Kwangju banks, to make a reduction in the size of a potential sale.

chizpizza@koreatimes.co.kr
 
Top 10 Stories
1Over 76% of South Koreans support development of nuclear weapons Over 76% of South Koreans support development of nuclear weapons
2Koreans reluctant to unmask on first day of eased indoor mask rule Koreans reluctant to unmask on first day of eased indoor mask rule
3[ANALYSIS] Pandemic awakens demand for data-driven automation ANALYSISPandemic awakens demand for data-driven automation
4Stock-leveraged investments rise again amid bullish KOSPI Stock-leveraged investments rise again amid bullish KOSPI
5Busan seeks to take lead in expo race after BIE's April visit Busan seeks to take lead in expo race after BIE's April visit
6Korean Lunar New Year vs. Chinese Lunar New Year Korean Lunar New Year vs. Chinese Lunar New Year
7Retailers seek to bolster beauty product sales as lifting of mask mandate approaches Retailers seek to bolster beauty product sales as lifting of mask mandate approaches
8SPC opens 120th Paris Baguette store in US SPC opens 120th Paris Baguette store in US
9Biohealth geared for growth Biohealth geared for growth
10NK slams NATO chief's Seoul visit as 'prelude to war'NK slams NATO chief's Seoul visit as 'prelude to war'
Top 5 Entertainment News
1Song Joong-ki marries British woman, expects babySong Joong-ki marries British woman, expects baby
2Kim Jung-hyun returns to small screen with 'Kokdu: Season of Deity' Kim Jung-hyun returns to small screen with 'Kokdu: Season of Deity'
3K-pop releases for February K-pop releases for February
4'Someday or One Day' cast says film spin-off has new plot 'Someday or One Day' cast says film spin-off has new plot
5Itaewon music fest brings love to the healing process Itaewon music fest brings love to the healing process
DARKROOM
  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

  • World Cup 2022 France vs Morocco

    World Cup 2022 France vs Morocco

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group