Woori chairman determined to boost share price

By Kim Bo-eun

Son Tae-seung

Woori Financial Group Chairman Son Tae-seung bought back another 5,000 of Woori's shares, as part of efforts to boost the value of the stock and restore investor confidence.

This is Son's third share repurchase this year. He now owns a total of 78,127 shares.

This is seen as a means to bring up the price of Woori's shares by showing confidence in the value of the stock and the group's future performance.

There is a significant gap between the share price of Woori and those of other major financial groups. Woori's share price was 7,900 won as of Monday's closing. KB's price was 32,550 won Shinhan 28,500 won and Hana 24,600 won.

Hit by the market turbulence caused by the COVID-19 pandemic, financial group share prices hit rock bottom last month but started to show signs of recovery early this month.

Boosting the stock value is the top task for Son as Woori's low share price casts uncertainties on the government's plan to sell its shares to enable the group's privatization.

Currently, the state-run Korea Deposit Insurance Corp (KDIC) holds ownership of the banking group.

Financial authorities last year unveiled a plan for KDIC to sell its stake in the group over three years beginning this year.

But Woori's current share price falls largely short of the 13,000 won level Woori needs for the government to be able to collect funds pumped into Woori Bank during the Asian Financial Crisis in 1997.

The stock price for Woori, which turned into a financial holding company and listed its shares in January 2019, hit an all-time high of 16,000 won on Feb. 15, 2019, but plunged to a record low of 6,320 won on March 20 this year amid the COVID-19 turmoil.

Woori ranks fourth in earnings and has yet to scale up its portfolio to strengthen its non-banking units.

Woori also faces unresolved issues with financial authorities.

Last year, Woori Bank was hit by a scandal involving its mis-selling of financial derivative products that incurred major losses for investors.

Financial authorities imposed sanctions on Woori Chairman Son, who then doubled as Woori Bank's CEO, for his responsibility over the case. The sanctions had barred him from serving an additional term.

However, Son filed an injunction temporarily canceling the effect of the sanctions, and this was accepted by the court.

This enabled Son to serve a second term as chairman, which was finalized at Woori Financial Group's shareholder meeting last month.

Woori is seeking to file a suit against the Financial Supervisory Service to have the sanctions lifted.