By Kang Seung-woo
Staff reporter
The nation's top financial regulator said Wednesday that there is no change in the government's plan to privatize Woori Financial, the second largest institution by assets, although there has been a delay caused by technicalities.
"The government's policy is to return the leadership of Woori Finance to the private sector, even though how it will sell Woori has not been determined," Financial Supervisory Commission Chairman Chin Dong-soo said in a news conference.
The government has reportedly been considering options on selling its controlling stake either in its entirety or in parts.
KB Financial Group and Hana Financial are likely to be the main suitors, according to market watchers.
As a matter of fact, new KB Chairman nominee Euh Yoon-dae is also seriously considering acquiring Woori as his top priority once he takes office after the July 13 shareholders' meeting.
"The Korean banking sector lags in competitiveness on the global stage and it is often suggested that the country needs a large bank, which would rank within the world's top 50," he said. "We need a bank as competitive and globally-recognized as Samsung Electronics."
Hana Financial head Kim Seung-yu also expressed strong interest in expansion through a merger or acquisition to create a competitive financial institution.
Chin, however, said that the delay in the Woori sale schedule is caused by the work schedule of the Public Fund Oversight Committee, which is responsible for monitoring Woori's financial situation as well as such external factors as the debt crisis in Europe.
"A few officials of the committee will go on overseas business trips until mid-July. The public fund committee will go ahead with wrapping up the plan as soon as they return," Chin said.
The FSC chairman said that getting a fair price for Woori is as important as promptly selling it.
The government owns a 57-percent stake in Woori. The FSC's original plan was to announce the sale plan by the end of June and select a preferred bidder by the end of the year.
However, Chin declined to specify the timing of the announcement.