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| Woori Financial Group Chairman Son Tae-seung speaks during the firm's management strategy meeting at its headquarters in Seoul, Jan. 15. Yonhap |
By Lee Min-hyung
Woori Financial Group is expected to be fully privatized no later than the end of 2021, after two decades of "public ownership," if the government acquires a buyer for its remaining 10-percent stake in the bank holding company.
The Financial Services Commission (FSC) said Thursday it would finish receiving letters of intent to purchase the shares, Oct. 8, hoping to close a deal as early as the end of November after finding a successful bidder.
As of Sept. 9, Woori Financial's largest shareholder is the state-run Korea Deposit Insurance Corporation (KDIC) which holds a 15.25 percent stake in the financial holding firm. The National Pension Service (NPS), which owns 9.8 percent, is the second-largest shareholder.
Any investor which purchases at least a 1 percent stake from the KDIC is able to join the competitive bidding. The FSC plans to offer an incentive to an investor that buys more than a 4 percent stake from the organization, allowing it to hold the right to recommend Woori Financial's outside directors.
Major shareholders of the financial firm include the NPS, IMM Private Equity, Taiwan's Fubon Financial Holdings and Korea Investment & Securities. Any existing or other investors that purchase all of the 10-percent stake put up for sale will become the largest shareholder.
The FSC also underscored that Woori will be able to achieve complete privatization if the stake sale progresses smoothly as scheduled.
"If the stake sale is completed successfully, Woori will be fully privatized," an official from the authority said. "This will pave the way for the company to carry out more shareholder-oriented management."
The government has for years pushed for the privatization of Woori. The plan hit a snag last year amid the spread of the coronavirus pandemic. With Woori Financial's stock price plunging below the 10,000-won ($8.55) mark, the scheduled sale was delayed.
But Woori shares have shown signs of bouncing back in recent months on expectations of the firm's improved earnings and interim dividend payouts.
