KB Financial chair nominee pitches for Woori deal

Euh Yoon-dae sees Woori as primary target to diversify group’s operations just as Woori wants privatisation.

Woori Finance Holdings Co. would be an ideal acquisition target for South Korean financial giant KB Financial Group Inc., which needs to diversify, KB's incoming chairman said Thursday.

KB, the country's largest financial holding company by assets, is too reliant on its banking operations and needs to broaden its business into other areas such as asset management to solidify its position as South Korea's leading financial institution, KB Chairman nominee Euh Yoon-dae said in an interview.

Mr. Euh, nominated Tuesday as KB's chairman, said while organic growth would be the best option for KB, the current market conditions have left several banks as acquisition targets, and KB can't stand on the sidelines.

"Of the alternatives that can boost KB's competitiveness, a combination with Woori stands out," the 65-year-old Mr. Euh said, adding that the decision will require much analysis and the decision would have to be made by KB's board.

The government is expected to announce it will divest some or all of its 57% stake in Woori, the country's second-largest financial holding firm by assets, by the end of this month.

View the full story in the Wall Street Journal.