South Korea mulls hastening sale of Woori Finance

Sale of 16 percent stake of the financial firm speeds up its privatisation.

The state-run Korea Deposit Insurance Corp. (KDIC) holds a 66 percent stake in Woori Financial after unloading a 7 percent interest on 24 November 2009 through a block trade. Excluding a controlling 50 percent stake plus one share, the agency plans to sell the remaining 16 percent via a block trade this year.

Kwon Hyouk-se, vice chairman of the Financial Services Commission (FSC), in a press conference, said a minority stake will be first unloaded before the firm's privatisation.

"The government plans to decide the methods of selling the group as soon as possible in the first half," Kwon added.

According to a report in Yonhap News, the FSC has said the government is open to various options to sell the controlling stake in Woori. It is considering a merger with other financial services companies and selling Woori Finance to a number of investors by splitting the controlling stake.