Completion of Woori privatization may extend next year

The market monitors progress of move as it may start bank reforms in South Korea.

The South Korean government may not be able to complete the privatization of Woori Finance Holdings Co. this year, the head of the country's financial regulator said Wednesday.

Financial Services Commission Chairman Chin Dong-soo said the government plans to finalize the plan for handing over control of Woori, South Korea's largest financial holdings firm by assets, to the private sector. But he said that the completion of the process may not happen until after the end of this year.

He didn't explain why the process would possibly spill over into 2011.

Although a specific target date has never been set to complete the privatization, its progress is being closely watched by the market amid expectations the government would use the process to facilitate the establishment of a globally competitive financial giant. Analysts also think that starting the privatization process will trigger a major reformation of the domestic banking sector, starting in the second half of the year.

View the full story in the Wall Street Journal.