Privatization of Woori Bank
The sell-off of Woori Bank which the Korean government has carried forward is eventually realized. As a result, Woori Bank will be privatized after 15 years of government ownership. When the stake sale is completed, Woori Bank will move away from the government’s interference and switch to a competition system under the management of private shareholders.
The Public Fund Management Committee of the Financial Supervisory Commission (FSC) said on July 13 that seven investors, including Korea Investment & Securities, were selected as the final winners of the Woori Bank stake. These bid offerings are 29.7 percent, which is almost the same as the 30 percent stake held for sale.
Seven investors selected as winners were Korea Investment Securities (4 percent), Hanwha Life (4 percent), Kiwoom Securities (4 percent), Mirae Asset Investment Management (3.7 percent), Eugene Asset Management (4 percent) Tong Yang Life Insurance (4 percent) whose largest shareholder is China’s Anbang Insurance and IMM Private Equity (6 percent). As a result, the share of Woori Bank held by the Korea Deposit Insurance Corporation fell from 51.1 percent to 21.4 percent, and the government will recover 2.4 trillion won in public funds. A total of 12.8 trillion won in public funds was injected into Woori Ban. With the addition of funds recovered before, a total of 10.6 trillion won was recovered, resulting in a recovery rate of 83.4 percent.
Regarding the successful bid price, the government did not officially disclose it. But it is estimated that the successful bid price will be slightly lower than the price of 12,280 won per share which was set to collect 100 percent of the public funds put into Woori Bank. The closing stock price of Woori Bank stood at 11,750 won in the stock market on November 11 when the main bid was held.
The Korea Deposit Insurance Corporation is planning to take follow-up measures such as terminating a business normalization contract with Woori Bank after signing a sale contract with the winning bidders on November 28.