The government-led project to retrieve taxpayers’ money injected into Woori Financial Group will officially start on Friday when the new chief of the state-funded financial service firm is scheduled to take office.
One day before the coming inauguration of Woori Financial chairman nominee Lee Soon-woo, the nation’s chief financial regulator Shin Je-yoon said the Financial Services Commission would unveil detailed measures to sell the group late this month.
FSC chairman Shin told a group of researchers on Thursday that financial authorities “will publicize a road map to privatize Woori Financial Group on June 26.”
Through his report to the National Assembly on Wednesday and the Thursday meeting with researchers, Shin reiterated that the FSC planned to seek a “split-based” sale of Woori Financial units
“The FSC is considering selling subsidiaries such as provincial banks and the securities sector separately,” Shin said.
In accordance with his remarks, the group sale will likely be split into three parts ― the first auction package for Kyongnam Bank and Kwangju Bank, second for Woori Investment & Securities and asset management units, and third for Woori Finance Holdings, Woori Bank and Woori Card.
Woori chief nominee Lee is also set to deliver an inaugural speech supporting the policy from financial authorities.
“Chairman Lee’s speech (slated for Friday) will mainly be focused on his strong commitment to carrying out the privatization process successfully,” said an Woori Financial executive.
While Lee has gained trust from employees as a veteran banker, the issue is how the new chairman will placate and persuade the union during the coming process of finding acquirers of each subsidiary, the executive added.
Ahead of the sale project, the imminent personnel policy of Lee for each unit, including appointment of chief executives, is attracting wide attention in the market. Lee will concurrently hold the post of group chairman and bank unit CEO.
Woori Financial is the nation’s largest financial services company with total assets exceeding 400 trillion won ($363 billion). The government injected 12.7 trillion won in public funds into the group in the wake of the 1997 Asian currency crisis.
The ruling Saenuri Party has called for the FSC to sell South Gyeongsang Province-based Kyongnam Bank separately to an investor in the region.
The main opposition Democratic Party also said the liberal party wanted an investor in the Honam region to take over South Jeolla Province-based Kwangju Bank.
By Kim Yon-se (
kys@heraldcorp.com)
