Ahead of the coming bid competition for Woori Financial Group units, KB Financial Group is set to revamp its business structure to secure its position as a well-prepared potential acquirer.
As the initial step, KB Financial is expected to carry out a full-scale personnel reshuffle after its new chairman nominee Lim Young-rok takes office on July 12, group officials said Tuesday.
The financial firm, whose flagship is KB Kookmin Bank, is mentioned as one the few powerful contenders for the state-funded units of Woori Financial.
Lim’s personnel policy will likely be conducted in terms of bolstering short-term M&A strategies, targeting Woori Investment & Securities, which is scheduled to be put up for auction in August.
Last June, financial authorities unveiled a detailed road map to privatize Woori Financial, the nation’s largest financial firm.
KB Financial, whose stock brokerage sector is relatively weak compared to its bank and credit card units, had expressed interest in the coming bidding for Woori Investment.
Woori Investment, as the largest player based on assets and the second-largest on equity capital in the local securities industry, is regarded as the most lucrative unit of Woori Financial.
A KB Financial official said KB Investment & Securities lags behind Shinhan Investment Corp. and Hana Daetoo Securities in market share.
“Reinforcing the brokerage sector is urgent for us amid the keen competition with Shinhan Financial Group and Hana Financial Group,” he said.
Some market insiders predict that the coming auction for Woori Investment may draw great interest among top industrial conglomerates such as Samsung Group and Hyundai Motor Group.
While Samsung Securities is one of the top three brokerages in Korea, Hyundai Motor Group’s HMC Investment & Securities remains in the minor player class.
NongHyup Financial Group has also expressed its interest in Woori’s securities unit.
Its chairman Yim Jong-yong was quoted by media as saying, “As the government unveiled the sale plan, we will contemplate (whether or not to bid for) it seriously.”
Yim reportedly said it is necessary for NongHyup Financial to diversify its portfolio, pointing out that 80 percent of its business relies upon its bank unit.
Woori Investment will likely be put up for sale as a package, which may involve several of Woori’s other units such as its insurance, asset management, savings bank, capital service and IT service providers.
Meanwhile, financial policymakers said they would start the sale of Woori Bank and Woori Card early next year.
By Kim Yon-se (
kys@heraldcorp.com)
