Korea Deposit Insurance signs deal with 7 investors on sale of Woori Bank

South Korea's state-run Korea Deposit Insurance Corp., on Thursday signed a 2.4 trillion won ($2 billion) deal with seven institutional investors on the sale of Woori Bank, ending years-long attempts to privatize the state-owned bank.

Under the deal, IMM Private Equity and Mirae Asset Global Investments Co. will take over 6-percent and 3.7-percent stakes, respectively, in Woori Bank. Hanwha Life, Tongyang Life Insurance Co. owned by China's Anbang Insurance Group Co., Eugene Asset Management Co., Korea Investment & Securities Co. and Kiwoom Securities Co. will each buy a 4-percent stake in the lender.

The government had owned a controlling 51-percent stake in Woori Bank through the state-run Korea Deposit Insurance Corp., a legacy of the 1998 Asian financial crisis.

At the time, the government poured 12.8 trillion won of bailout funds into Woori Bank.

Gwak Bum-gook, head of Korea Deposit Insurance Corp., said he has a firm intent to sell the remaining 21.4-percent stake in Woori Bank.

"I will push for the sale in consultation with the seven major shareholders," Gwak told reporters after a signing ceremony at his company's headquarters in central Seoul. Still, he did not give any specific time frame.

South Korea's four previous attempts to privatize Woori Bank had fallen through. (Yonhap)