Gov't to sell stake in Woori Bank after bank sets up holding firm

SEOUL, May 21 (Yonhap) -- The government will sell its stake in Woori Bank after the bank transforms itself into a holding company by early next year, the nation's top financial regulator said Monday.

In a regulatory filing earlier in the day, Woori Bank, which is 18.5 percent owned by the government, said it aims to set up a holding company by early 2019.

As part of a plan to privatize Woori Bank, the government sold a 28 percent stake to seven institutional investors in 2016, but still holds the remaining stake in the nation's No. 3 retail bank.

Choi Jong-ku, chairman of the Financial Services Commission, told reporters that the government will "swiftly" pursue the stake sale once the bank makes the switch to a holding company structure.

It may take six or seven months for Woori Bank to set up a holding company, Choi said.

The government poured a total of 12.8 trillion won (US$11.9 billion) into Woori Bank to keep it afloat in the wake of the 1997 Asian financial crisis.

kdh@yna.co.kr
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