Woori Bank, South Korea’s fourth-largest bank that became fully privatized after the government sold off its full stake to multiple investors in November last year, will seek to transform itself into a larger holding company, said its newly appointed chief executive.

The bank will seek to add small-sized financial institutions such as venture capital, real estate managing company, and bad-debt investors, Lee Kwang-goo said during the press conference on Wednesday after he was named as the first chief executive of privatized Woori Bank. Lee who has led the bank since December 2014 succeeded in retaining the position and will head the privatized bank for another two years.

Lee also said the bank may consider buying securities and insurance firms later, but an insurance company would be the last unit that the bank would seek to put under its holding firm because of lingering uncertainties before the new global insurance standard, International Financial Reporting Standards (IFRS) 17, takes effect in 2021.

Woori Bank was Korea’s first bank to form a financial holding structure in 2001, but it now controls only a few units after selling off its brokerage house, insurance unit, asset management firm and savings bank during massive restructuring to privatize the bank.

For now, Woori Bank will focus on close ties with its new owners that are mostly securities and insurance companies to explore new business opportunities, Lee said. Woori Bank is currently working with Hanwha Life Insurance Co. to advance into the Southeast Asian market. It is planning to sell asset management products of its new owners instead of setting up own business, said Lee.

Lee was reappointed as the chief of privatized Woori Bank after he has succeeded in privatizing the bank and significantly improved the bank’s performance. There were four failed attempts to sell the bank before Lee. Also, Lee’s appointment indicates that the bank’s shareholders chose stable growth over any drastic changes, industry observers said.

By Park Joon-hyung and Roh Seung Hwan

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