Woori Bank, South Korea’s fourth largest bank, will gear up to enlarge into a financial group entity running separate financial arms as it is finally on path to become fully privatized after government stake of 30 percent has been sold off to multiple investors, said its chief executive Lee Kwang-goo.

“We will establish exemplary bank management system through a board representing oligopolistic shareholders,” Lee told employees after Sunday’s awarding of government stake.

The government and Public Fund Management Committee on Sunday chose seven winning bidders for 29.7 percent of 51.06 percent interest in Woori Bank held by Korea Deposit Insurance Corp.

The buyers of the shares worth 2.4 trillion won ($2.05 billion) are IMM Private Equity with 6 percent stake, Korea Investment & Securities Co., Hanwha Life Insurance Co., Tongyang Life Insurance Co., Kiwoom Securities Co., and Eugene Investment & Securities Co. with 4 percent stake each, and Mirae Asset Global Investments Co. with 3.7 percent stake.

The deal will be finalized by mid-December, handing over the ownership in the bank from the government to multiple oligopolistic shareholders owning more than 50 percent of the total shares by a single acquisition. Except for Eugene and Mirae Asset that clearly manifested no interest in management, the five shareholders are eligible to name an external member of the bank’s board of directors that appoints the head of the bank and oversees management affairs.

Korea Deposit Insurance hopes to sell the remaining 21.4 percent stake in the bank to one of the shareholders next year. The government has been trying to sell the government stake in the bank since 2010.

The bank will strengthen itself to be eligible to become a competitive financial holding entity next year, upgrade asset management service, up advance into global markets and explore other growth sectors, he said.

Lee may be suggesting that the bank will renew expansion to form as a financial holding entity with insurance, securities, and other asset managing operations. The bank has shed non-banking financial units to make it leaner for stake sale.

At 3:12 p.m. on Tuesday, shares of Woork Bank were traded at 12,100 won, down 0.82 percent, or 100 won, from the previous session.

By Park Joon-hyung

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