[THE INVESTOR] South Korea’s state-owned Woori Bank pledged a strong push for successful privatization by boosting its stock price after the government announced its new plan to sell its stake in the bank.

The country’s No. 3 lender by assets said on Aug. 23 that it welcomes the government’s renewed attempt to sell off 30 percent stake in the bank to several different buyers by the end of this year.

“From the experience of previous attempts for privatization, we believe that selling the stake to multiple buyers has the highest possibility of a successful sale,” the bank said. 

 

The government has tried and failed to sell a majority stake in the bank four times since 2010.

“Backed by the government’s firm willingness and Woori Bank’s sound financial performance, the disposal will be successful this time,” the bank said. 

Related article : 
Seoul to sell 30% stake in Woori Bank to multiple buyers

By November, Woori Bank plans to put its utmost effort to bolster its share price while keeping its earnings on an upward trend in the third quarter.

Shares in Woori Bank rose 21 percent this year, closing at 10,400 won (US$9.30) on Aug. 23.

On Aug. 22, the nation’s top financial regulator Financial Services Commission said a group of investors can bid for a 4 percent to 10 percent stake each to constitute oligopoly shareholders.

The stake disposal could recoup nearly $2 billion of taxpayer money spent bailing out the bank nearly two decades ago.

The lender also seeks to increase the ratio of capital adequacy by issuing contingent convertible bonds worth US$500 million next month.

By Park Han-na (hnpark@heraldcorp.com)