[THE INVESTOR] Korea’s largest steelmaker POSCO is likely to bid for a stake in Woori Bank, which the government is planning to privatize this year, industry sources said on Sept. 9.

The controlling stake of 51.8 percent is currently held by Korea Deposit Insurance Corp., which is looking to sell off 30 percent, which will be divided into 4-8 percent stakes.

Woori Bank holds a 1 percent stake in POSCO. 



POSCO currently has an interest in Woori via K-Bank, an internet bank operated by a number of major South Korean financial firms including Woori Bank and Hanwha Life Insurance. Its affiliate POSCO ICT is currently involved with K-Bank.

Private equity funds like Carlyle Group, Affinity Equity Partners, Baring PEA are reportedly taking an interest, along with MBK Partners from Korea.

Life insurers like Kyobo are also eyeing the deal, as are major institutional investors such as Mirae Asset Group, National Pension Service and Korea Post.

All bidders must submit a letter of intent by Sept. 23 for the bid.

By Kim Ji-hyun (jemmie@heraldcorp.com)