The government had injected 12.7 trillion won ($11.4 billion) in taxpayers’ money into Woori Bank and its affiliates as a large-scale bailout in the wake of the 1997 Asian currency crisis.

While most of Woori Bank’s sister firms including a stock brokerage firm have already been sold to investors, policymakers’ ongoing move to privatize the first-tier bank is one of a few eye-catching issues in the local financial market.

In terms of recouping huge public funds, the sale project is likely to draw wide interest among ordinary South Koreans, many of whom are customers of the bank.

Over the past few years, the Financial Services Commission has had difficulties finding a qualified investor to take over Woori Bank, whose assets exceed 250 trillion won. After a series of failures since 2010, the financial regulator vowed to accomplish a successful bidding process later this year.

Some analysts highlight the stock prices. They say the FSC should sell the state’s stake in the financial firm for at least 13,500 won per share if it aims to retrieve the principal of taxpayers’ money without a loss. Its price has ranged between 8,000 won and 11,500 won over the past year.

But there is a more significant task for local policymakers. In the 2000s, the local financial market suffered bitterly after handing over some major banks to foreign buyout funds -- Lone Star Funds, Newbridge Capital and Carlyle Group.

The market has eventually proved that Woori Bank has far outperformed the three lenders, Korea Exchange Bank, Korea First Bank and KorAm Bank, which were controlled by the three funds respectively, in terms of profitability and operating power.

Though it is important to offer a level playing field for both homegrown and overseas investors during the coming auction, policymakers should bear in mind that more capital flight can no longer be tolerated by citizens.

The FSC is pushing for a split-based sale process in which at least a couple of investors will hold a certain portion of stake in Woori. Even if a foreign investor is included as a potential bidder, the regulator should thoroughly look into whether it involves speculative capital seeking mid or short-term gains.

Bidders’ financial soundness should also be contemplated. The nation saw many healthy financial firms go into insolvency due to their biggest shareholders’ lax management that caused liquidity crises.

There is a worrisome point in Woori Bank’s auction scheme during the Park Geun-hye administration.

Some might raise the allegation that the government is in a desperate bid to offset fiscal deficit by securing state funds via a speedy sale of the bank. The assumption is feasible as the government is undergoing a tax revenue shortage. In addition, it has carried out a series of supplementary budgets to boost the economy.

In light of the future era of financial technology and internet-only banks, Woori Bank should also seek not to become an outdated lender in the coming years.

The public funds-injected bank, which has held great soundness after restructuring over more than a decade, should not be exploited as a funding tool for the incumbent administration.

In this context, the financial authority should be extremely prudent in singling out a group of preferred negotiators in the bidding process.

Although the FSC has said it will find the preferred bidders by November, an unconditional completion of the sale mission must be ruled out. If investors fail to meet standards, another failure in retrieving taxpayers’ money is tolerable.

In addition, restrictions on nonfinancial capital holding an influential stake in first-tier lenders should also be adhered to. Chaebol such as Samsung and Hyundai Motor should continue to be segregated from the four major commercial banks Woori, KB Kookmin, Shinhan and KEB Hana.