As soon as Woori Bank returns to a financial holding structure with stronger nonbanking units by early next year, the Korean government will sell the remaining 18.4 percent stake in the bank to make its privatization and reorganization complete.

“Getting a good price is the top priority in the sale (of government stake). We plan to complete the sale as soon as possible when the stock value has reached the best possible level after the transition to a financial holding entity,” said Financial Services Commission Chairman Choi Jong-ku.

His comment came followed after the bank disclosed on Monday its plan to initiate process to complete transformation into a holding structure by early next year.

On Wednesday, shares of Woori Bank closed up 0.32 percent at 15,800 won. The bank deemed the most undervalued banking stock is the only nationwide lender that is not a financial group with greater freedom in running nonbanking operation.

State-run Korea Deposit Insurance Corp. retains 18.4 percent in the bank after selling 28 percent to multiple bidders in 2016.

It may take six or seven months for Woori Bank to complete the establishment of a holding company. Selling the state interest will not be easy during this phase, Choi said.

He also said there will be a lock-up period in which owners cannot sell their shares after the bank is re-listed as a holding company. But the lock-up period can be lifted under a special exception of the law to govern financial holding companies.

Woori Bank will hold a board meeting next month to determine the bank’s switch to a holding structure. Woori Bank made the first financial holding entity in 2001 but it yielded the status in 2014 to facilitate the government’s privatization scheme.

By Lee Seung-yoon and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]