Woori Bank has officially been upscaled to a full-fledged financing conglomerate with capabilities beyond banking and kicked off as Woori Financial Holding Corp. under the blessing from the government vowing to stay out of management and speed up sale of remaining public stake.

Financial Services Commission chairman Choi Jong-ku attending the inauguration ceremony on Monday reiterated that the government will accelerate sale of remaining government stake in Woori Bank to complete privatization.

Woori Bank was the first in the industry to expand to a holding structure in 2001 but sold off non-banking operations to facilitate government stake sale in 2014. Woori was born from mergers and acquisitions of multiple banks in Seoul and across the nation that went under following the financial crisis in late 1990s. The government held the majority stake through public fund injections and in 2016, it sold off interests to multiple investors except for 18.5 percent.

Woori Financial Holdings is comprised of Woori Bank, Woori FIS, Woori Private Equity Asset Management, Woori Credit, Woori Finance Research Institute and Woori Fund Services. It also has 17 other units including Woori Card and Woori Investment Bank under its arm.

It becomes fifth major financial holding entities after KB, Shinan, Hana, and NH Nonghyup.

“Woori Bank can compete on equal grounds with other groups,” said Sohn Tae-seung, chairman of Woori Financial Holdings and chief executive officer of Woori Bank.

As a holding company, Woori Financial Holdings would be allowed to bolster investment up to 7 trillion won ($6.2 billion) or 130 percent of its equity capital. As a bank, the threshold was 20 percent under the Korean law.

The new holding entity is expected to reinforce non-banking sectors through M&As. It had sold off non-banking units during privatization to rivals including NH Financial Group.

Woori Bank shares have been put in a trading halt from Jan 9 to Feb 12. The trading will be resumed on Feb 13.

By Kim Tae-sung and Cho Jeehyun

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