KDIC recoups more than 100 pct of bailout funds injected into Woori Financial

Economy 11:34 May 18, 2022

SEOUL, May 18 (Yonhap) -- South Korea's state deposit insurer said Wednesday it had retrieved more than 100 percent of the public funds spent to save Woori Financial Group Inc. in the wake of the 1997 financial crisis, as part of the government's plan to privatize the once state-owned financial behemoth.

The Korea Deposit Insurance Corp. (KDIC) sold a 2.33 percent stake, or 17 million shares, in Woori Financial at 258.9 billion won (US$203.8 million) in a block deal earlier in the day.

Woori Financial is one of the four major financial holding firms in Asia's fourth-largest economy, along with Hana, KB and Shinhan.

With the latest stake sale, the KDIC has recouped a total of 12.87 trillion won, about 100 billion won more than the bailout funds that were spent to salvage Woori Finance in the aftermath of the 1997-98 Asian financial crisis.

Woori Finance was renamed Woori Financial in early 2019.

The KDIC's stake in Woori Financial has come down to 1.29 percent following the latest stake sale.

In February, the KDIC offloaded a 2.2 percent stake in Woori Financial after selling a 9.33 percent stake in Woori Financial last year.

The KDIC said it will make efforts to offload the remaining stake in Woori Financial without a hitch according to a government plan to complete its stake sale by 2022.