April 27, 2024

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[THE INVESTOR] Woori Bank plans to file an application this week to turn itself into a holding company, its officials said on June 18.

A board meeting is scheduled for tomorrow, at which a related motion is expected to be approved. An application will be filed with the Financial Services Commission  immediately after the motion is passed, the officials said.

A ruling by the FSC is expected within a month or two.

The transformation has long been in the works at the bank, which is still 18.5 percent owned by the government after repeated attempts to privatize it. Woori is the country‘s sole commercial bank that doesn’t have a holding company structure, previous attempts to sell the government‘s stake having been foiled. The government said last month it will sell off its stake in Woori after the bank becomes a holding company.

Woori officials said once the conversion is complete, the holding company will get listed in January or February.

The change is expected to start a round of mergers and acquisitions in the financial community. Woori, as a holding firm, will be free from the 20 percent investment restriction in other units, allowing it to engage in a much wider range of profitable businesses, such as securities, asset management and real estate trusts.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)