Woori Finance CEO says privatization seen in 2010

KB Financial and Hana Financial possible suitors should Korea approves privatization process in second half 2010.

The odds for Woori Finance Holdings Co.'s privatization are higher than ever in 2010, with the government expected to finalize the road map for the process sometime in the first half of the year, Chief Executive Lee Pal Seung said.

"A tangible result for Woori Finance's privatization is likely this year in whatever shape or form," Mr. Lee said in a speech Friday to staff at a company event. He said the company must use the privatization process as an opportunity to establish itself as a global financial player.

State-run Korea Deposit Insurance Corp. is Woori's largest shareholder, with a 66% stake. KDIC plans to sell a minority stake in Woori Finance, then sell a controlling stake or merge Woori with another financial firm. KDIC sold a 7% stake for 866 billion won ($769 million) in November.

Analysts said the privatization process likely will pick up in the second half of the year, and that local firms KB Financial Group Inc. and Hana Financial Group Inc. could be potential suitors.

View the full story in the Wall Street Journal.