Woori to expedite savings bank takeover

Woori Finance will expedite its rescue of a Samhwa Mutual Savings Bank. It intends to and resume the operations of the said mid-sized savings bank as early as this month.

Korea Deposit Insurance Corp. chose Woori Finance as the preferred bidder for Samhwa Mutual Savings Bank, the first savings bank to be suspended by the country's financial watchdog.

Woori Finance said it is seeking to sign a formal contract with the KDIC on the Samhwa deal as early as Thursday before starting procedures for establishing a new legal body for the troubled savings bank.

The financial group plans to inject around US$89 million in a bid to drive up Samhwa's capital adequacy ratio to more than 10 percent and resume operation. The KDIC also plans to provide financial support.