Woori's various merger scenarios with other banks surface

Regulator announced possible union between Woori and KB Financial as South Korea targets global financial competitiveness.

Some people also raise the possibility of Woori merging with Hana Financial Group and even the possibility of it merging with both KB and Hana.

Considering the prevailing view of government officials that Korea needs a giant bank to compete in the global financial market, a merger between Woori and KB, the two biggest financial holdings companies in Korea, seems to be realistic, they said.

The two companies' combined assets are over 600 trillion won ($517 billion), which gives Korea a chance to establish a mega bank that ranks within top the 50 for assets in the world.

"While Woori is strong in corporate banking, KB is strong in retail banking. The possibility of the two banks is high, given that cost reduction effect is big if they integrate overlapping outlets," a Woori Finance official was quoted by local daily Donga Ilbo as saying.

The government plans to sell a 66 percent stake it holds in Woori Finance it acquired after a bailout in the aftermath of the 1997-98 Asian financial crisis.

Woori Finance, which owns Woori Bank and Woori Investment & Securities Co., is now the nation's No. 1 financial company with assets amounting to 318 trillion won ($276.72 billion).

View the full story in Korea Herald.