KB Financial, Shihan Financial reaffirm uninterst in Woori Finance stake

SEOUL, May 20 (Yonhap) -- Heads of top local financial group KB Financial Group Inc. and smaller rival Shinhan Financial Group Co. reaffirmed on Friday that they will not bid for a controlling stake in Woori Finance Holdings Co.
The Public Fund Oversight Committee, which handles sale of government-owned firms, is pushing to find an owner for the 56.97 state-held stake in Woori Finance, the second-biggest financial group by assets.
"Nonparticipation is being internally agreed upon," KB Financial Chairman Euh Yoon-dae said after arriving at the Incheon International Airport from his trip for a business conference held in the U.S. "I am not thinking right now," Euh said, referring to the race to take over the control of Woori Finance.
"We have even yet to finish the analysis on how such attempt (to buy Woori Finance) could results in in terms of issues like restructuring and fund raising," the KB Financial chairman noted.
Since taking helm of KB Financial last year, the chairman has constantly expressed unwillingness to seek a merge or acquisition of financial firms, citing weak financial health facing the group.
Shinhan Financial Chairman Han Dong-woo also confirmed his company's indifference in pursuing Woori Finance earlier in the day.
"I think, now (Shinhan Financial's) bank sector is sufficient," Han said in reference to the size of its bank unit Shinhan Bank. "Seeing from the big picture, a non-bank acquisition is appropriate," the chairman said as he returned home from the same American conference.
The uninterest shown by the heads of South Korea's two major financial groups comes as the pubic fund watchdog resumed on Wednesday the stalled process to sell the state-owned firm, rescued with taxpayers' money in the aftermath of the 1997-8 Asian financial crisis.
The committee suspended its attempt ti sell Woori Finance last December due to a lack of investor interest.
State-owned KDB Financial Group Inc., which controls Korea Development Bank, is being considered as the most prospective buyer for the controlling stake, for which the committee plans to pick a preferred bidder by September.
pbr@yna.co.kr