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South Korea's Financial Service Commission (FSC) blamed the high market volatility caused by the pandemic for the postponement of its sale of Korea Deposit Insurance Corp.’s (KDIC) stake in the Woori Bank.
The FSC, which controls the sale of state-owned firms and shares, planned to sell off the stake in the first half of 2020.
According to an FSC subcommittee, the stock market plunged amid the pandemic, while the US presidential election campaigns aroused market uncertainty.
It added that the plan to sell Woori Bank stakes completely would be carried out by 2022.
Woori Financial‘s stock price hit a low of 6,320 won in March amid the stock market plunge.
The KDIC has been silent about its target price for the Woori Bank sale.
The price of a Woori share should be sold at least 12,000 won to enable the South Korean government to retrieve investment in the bank.
