South Korea’s Woori Bank To Sell Its Stake In BC Card To KT

Woori Bank Ltd. soon plans to sell a 20% share of BC Card Co. Ltd. to KT Corp., the South Korean bank announced Feb. 8

The bank expects its board to approve the deal with the country’s second largest mobile carrier next week without any problems, according to a press release.

Woori’s announcement also opens the door for the completion of an earlier-announced deal in August in which Shinhan Card Co. Ltd. plans to sell a 14.9% stake in BC Card to KT (see story). That deal is contingent on Woori successfully completing the transfer of a 20% stake in BC Card to KT. Woori owns 27.65% of the company.

The deal also calls for Woori and KT to work together on other financial projects, the bank said in the release.

Woori executives declined to state the cost of the sale, but they told local media during a press conference that the bank has included the “right-to-a-call option” in which it may buy back parts of its shares in BC Card if KT violates the contract.

BC Card holds a 32% share of the credit card market in South Korea with more than 52 million cards issued by 11 financial institutions.