...State Support-Driven IDRs: The IDRs of Woori Bank are driven by Fitch's belief that there is an extremely high probability of the South Korea government providing support to the bank, if needed. This view mainly reflects Woori's systemic importance to country's banking system, underscored by the bank's designation as a domestic systemically important bank in December 2015 by the Korean regulator. KDIC's Stake Sales: Korea Deposit Insurance Corporation (KDIC), Korea's deposit insurance provider and the majority shareholder of Woori, announced in August 2016 its plan to sell down 30% from its controlling 51% stake in Woori to recover the bail-out funds KDIC had injected into the bank during the Asian financial crisis. Fitch sees KDIC's controlling ownership as non- strategic so does not believe the sale will directly affect Woori's state support-driven IDRs. Strong Domestic Franchise: Woori is the second-largest commercial bank in Korea, taking about 14% and 15% of total loans and deposits...
