...State Support Drives IDRs: Woori Bank's Issuer Default Ratings (IDRs) are driven by Fitch Ratings' view that the South Korean government (AA-/Stable) would provide support to the bank, if needed. This view is driven mainly by the bank's systemic importance in Korea, accounting for 14% and 15% of the system's loans and deposits, respectively, at end-2017. Fitch does not provide additional consideration for the state's 18% stake in Woori (through Korea Deposit Insurance Corporation), which the state is willing to sell. Management Execution Improving: Fitch believes the credibility of Woori's management is improving gradually following its more commercial approach towards exposure in troubled corporates and delivering modestly better capitalisation. The improvement has become more noticeable with private-sector representatives dominating the bank's board after the state sold a 30% stake in December 2016 to a group of oligopolistic shareholders. But the long-term stability of such a governance...
