Kim Seok-dong, chairman of the Financial Services Commission, on Wednesday stressed that the government will go ahead with its plan to privatize Woori Financial Group despite warnings of a strike by the Woori union.

The labor union of Woori warned on Monday that it will launch a general strike if the government takes steps to merge the nation’s largest financial group in assets with rival KB Financial Group.

“The privatization of Woori Financial Group is not something people can protest against,” Kim told reporters before attending a policy forum in Seoul.

“It has been 11 years since taxpayer money was injected into Woori Financial. What belongs to the people must be returned to them.”

Some 12.8 trillion won ($11.2 billion) in public funds was spent to bail out Woori in 2001. Only about 5.4 trillion won of it has been recovered as the state-run Korea Deposit Insurance Corp. sold off its stakes in Woori. The KDIC now has a 56.97 percent stake.

As for the government plan to sell all Woori Financial subsidiaries, including two regional banks and the brokerage unit Woori Investment & Securities Co., to a single buyer, 18 lawmakers from the South Jeolla region called for the separate sale of Kwangju Bank in a statement on Wednesday.

About the recent suspension of four mutual savings banks, Kim said there will be year-round restructuring in the market.

“The Financial Supervisory Service will determine which financial institutions should be kicked out through regular inspections and regulatory filings,” he said.

Kim said the KDIC’s special account funds for the restructuring of savings banks have not been drained yet, and that the government will push for a revision of the KDIC law in the 19th National Assembly to extend the term of the special account.

By Kim So-hyun (sophie@heraldcorp.com)