South Korea’s government aims to sell Woori Finance Holdings Co.’s main banking unit by the end of 2014 after it failed three times to offload its 57 percent stake in the country’s biggest financial group by assets.
The won fell the most in a week and government bonds declined after the central bank governor flagged the possibility of the U.S. scaling back its debt-buying program that has fueled demand for emerging-market assets.
Asian currencies completed the first weekly loss in more than a month on speculation the yen’s slide to beyond 101 per dollar will prompt some regional policy makers to weaken their exchange rates to protect exports.
The won dropped the most in three months on speculation South Korean authorities will favor depreciation to support exporters as the yen’s decline makes Japanese rivals more competitive. Government bonds declined.
Woori Finance Holdings Co., owner of the only South Korean bank with a branch in the North, said it expects its outlet at Gaeseong industrial complex to run out of cash “soon” amid rising military tensions.