S.Korea picks new Woori Finance CEO, shares fall

SEOUL, May 29 (Reuters) - South Korea on Thursday selected a new chief executive for Woori Finance Holdings (053000.KS), which runs South Korea's No. 3 bank, but its shares fell more than 2 percent to a one-month low.

A committee formed to select the head of Woori Finance named Lee Pal-seung, chief executive of the Seoul Philharmonic Orchestra, as the new CEO of the holding firm, 73 percent owned by a government agency.

The announcement comes as the government plans to kickstart the sale of shares in the company, as part of privatisation of state-run institutions, including the Korea Development Bank and the Industrial Bank of Korea (024110.KS).

"The committee gave high scores to his various experience in the financial sector and ability as a manager," the committee said in a statement.

"We judged that he was the right person to carry out privatisation of Woori Finance and to manage its units efficiently."

Lee, 64, studied law at Korea University and had led Woori Investment and Securities (005940.KS), a brokerage unit of the group. He began his career in banking and broking.

But Woori shares lost 2.3 percent to 19,200 won by 0255 GMT, bucking gains in other banks listed on the Korea Exchange and the wider market's 1.8 percent rise.

It briefly declined to as low as 19,150 won, its lowest level since touching 19,000 won on Apr. 28.

The incoming CEO will succeed Bahk Byoung-won who was not rehired after quitting ahead of a selection process prompted by new President Lee Myung-bak who was inaugurated in February.

The news of Bahk's departure had sent Woori Finance shares to a near 7-month high early this month, fanning hopes that privatisation plans could be speeded up.

(Reporting by Kim Yeon-hee; Editing by Keiron Henderson)