BY SE YOUNG LEE

Over the decades, South Korea’s government has repeatedly inserted itself into the financial sector. Now it is having a hard time getting out.

Government officials say they are formulating a plan to sell Seoul’s 57% stake in Woori Finance Holdings Co., which is valued at $5.8 billion as of Monday’s closing market prices. Woori Finance Chief Executive Officer Lee Pal-seung told reporters last week that the government had other potential ways to sell the shares, including sales to South Korean citizens.

The government halted the sale process last year despite receiving 11 initial bids, after the lead bidders pulled out, …