Sept. 3 (Bloomberg) -- Woori Finance Holdings Co. denied a report it’s close to investing about $300 million in a private equity fund Blackstone Group LP is raising and said it suspended reviewing the investment until further notice.

Maeil Business Newspaper today reported Woori Finance Chairman Lee Pal Seung will visit New York on Sept. 8 to seal the deal with Blackstone, citing financial industry officials it didn’t identify. Lee has canceled the New York trip, Woori spokesman Jeong Jun Beom said in an interview today.

Woori Finance, based in Seoul, stopped the review because it isn’t convinced global securities markets have recovered from the credit crisis, Jeong said. Peter Rose, a spokesman for Blackstone in New York, didn’t immediately respond to an e-mail seeking comment.

The South Korean government, which owns 73 percent of Woori Finance, is reviewing the company’s performance after it racked up losses on investments in credit default swaps and collateralized debt obligations. The nation’s financial regulator said last week it may penalize former Chief Executive Officer Hwang Young Key because of the losses.

Blackstone, the world’s biggest buyout company, said in October it will invest $2 billion in South Korea in its first foray into the country. The New York-based firm teamed up with South Korea’s National Pension Service to invest in local companies, real estate and infrastructure projects.

To contact the reporter on this story: Bomi Lim in Seoul at blim30@bloomberg.netSeonjin Cha in Seoul at scha2@bloomberg.net;

Last Updated: September 2, 2009 22:17 EDT