Woori Financial Holdings has rebranded itself as a financial holding entity on the 14th. It has become a holding company again since November of 2014 when it sold its subsidiaries during privatization process and removed the holding company.
As a result, it has become the 5th major financial holding entity after KB, Shinhan, Hana, and Nonghyup.
Woori Financial Group is going to be aggressive with M&A in non-banking segment and become one of the top financial holding companies in South Korea.
Son Tae-seung, chairman of Woori Financial Holdings and CEO of Woori Bank, introduced detailed strategies for M&A through a press conference.
“We are considering about acquiring asset management businesses, real-estate trust businesses, and savings banks.” said Chairman Son. “If it is difficult for us to acquire a large-scale company, we are going to form a consortium to acquire partial stakes and eventually acquire entire company afterwards.”
“Our goal is to become a top financial group in South Korea by actively modifying our business portfolios and pushing for global strategies and eventually become a global business that is well-respected by the world.” said CEO Son.
CEO Son emphasized that Woori Financial Holdings will be responsible for changes in South Korean financial market through digital innovation. He also explained that Woori Financial Holdings will be in the forefront of social responsibilities by helping vulnerable social groups and small and medium companies.
Woori Financial Holdings is only comprised of 4 headquarters, 10 departments, and 1 office considering the fact that it is still in its initial stage. About 80 executives and employees from Woori Financial Group will be working for Woori Financial Holdings.
Woori Financial Holdings approved a written plan at a general meeting for shareholders that took place at the end of last year for stock transfer to convert itself back to a holding company and it finished required registration on the 11th to officially become a holding company.
Woori Financial Holdings has 6 subsidiaries such as Woori Bank, Woori Finance Research Institute, Woori Credit, Woori Fund Services, and Woori PE Asset Management and it also has Woori Card and Woori Investment Bank under its arm.
For a quick transition to a holding company, Woori Financial Holdings has kept Woori Bank and others as its subsidiaries and it is planning to incorporate Woori Card and Woori Investment Bank as its subsidiaries in the future.
Woori Financial Holdings now has ability to invest up to $6.2 billion (7 trillion KRW) by becoming a holding company since a bank is only allowed to invest up to 20% of its equity capital under the Korean law.
South Korean Government has also decided to sell its remaining shares of Woori Bank as soon as possible.
“We are going to push for complete privatization of Woori Financial Holdings.” said Chairman Choi Jong-ku of Financial Services Commission (FSC) at an inauguration ceremony of Woori Financial Holdings. He expressed that South Korean Government is ready to sell its remaining shares of Woori Bank whenever conditions are set. Currently, South Korean Government has 18.4% of Woori Bank’s shares through Korea Deposit Insurance Corporation. Previously, South Korean Government sold partial shares of 7 oligopolistic shareholders that are comprised of TongYang Life Insurance, Hanwha Life Insurance, KIWOOM Securities, Korea Investment & Securities, Eugene Asset Management, and Mirae Asset Global Investments in 2017.
“We are going to guarantee self-management centered on oligopolistic shareholders until we sell our remaining shares of Woori Bank and we are going to support Woori Financial Holdings so that it can exhibit autonomy and creativity as much as it can.” said Chairman Choi.
Staff Reporter Gil, Jaeshik | osolgil@etnews.com