President Lee Kwang-goo of Woori Bank.(Photo: Woori Bank)

President Lee Kwang-goo of Woori Bank unveiled an eight-point management strategy for the second half this year. 

The comprehensive plan includes securing customers with excellent financial standings, boosting healthy assets, securing low-cost deposits, increasing non-interest earnings, global market growth in terms of quality and quantity, spurring tie-ups and lump-sum-type business deals, vitalizing Webee platform, cutting costs, and enhancing staff’s capacity for work.

In the first half, the bank reported net profit totaling over 1 trillion won, coupled with improved soundness and growth prospects. The president concluded that the bank has evolved into a completely different financial entity. 

At a second half strategy meeting in July, the president used a popular Koean metaphare, saying that enough rain drops have accumulated to create a sea big enough to sail ships; he called on everyone at the bank to unite and set sail on the Woori Financial Group Fleet in the second half of 2017.

The bank generated 1 trillion won in net profit in the first half, but non-banking sector earnings came to only 6 percent of total net profit, making it imperative to create a holding company to boost non-banking sector earnings by strengthening the competitive power of its non-banking affiliates.

Woori Bank took steps to turn itself into a holding company by setting up a special purpose company to take over Aju Capital and Aju Savings Bank. 

The bank will not cease efforts to acquire a securities firm, although its bid to takeover High Investment Securities had to be suspended due to a price difference. They have also been looking into a plan to turn Woori Finance into a securities firm.

President Lee has made moves to double-up the bank’s overseas operation to earn more profit. Lee invited foreign investors to invest in stakes in Woori Bank after it is turned into a holding company.

In April, the bank held an investor relations session for retirement funds in Britain and France to explain the bank’s performance results and prospects for the future.

The president called on 31 institutional investors in Britain in February, 10 institutional investors in the U.S. in May, and met with six Japanese institutional investors in June to keep them updated on the bank’s current status and strategies for the future in support of the bank’s moves to transition into a holding company in the near future.

Woori Bank's plan to transform into a holding firm is picking up momentum, as it has selected advisers for legal and accounting issues. According to the Seoul-based lender Sept. 8, it appointed Kim & Chang and Samil PricewaterhouseCoopers as its consultants to introduce a holding firm system.

"The two advisers will study the feasibility of our transformation into a holding company format," a Woori official said.

The move came after the Feb. 28 meeting between Woori Bank's officials and outside directors, who oversee the bank's management. They are newly appointed by shareholders, who bought 4 percent-plus stakes in the bank previously owned by the government. According to sources, the bank has conducted its own feasibility study to explain the results to outside directors.

"What is clear is that outside directors were on the same page as Woori regarding the holding firm scheme," an outside director of Woori told The Korea Times newspaper. "We have carried out a reality check on the idea to learn its potential benefits."

According to him, the Korea Deposit Insurance Corporation holds "the key" in the decision making process, because the government-run deposit insurer still has the largest 21.4 percent stake in the bank, though it sold its 29.7 percent stake to seven entities in 4 to 6 percent lots last year. The KDIC has to sell its shares for at least 15,000 won in order to fully retrieve taxpayers' money that was poured into the bank. Woori was trading at 13,400 won as of Sept. 8.