Chairman Sohn Tae-seung of Woori Financial Group.

Woori Financial Group will aggressively pursue acquisitions of nonbanking firms such as asset management, real estate management and mutual savings banks to boost its size and scale to compete with other groups, said Sohn Tae-seung, the group chairman.

Woori has restored its financial holding company structure after four years. It celebrated the launch recently. Sohn is also the chief executive of Woori Bank.
"As we held the event on Monday, the group will begin discussing internally and approach targets to begin deals Tuesday," the chairman said at a press conference in Seoul, Monday.

Given the nature of the deals, Sohn said the group cannot disclose the names of the targets.

But strategically, it will seek to acquire those nonbanks by itself, while going after big nonbank assets with other investors. They will seek to "jointly invest" in equities of big targets. This is because the group does not want to affect its double-digit capital adequacy ratio, Sohn noted.

"For now, the group will make small deals in the beginning, and gradually make bigger deals," he said. Its acquisition plan is part of efforts to "reorganize and rebuild" the group's business portfolio by focusing on boosting its nonbanks.
"Our weakness is that we do not have a strong nonbank. Woori Bank is the only strong subsidiary of the group," Sohn said.

The reorganization of the group's portfolio will include relocating Woori Card and Woori Investment Bank whose shares are wholly owned by Woori Bank to put them under the group's direct control in line with the regulations. The group's other key tasks will be further making inroads into new overseas markets in Southeast Asia by strengthening its investment banking, digital banking and asset management amid market saturation at home.

"We will still be aggressive at home marketing our services. But we are going to focus more on venturing overseas," Sohn said.

To this end, the chairman said the group has set up new divisions concentrating on those four key strategic initiatives ― investment banking, digital banking, asset management and global business.

It will hire professionals from outside Woori Financial Group and Woori Bank as there are limits to boosting those businesses with internal human resources.

"I always felt frustrated that we had to rotate and reposition internal human resources for reshuffling and employment. This system has hindered Woori from becoming a top-tier financial company like the global ones," he said.

Woori Financial will no longer do this, but increase employment of non-Woori professionals in digital and investment banking to be a "true financial group," he told the press.

Sohn added it will also increase risk management to maintain business stability amid an economic slowdown. This will include maintaining the financial soundness of its assets and lowering costs, while maximizing synergy among its subsidiaries.

The chairman said he could not comment about Financial Services Commission Chairman Choi Jong-ku, who said in his congratulatory speech at the event that the government will speed up the sale of its ownership in Woori Financial.

The state-run Korea Deposit Insurance Corp. (KDIC) has an 18.4 percent stake in the group. Choi also said the government will "guarantee" Woori's management independence.

 "I really can't say anything about it other than KDIC's initial plan was to sell its stake after Woori launches as a holding company," Sohn said.

A view of the Woori Financial Group’s building in Hoehyun-dong in Seoul.

(Photos: WFG)