Chairman Sohn Tae-seung of Woori Financial Group. (Photos: WFG)

Woori Financial Group said July 22 that it recorded a net profit of nearly 1.18 trillion won ($1.53 billion) for the first half of the year, marking a new high. Second-quarter net income increased 7.6 percent on-quarter to 610.3 billion won.

An official at the firm explained that they improved their financial structure by expanding core deposits and boosting noninterest income business centered around asset management.

The group’s commercial banking subsidiary Woori Bank reported a net profit of 1.2 billion won in the same period, while Woori Card and Woori Investment Bank each posted a net profit of 66.5 billion won and 22.2 billion won.

The announcement comes after Woori in January became Korea’s fifth financial holding entity after KB, Shinhan, Hana and NH NongHyup.

Korea’s Woori Financial Group Inc. reported its second-quarter net income grew 7.2 percent from the previous quarter, keeping up solid growth since transition into full-fledged holding structure from the beginning of the year. Operating income gained 5.0 percent on quarter to 876 billion won while revenue added 5.2 percent to 1.82 trillion won. Shares of Woori Financial Group closed July 22 unchanged at 13,800 won in Seoul on the earnings report.

For the January-June period, the company posted 1.18 trillion won in net profit, a record-high on normalized basis. Operating profit was 1.7 trillion won and revenue reached 3.5 trillion won for the period.

It is the company’s first release of half-year results since it turned into a holding entity in January this year.

The finance conglomerate attributed its solid performance to rising prime asset ratios and low-cost deposits as well as growth in non-interest incomes supported by strong performance in wealth management.

Interest income for the first half reached 2.9 trillion won, with loan sales to small and medium-sized enterprises added 6.0 percent from the end of last year.

South Korea’s Woori Financial Group Inc. will establish a venture capital firm within the year and place it under the holding entity to boost its support for promising startups, as part of its plan to invest 33 trillion won over the next five years to incubate startups.

Woori Financial Group decided to set up a venture capital subsidiary to integrate startup supporting businesses and enhance expertise and efficiency.

It has been strengthening its group-wide support for innovative startups by assigning Woori Bank to deal with loan and investment business for new technology financing, and Woori Investment Bank and Woori Private Equity Asset Management to ramp up related investment.

The group earlier pledged 2.1 trillion won for the next five years through various programs including direct and indirect investment and funds. It will also create a 100 billion won worth fund raised by Woori Investment Bank and run by Woori PE to support startups and small firms with great growth potential.

It plans to operate a fund first to strengthen expertise and capability of its workers and utilize the talents in the venture capital subsidiary that will be established by the end of the year. The new firm will take up technology financing business from Woori Bank.

The lender last year financed total 15 billion won to 20 to 30 startups engaging in new technology businesses.

A view of the building in downtown Seoul where Woori Financial Group has offices.