Woori Bank Selected as Foreign Currency Transaction Bank for Korea Teachers' Credit Union
Woori Financial Group decides to roll up sleeves to make Korean version of New Deal a “big success”
Sohn Tae-seung, chairman of the Woori Financial Group, speaks at the 2020 Second Half Management Strategy Workshop for the Second Half of 2020 at Synergy Hall of Woori Bank Headquarters on Aug. 3. (Photo: Woori Financial Group)
Woori Bank was recently selected as the foreign currency transaction bank for the Korea Teachers' Credit Union, which manages 14 trillion won in overseas assets, said sources in the financial sector on July 28.
The Korea Teachers’ Credit Union selected its foreign currency transaction bank for the first time. Woori Bank became the first commercial bank to manage foreign currency funds for the Korea Teachers’ Credit Union.
The Korea Teachers' Credit Union picked Woori Bank as its foreign currency transaction bank since Woori Bank established and managed foreign currency coffers for the National Pension Service, is the main creditor bank for a large number of Korean companies and boasts the largest number of overseas branches (477 in 23 countries), financial industry watchers say.
Recently, a briefing session on the selection of a bank to manage the coffers for Busan City Government was held. Previously, Seoul-based commercial banks did not show much interest in attracting Busan, but they participated in the briefing session en masse, signaling fierce competition in the future.
For banks, if they succeed in attracting an organization, they can operate its funds stably and secure its members as customers.
“The budget of large institutions such as local governments is hundreds of billions of won to trillions of won, and their average daily balance is at a significantly high level even if deposits and withdrawals occur from time to time,” said an official of a commercial bank. “Institutional coffers boost banks’ liquidity and Bank for International Settlements (BIS) ratios.”
In the meantime, Woori Financial Group announced on July 26 it will actively participate in a Korean version of the New Deal being promoted by the government by supporting not only the digital New Deal sector such as fostering untact industries but supporting the green New Deal sector such as the new and renewable energy and eco-friendly industries.
“We will do everything we can do to make successful the Korean version of the New Deal policy which will become a new paradigm for the Korean economy,” said Woori Financial Group Chairman Sohn Tae-seung during a breakfast meeting between the chairman of the Financial Services Commission and the chairmen of the five largest financial holding companies on July 23.
To this end, Woori Financial Group decided to devise support measures and strengthen cooperation among group affiliates so that funds can be supplied smoothly to the Korean version of the New Deal as well as to give support to innovative financing through the “Innovative Financial Promotion Committee.”
With respect to support for the Korean version of the New Deal, Woori Financial Group will take the lead in transforming the Korean economy into a digital economy through active financial support in three major areas - revving up the data, network, AI (DNA) ecosystem, digitalizing social overhead capital (SOC) and fostering untact industries.
As a concrete measure, the financial group plans to activate data transactions to enhance the utilization of financial data as semi-public goods, develop supply chain financial products for small business owners in the online market and support low-cost online sales channels to support the digitally marginalized.
In addition, in the Green New Deal sector, Woori Financial Group will expand investment in the new and renewable energy and eco-friendly industries to sincerely play its original roles as a financial group growing with society and actively participate in helping Korea march towards a sustainable economy.
To that end, the government will set up and operate the Green New Deal Investment Platform by considering financial support from the beginning of a company and expand financial support to foster the eco-friendly and green industries.
Meanwhile, in order to actively support the Korean version of the New Deal, Woori Financial Group plans to provide a total of 10 trillion won in loans and investments - 3.3 trillion won to the Digital New Deal sector, 4.5 trillion won to the Green New Deal sector and 2.2 trillion won to the Safety Net sector - in addition to current Innovation Finance which will provide 20 trillion won for three years.