Kwon Kwang-seok (right), president of Woori Bank poses for a photo shoot with Choi In-hyuk, CEO of Naver Financial after signing an agreement on developing digital convergence products and providing platform financial services for small business owners by combining finance and platform technology on February 24. (Photo: Woori Bank)

Woori Bank announced on Feb. 24 that it signed an agreement on giving financial support to small business owners with Naver Financial, a financial subsidiary of Naver, the largest internet online portal in Korea.

The signing ceremony was attended by key officials from both companies, including Woori Bank president Kwon Kwang-seok and Naver Financial CEO Choi In-hyuk. Kwon and Choi agreed to actively cooperate in developing digital convergence products and providing platform financial services.

The two companies plan to launch Woori Bank’s exclusive loans for small business owners who sell goods through the Naver Smart Store on the internet as their first joint project.

Sometimes online operators find it difficult to receive loans from banks despite their strong ability to repay loans.

But the launch of the exclusive loans will allow them to borrow money more efficiently.

In addition, they plan to launch a bank account with an overdraft line of credit so online shopping business operators will can get their hands on necessary business funds in a timely manner.

Moreover, the two companies will expand financial support for small business owners by utilizing non-financial data and expanding the scope of those eligible for loans in the future.

“The COVID-19 pandemic has expedited the digitalization of all industries, and banks must quickly adapt to this trend,” Kwon said.

“We will provide competitive financial services for small business owners who open sales channels in Naver, the largest e-commerce player in Korea.”

On March 4, Woori Bank announced that it signed a business agreement on fulfilling corporate social responsibilities and developing financial business models regarding environmental, social, and governance (ESG) with POSCO E&C, a construction arm of POSCO Group in a ceremony.

On hand were high-ranking officials from both companies including Woori Bank president Kwon and POSCO E&C CEO Han Sung-hee.

POSCO E&C is founded in 1994 based on its technology to build integrated steel mills with all of steelmaking and rolling capabilities in Pohang and Gwangyang. In July 2020, the builder issued ESG bonds for the first time in July 2020.

Through this business agreement, the two companies will strengthen cooperation in the financial sector including payment guarantees and project financing (PF) for new renewable and eco-friendly energy construction projects such as solar and wind power plants.

They will also support the issuance of ESG bonds to expand eco-friendly infrastructure and cooperate to grow together in the new digital business sector through digital convergence and a combination of finance and construction.

“For the first time in the Korean banking industry, Woori Bank has strengthened the fulfillment of our social responsibilities and ESG management through agreements with construction companies,” Kwon said.

“We will actively expand support projects to rev up the ESG financial ecosystem such as cooperation in new and renewable energy development projects down the road.”

In the meantime, Woori Bank announced on March 2 that it will hold the “Our Family Walk Donation Campaign,” a non-face-to-face donation and social contribution drive with the participation of employees for the whole of March.

In this campaign, Woori Bank employees measure the number of their steps for one month with the mobile application Big Walk. The campaign will accumulate one won per step.

When the total amount reaches 100 million won, Woori Bank will donate 100 million won to environmental groups.

Moreover, Woori Bank will hold a special event such as selecting Walking King for a prize to encourage bank employees to improve their health and voluntarily participate in the event.

“This campaign is quite meaningful in that it can spread a donation culture through voluntary participation as well as enhance employees’ health at a time when the COVID-19 pandemic is hampering external activities,” Kwon said.

“We will put ESG management into practice by way of various social contribution activities.”

To top it off, Woori Bank has established an eco-friendly corporate culture involving energy conservation and a ban on the use of disposable goods.

The company is stepping up its efforts to strengthen ESG management by replacing lights in bank branches with high-efficiency LED lights and using more electric cars for the bank’s business activities.