Woori Financial Takes First Step into Long-Awaited Securities Business... Merger of Woori Savings Bank and POS Securities

"Ranked 18th Upon Merger, 'Aiming for Top 10 Within 10 Years'
Additional M&A Opportunities Also Kept Open
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Woori Financial Group has taken its first step into the securities industry, a long-cherished goal, through the merger of Woori Comprehensive Financial and Korea POS Securities. Woori Financial Group plans to develop the merged securities company, currently ranked around 18th in the industry, into a top 10 player within 10 years, and also intends to actively pursue additional mergers and acquisitions (M&A) to expand its capabilities if suitable securities firms become available in the future.

On the morning of the 3rd, Woori Financial Group held a board meeting and resolved to proceed with the merger of its subsidiaries Woori Comprehensive Financial and POS Securities, and to incorporate the merged entity as a subsidiary. Both Woori Comprehensive Financial and POS Securities also held board meetings and resolved to merge, with the two companies planning to sign a merger agreement with POS Securities as the surviving company.

Among the five major domestic financial holding companies, Woori Financial is the only one without a securities firm. It has been steadily exploring M&A opportunities to enter the securities business, a key pillar alongside banking for restoring its corporate finance prestige.

POS Securities, launched in 2013 as Fund Online Korea, is the largest online fund-specialized platform in Korea. It has a retail business base with 280,000 individual customers and customer funds totaling KRW 6.5 trillion. Woori Comprehensive Financial is currently the only remaining comprehensive financial company in Korea. It has been strengthening its corporate finance (IB) business capabilities and, since last year, has been preparing for entry into the securities business through a KRW 500 billion capital increase, recruitment of securities professionals, and relocation of its headquarters to Yeouido.

Upon merger, the merged securities company will grow to have KRW 10.8 trillion in customer deposit assets, 480,000 individual customers, total assets of KRW 6.6 trillion, and total capital of KRW 1.2 trillion. This corresponds to the 18th largest securities firm by equity capital in the industry. Woori Financial Group plans to officially launch the merged securities company in the third quarter of this year after obtaining merger approval from the Financial Services Commission.

Woori Financial Group plans to develop the merged securities company into a mega IB securities firm with differentiated competitiveness in both the IB and digital (retail) sectors. The IB division will combine the corporate lending capabilities based on the existing comprehensive financial business with IB investment and brokerage functions, securing early competitiveness through synergy with affiliates such as Woori Bank. The digital division plans to secure a retail customer base and differentiated competitiveness by linking with the group’s super app "New Won," scheduled for release in the second half of this year.

With this merged securities company initiative, Woori Financial Group has taken a step closer to building a comprehensive financial portfolio. A Woori Financial Group official explained, "By incorporating a securities firm as a subsidiary, which was a missing part of our business portfolio, we have completed a financial service system covering the corporate lifecycle from venture capital (VC) - capital - banking - securities - asset management - PE - F&I, and have moved one step closer to rebuilding our group’s strategic goal of becoming a leading corporate finance house."

Woori Financial Group also hinted at the possibility of acquiring additional securities firms in the future. A representative stated, "The merged securities company will be grown into a mega IB ranked in the top 10 within 10 years with full support from the holding company. If securities firms that align with the group’s strategic direction become available to complement our competitiveness, we will consider acquisitions."

This content was produced with the assistance of AI translation services.