[Exclusive] Chairman Im Jong-ryong Meets Foreign Investors to Personally Explain 'Insurance Company Acquisition'

Chairman Im Jongryong Holds IR Session with Foreign Investors
Questions Pour In Regarding Woori Financial's Insurance Company Acquisition
Financial Supervisory Service's Management Evaluation Decision Expected as Early as This Month
Chairman Yang Jonghee of KB Financial Also Holds IR Session
KB Financial Chairman Emphasizes Commitment to Value-Up Policy

Lee Bok-hyun, Governor of the Financial Supervisory Service (right), and Lim Jong-ryong, Chairman of Woori Financial Group (center), are attending the business agreement ceremony for fostering and strengthening the capabilities of outside directors among the Financial Supervisory Service, Korea Institute of Financial Training, Korea Federation of Banks, and financial holding companies at the Korea Institute of Financial Training in Samcheong-dong, Seoul, on the 13th, and are having a conversation. Photo by Jo Yong-jun

Im Jong-ryong, Chairman of Woori Financial Group, personally explained the shareholder return policy and strategies to strengthen the financial group's competitiveness, including the acquisition of insurance companies, to foreign institutional investors. Investors reportedly focused their questions on whether Woori Financial would acquire an insurance company.

According to investment banking (IB) and financial industry sources on the 20th, Chairman Im held a briefing session the previous day with about 20 foreign investors organized by JP Morgan. The briefing reportedly lasted nearly two hours, exceeding the scheduled time.

A senior official at Woori Financial said, "Investors visited Woori Financial Group to discuss with Chairman Im Jong-ryong topics such as insurance company acquisitions, shareholder return policies, and financial structure," adding, "They showed great interest, and questions were concentrated on whether to acquire an insurance company."

Investors showed particular interest in Woori Financial's potential 'insurance company acquisition.' They repeatedly asked whether such an acquisition was possible. When investors inquired about the insurance company acquisition, Chairman Im reportedly emphasized again that "competition among financial groups is competition of portfolios, so acquiring an insurance company is important," without giving a definitive answer.

This is interpreted to mean that strengthening the non-bank portfolio is crucial for Woori Financial's competitiveness. Among the four major financial groups, Woori Financial is the only one without an insurance affiliate. Although it recorded the second-best performance ever last year by surpassing 3 trillion won in net profit, it ranks last among the four major financial groups in terms of net profit size (3.086 trillion won). In particular, Woori Bank's net profit was 3.047 trillion won, accounting for over 90% of the group's total profit.

Accordingly, Woori Financial began acquiring Dongyang Life Insurance and ABL Life Insurance last year and submitted an acquisition approval application to financial authorities last month. The Financial Supervisory Service evaluates management status and assigns a grade, based on which the Financial Services Commission grants final approval.

Chairman Im's recent strong tightening of internal controls across all affiliates can be understood in this context. The Financial Supervisory Service requires strengthening internal controls as a prerequisite for financial companies' external expansion. In November last year, Chairman Im established an Ethics Management Office responsible for overseeing the group's ethics policy and auditing executives, and he particularly emphasized internal controls in this year's New Year's address. At the regular shareholders' meeting, a large number of outside directors are also expected to be replaced. This is interpreted as a determination to strengthen both the form and substance of internal controls.

Meanwhile, Yang Jong-hee, Chairman of KB Financial Group, also held an IR (Investor Relations) session with foreign investors. Chairman Yang reportedly strongly expressed his commitment to shareholder return policies and value-up (corporate value enhancement) plans.