Lee Bok-hyun "Reviewing Exception Approval Conditions for Woori Financial... Actively Supporting Lee Jae-yong's Initiative" (Comprehensive)

Woori Financial Group Receives Third Grade in Management Evaluation
Reviewing Legal and Administrative Conditions for Exception Approval
FSS to Deliver Opinion to FSC Within March
IBK Inspection Results to Be Shared Before March

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Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), announced on the 19th that he would convey the FSS's opinions, including exceptions for insurance company acquisitions, to the Financial Services Commission (FSC) regarding the third-grade result of Woori Financial Group's management evaluation. He also stated that they are closely monitoring mortgage loans for multi-homeowners and gap investments in relation to the 'Joint Briefing on Housing Market Stabilization Measures' announced today.

Governor Lee held a press briefing at the FSS in Seoul that morning and said, "We are examining various possibilities and conditions for granting exception approval related to the incorporation of Woori Financial Group's subsidiaries."

Woori Financial Group Receives Third Grade... Exception Approval Conditions to be Reviewed and Delivered to FSC

The FSS notified Woori Financial Group the day before that its comprehensive management evaluation grade was lowered from grade 2 to grade 3. This information was also conveyed to the FSC.

Governor Lee explained, "The grade of Woori Financial Group is very close to the 2021 management evaluation grade, with only about a 0.1-point difference. There was concern that even a minor downward factor could cause the grade to drop."

He added, "The approval for the incorporation of Woori Financial Group's subsidiaries must be processed promptly. We plan to deliver the FSS's opinion to the FSC within March."

Lee Bok-hyun, Governor of the Financial Supervisory Service (right), and Lim Jong-ryong, Chairman of Woori Financial Group (center), are attending a business agreement ceremony on February 13 at the Korea Institute of Finance in Samcheong-dong, Seoul, aimed at fostering and strengthening the capabilities of outside directors among the Financial Supervisory Service, the Korea Institute of Finance, the Korea Federation of Banks, and financial holding companies, and are engaged in conversation. 2025.2.13 Photo by Jo Yong-jun

The FSS is currently conducting a review for the approval of Woori Financial Group's subsidiary incorporation based on the management evaluation results. On January 15, Woori Financial Group submitted an application for subsidiary incorporation approval to the FSC, which then requested the FSS to conduct the review.

To verify the legal requirements for approval, the FSS conducted fact-finding inquiries, including management evaluation grades, with the Fair Trade Commission and the relevant inspection departments. Additionally, the FSS received supplementary materials such as internal control improvement plans from Woori Financial Group and is reviewing them.

In principle, if a financial holding company's management evaluation grade is below grade 2, acquiring subsidiaries is difficult. However, Article 10 of the FSS's Financial Holding Company Supervision Regulations states that "even if the grade is below 2, if the FSS recognizes that the company can correspond to grade 2 or higher through capital increase, disposal of non-performing assets, etc., the management condition is considered sound."

Governor Lee said, "I plan to participate as one of the financial commissioners in the FSC plenary meeting and will assist to ensure there is no conflict with the FSC's decision. We will also consider the development of Woori Financial Group and the insurance industry market."

Monitoring Mortgage Loans for Multi-Homeowners and Gap Investments... Remark on Lee Jae-yong Draws Attention

Governor Lee emphasized that they are also monitoring the status of mortgage loans in relation to the 'Housing Market Stabilization Measures' announced that day. He said, "We are closely watching gap investments and mortgage loans for multi-homeowners and are setting directions to strengthen communication with the financial sector."

The Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government announced before Governor Lee's press briefing that they would expand the designation of land transaction permission zones to the entire Gangnam 3 districts (Gangnam, Seocho, Songpa) and Yongsan district. Along with this, the FSC decided to advance the reduction of the guarantee ratio for jeonse loans (90%) to start from May, earlier than originally planned.

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Governor Lee also drew attention by mentioning Lee Jae-yong, Chairman of Samsung Electronics, while positively evaluating Samsung SDI's decision on a paid-in capital increase.

He stated, "Regarding Samsung SDI's paid-in capital increase, if the securities registration statement sufficiently discloses the information investors need to know, we will process the review of the securities registration statement as quickly as possible to avoid any disruption to the investor funding schedule."

He then referred to recent remarks made by Lee Jae-yong to Samsung Group executives, saying, "Lee Jae-yong is showing leadership regarding Samsung Group's new initiatives, and the authorities will actively support and assist."

Especially, when controversy grew over Governor Lee's remarks on the amendment to the Commercial Act, he declared, "I am in a situation where I am willing to stake everything and not shy away from a difficult path," and added, "I would like to discuss what others are willing to stake if they say otherwise."

Earlier, after the Democratic Party passed the amendment to the Commercial Act in the Legislation and Judiciary Committee, opinions arose mainly from the People Power Party suggesting that Choi Sang-mok, Acting President and Minister of Strategy and Finance, be recommended to exercise the right of reconsideration. In response, Governor Lee said, "I cannot help but oppose (the ruling party's actions), even if it means staking my position."

Governor Lee pointed out, "The right of reconsideration (veto power) is the president's authority, and opinions can be given by the ruling party, the relevant ministries, and the Ministry of Justice," but added, "Since it is a matter to be decided by the president's authority, no one has the final decision-making power; everyone is 'one of them'."

He also proposed a public debate on the amendment to the Commercial Act with the Korea Economic Association. Governor Lee said, "The Korea Economic Association is sufficiently positioned to represent companies," and added, "The discourse has disappeared as it became politicized. We need to approach this through policy and systems."