[Special Stock] Woori Financial Group Hits Record High on Expectations of Insurance Company Acquisition Effect

Woori Financial Group continued its upward trend for the fourth consecutive day, setting a new 52-week intraday high.

As of 10:15 a.m. on May 7, Woori Financial Group was trading at 17,980 won on the Korea Exchange, up 260 won (1.47%) from the previous session. During the session, the stock rose as high as 18,060 won, marking a new 52-week high.

Expectations regarding the impact of the insurance company acquisition are believed to have influenced the share price. On May 2, the Financial Services Commission conditionally approved the incorporation of Tongyang Life and ABL Life as subsidiaries of Woori Financial Group. Along with the approval, the Financial Services Commission required Woori Financial Group to faithfully implement its "internal control improvement plan" and "mid- to long-term capital management plan," and to report the implementation status to the Financial Supervisory Service every six months until the end of 2027. The Financial Supervisory Service is required to review the implementation status and report to the Financial Services Commission once a year.

Kim Doha, a researcher at Hanwha Investment & Securities, stated, "If the two life insurance companies are consolidated into Woori Financial Group's financial statements, it is expected to result in a bargain purchase gain, an increase in consolidated net income attributable to controlling shareholders, an increase in the Common Equity Tier 1 (CET1) ratio, and an increase in risk-weighted assets (RWA)." He explained, "Ultimately, this will lead to an expansion of shareholder return capacity." He added, "With the approval of the M&A, which is one of the main investment points for Woori Financial Group, the attractiveness of dividends, another key investment point, has also increased."

Kim Jiyeong, a researcher at Kyobo Securities, said, "Since the establishment of the holding company, the upcoming growth and profit expansion through this insurance company M&A are anticipated. In addition, the proactive accumulation of provisions is expected to enhance the group's ability to respond to asset quality issues, supporting expectations for improved performance in 2025."