Emphasizing Value-Up Execution Including Dividends
Explaining Management Plans After Securities and Insurance Acquisitions
Expanding Meetings with Overseas Investors Starting with Hong Kong IR
"We will actively communicate our commitment to value-up initiatives to overseas investors."
On May 23, Lim JongRyong, Chairman of Woori Financial Group, told Asia Economy, "The acquisition of the insurance companies has served as a good opportunity for our overseas IR activities, and I am traveling abroad to thoroughly explain our future management plans."
Chairman Lim will visit Indonesia and Hong Kong for five days starting on the 26th. This move is seen as a resumption of overseas IR activities to explain the completion of major mergers and acquisitions (M&A). In Indonesia, he plans to visit the local subsidiary in person, and then travel to Hong Kong to meet with key shareholders and investors.
Woori Financial Group recently received conditional approval from the Financial Services Commission for the acquisition of Tongyang Life and ABL Life. Last year, Woori Financial Group formally launched Woori Investment & Securities after Woori Comprehensive Financial (Woori Jonggeum) acquired Korea Post Securities. Chairman Lim emphasized that M&A activities are of great interest to overseas investors, and he intends to explain the completion of the acquisitions, post-merger integration (PMI), and future management plans.
Woori Financial Group will soon begin detailed due diligence on Tongyang Life and ABL Life. This process will include not only financial due diligence, but also an examination of key areas closely related to insurance company management strategies, such as personnel and organizational infrastructure. The group will also review the possibility of integrating Tongyang Life and ABL Life based on the findings of the detailed due diligence.
Chairman Lim reportedly stated in a post-acquisition executive meeting that he plans to reduce Woori Financial Group's reliance on its banking business to 70%, a level similar to Shinhan Bank. Currently, 95% of the group’s net profit comes from Woori Bank. Compared to other major commercial banks?Hana Bank at 80%, Shinhan Bank at 70%, and KB Kookmin Bank at 60%?Woori Financial Group’s dependence on banking is significantly higher.
The financial industry expects that synergies among Woori Financial Group's affiliates will expand following the M&A. Woori Bank has recently been aggressively marketing Woori Investment & Securities. It is also reported that Woori Bank's WM (Wealth Management) division has already held meetings with the insurance companies, considering potential collaboration.
In addition, Chairman Lim plans to emphasize Woori Financial Group’s determination to implement value-up initiatives, rather than just the policies themselves, during his visit to Hong Kong. He will communicate with investors regarding the execution of shareholder return measures, such as dividends. This overseas IR activity was initiated directly by Woori Financial Group without a lead manager, reflecting Chairman Lim’s intention to meet overseas investors in person.
A Woori Financial Group official explained, "This is not a conference or a regular event attended together with other financial holding companies, but a one-on-one meeting between Chairman Lim and key shareholders of Woori Financial Group. Starting with this IR event in Hong Kong, we plan to meet and communicate with more foreign investors."
Meanwhile, as of May 21, the foreign ownership ratio of Woori Bank stood at 45.21%. This marks a 7.14 percentage point increase since the end of 2023, when it was 37.96%.
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