Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Woori chief encourages affiliates after disappointing performance in H1
Woori Financial Group Chairman Yim Jong-yong speaks during an opening ceremony of Woori Bank's branch for senior citizens, downtown Seoul, in this March 2023 photo. Yonhap
By Lee Yeon-woo
By Lee Yeon-woo
Woori Financial Group Chairman Yim Jong-yong is visiting the group's major affiliates to encourage employees in the wake of the group's disappointing performance during the first half of this year.
Starting on July 31, Yim kicked off his tour with Woori Investment Bank and then spent weeks visiting other four subsidiaries such as Woori Asset Management Corp., Woori Card, Woori Financial Capital and Woori Savings Bank. He reviewed each affiliate's first-half performance with the staff and discussed plans for the second half of this year.
The move was spurred because the group ranked near the bottom in terms of net profit among the top five financial groups. The group was even surpassed by NongHyup Financial Group, which recorded 1.7085 trillion won ($1.2 billion) in the first half of 2023. Woori, however, recorded a net profit of 1.5386 trillion won, marking a 12 percent decrease compared to the previous year. Woori's shortfall was attributed to a lack of non-interest income.
Consequently, Yim's unexpected visits, notably excluding Woori Bank, are seen as an effort to bolster its non-banking affiliates and enhance their synergy. Of the affiliates that Yim visited, all except Woori Asset Management Corp., experienced a decline in performance.
According to sources, Yim provided detailed recommendations on the future business direction of each affiliate.
At Woori Investment Bank, Yim emphasized the need for active collaboration with Woori Bank to bolster corporate finance. For Woori Asset Management Corp., he suggested honing in on core businesses, particularly retirement pensions.
During a meeting with Woori Card CEO Park Wan-sik, Aug. 3, Yim underscored the importance of enhancing the card business's competitiveness, especially since it recently established an independent payment network.
On his visit to Woori Financial Capital and Woori Savings Bank, Aug. 7, Yim advised the capital division to ensure a smooth completion of their joint venture establishment with Tata Daewoo Commercial Vehicle Company. This, he believed, would boost their competitive edge in automotive finance. Additionally, he counseled the savings bank to rigorously manage risks in order to improve its overall financial health.
Yim also emphasized the importance of each affiliate working together to enhance synergy.
Woori Bank accounted for a significant 96 percent of the group's net profit portfolio in the first half of 2023. The group is therefore actively seeking to expand into the securities and insurance sectors. As they face challenges in identifying suitable firms in the market, the group's strategy revolves around building strong cooperation among its affiliates preemptively.
"We will expand joint operations among affiliates to strengthen the group's value chain," said a Woori Financial Group official.
Officials from the group informed The Korea Times that Yim's schedule for further affiliate visits has not yet been confirmed.