Woori Bank aims for 25% revenue from global markets by 2030

Woori Financial Group headquarters in Seoul / Courtesy of Woori Financial Group

Yun Seog-mo, executive vice president of Woori Bank's global business group, speaks during a press conference held in the bank's headquarters in Seoul, Wednesday. Korea Times photo by Lee Yeon-woo

Woori Bank announced on Wednesday that it aims to increase the net profit from its overseas branches to account for 25 percent of its total profits by 2030. To achieve this goal, it plans to inject $500 million in three prominent Southeast Asian corporations that are showing growth potential, and extend its presence into new areas, including Poland and the Middle East.

"As of last year, the global sector at Woori Bank reported a net profit of $340 million (15.4 percent of the bank's total profit). Throughout the past three years, the total asset value has seen a 9 percent increase annually," Yun Seog-mo, executive vice president of the bank's global business group, said during a press conference held in the bank's headquarters.

"Driving our overseas business with a deep understanding of the local market distinguishes us from our competitors."

The group plans to penetrate new markets by acquiring small-sized corporate entities, enhancing its presence gradually through a series of M&As with the ambition of emerging as a leading bank in these new territories.

Among its businesses spanning 24 countries with 466 branches and offices, Woori Bank has chosen to prioritize the development of its three main entities in Southeast Asia, based in Indonesia, Vietnam and Cambodia. Last year, these three nations accounted for 43 percent of the bank's global net profit.

In line with these efforts, the group established a department in July specializing in operations within these countries. Additionally, a capital injection of $500 million is anticipated.

For its upcoming ventures, the bank pinpointed Poland as a pivotal region. The significance of Poland was highlighted during a recent visit by President Yoon Suk Yeol, which culminated in the signing of a 30 trillion won arms export deal. Woori Bank intends to elevate its current office in Poland to branch level, aiming to support Korean businesses venturing into the region.

Through its branches in Bahrain and Dubai, Woori Bank plans to provide financial support to companies targeting business opportunities in the Middle East, such as in Saudi Arabia's NEOM economic zone. Currently, Woori's branches in Bahrain and Dubai engage in investment banking and corporate finance activities.

At the same time, the bank said it is committed to ensuring robust risk management and internal controls during its overseas business expansion.

"To enhance internal control, we will consistently gather feedback from overseas branches and conduct periodic reviews," Yun said. "We intend to implement an internal control support system aimed at incident prevention. For instance, this system will oversee the progression of internal control improvement, initiating on-site inspections when progress is deemed inadequate."