Woori Bank leaps forward with improving credit ratings, rising foreigner ownership

Woori Bank is positioning corporate banking as a key driver of future growth, building on stronger capital fundamentals and growing confidence from global investors, industry officials said Monday.

Fitch Ratings has recently upgraded Woori Bank's viability rating to "a" from "a-," citing improvements in capital adequacy and risk management. The bank's long-term issuer default rating was maintained at "A" with a stable outlook, while its short-term rating remained at "F1+."

Fitch said Woori Bank's capital was less likely to come under pressure thanks to its consistent business model and improved risk profile, highlighting disciplined growth and contained asset-quality risks.

The rating agency also raised the bank’s risk profile score to "a+" from "a," citing its prudent credit risk management and solid asset quality.

The improved credit profile comes as Woori Bank CEO Jung Jin-wan emphasized strengthening the bank's capital base since taking office in December 2024.

Woori Bank operates as a fully privatized commercial bank following the government's sale of its remaining stake in Woori Financial Group, the parent company of Woori Bank, in 2021. The move ended the group's status as a state-owned financial institution, more than two decades after it received 12.8 trillion won ($9.5 billion) in government funding following the 1997 Asian financial crisis.

Foreign investor interest in Woori Financial Group has been growing in recent years.

Foreign ownership of the financial group rose to 50.06 percent as of Friday, according to the company, up from 37.9 percent in December 2023 and 29.99 percent in December 2021. The increase of 20.07 percentage points over the past five years was the largest among the country's major financial groups.

"The recent upgrades by global credit-rating agencies, including Fitch, along with foreign ownership surpassing 50 percent, reflect growing confidence among overseas investors in Woori Financial Group and its long-term growth prospects," a Woori official said.

"Our strong fundamentals, supported by disciplined risk management and active engagement with global investors, are strengthening the group's corporate value," the official said.

The rise in foreign ownership comes as Woori Financial has stepped up efforts to engage overseas investors, with Chairman Yim Jong-yong actively meeting foreign institutional investors through overseas investor-relations (IR) activities.

Yim has traveled to major financial centers including London, Hong Kong, Singapore, Japan and Taiwan for IR meetings. After meeting investors in Japan and Taiwan in June, he is scheduled to visit the United Kingdom and Sweden this week.

At home, Woori Bank is leveraging its corporate banking strength to expand financing for growing industries, in line with the government's push to channel more funds into productive business sectors.

In the first half of this year, the bank expanded cooperation with major policy lenders, including the Korea Trade Insurance Corp., the Korea Technology Finance Corp. and Korea Development Bank, to identify companies eligible for different forms of policy-linked financing.

The bank is also positioning corporate succession as a new frontier in its corporate banking business, seeking to help small and midsize companies maintain their businesses, technology and supply chains as their founders age.

In February, Woori Bank launched its corporate succession support center, the first dedicated unit of its kind in the banking industry. The center brings together experts in accounting, tax, mergers and acquisitions and corporate finance to support companies on family succession, management buyouts and third-party sales.

Woori Bank is also expanding its inclusive finance programs as part of the group's broader efforts to strengthen its role in supporting the economy.

In June, Woori Financial Group said it would expand its productive and inclusive finance programs by a combined 10 trillion won, bringing the total to 90 trillion won. The expanded program includes increased support for strategic industries, exporters and regional businesses, while broadening assistance for financially vulnerable borrowers and small businesses.