Woori Bank acquires VisionFund Cambodia

Woori Bank CEO Sohn Tae-seung answers questions at a press conference about the bank's growth plans. Korea Times file

By Kim Yoo-chul

Woori Bank said Sunday that it had acquired a financial institution in Cambodia.

The bank said in a statement that all Cambodian government regulatory requirements to acquire VisionFund Cambodia had been met.

“With the acquisition, the bank has renamed the combined entity as WB Finance,” the statement said.

Established in 2003, VisionFund Cambodia had 220 billion won ($197 million) in total assets as of May. It provides loans to retail investors and companies.

A Woori official said the acquisition would help the bank expand global operations to 410 registered overseas branches from 301 last year. This, the bank claimed made it the first Korean private lender to be listed in the “global top 20” in terms of registered overseas branches.

However, the bank did not disclose the terms of the deal

Woori said the decision was its response to growing costs and a shift in its business structure toward investment banking at a time when margins are being squeezed.

Banking industry officials believe the decision could bring substantial synergy.

With a saturated domestic market, Woori has been hunting acquisitions in Southeast Asia. Companies in Indonesia, Vietnam, as well as Cambodia have attracted strong interest from Korean banks.