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This is the third in a series of interviews with chairmen of the nation's top four financial groups ― Shinhan, KB, Woori and Hana ― to mark the beginning of New Year 2020. ― ED.
Chairman aims to turn Woori into universal banking group
By Kim Bo-eun
Scaling up the group by arming itself with non-banking units is a key task for Woori Financial Group Chairman Son Tae-seung this year, following the group's launch as a financial holding company in January 2019.
Last year, Woori acquired ABL Global Asset Management, Tongyang Asset Management and Kukje Asset Trust, a real estate management firm.
The group is seeking to complete the takeover of Aju Capital this year, as well as buy a brokerage and insurer.
"Expanding our business portfolio is our top priority. We will continue to monitor the market to find M&A opportunities to complete a portfolio that covers the entire financial industry," Son said in a written interview with The Korea Times.
"We will seek M&As that require low capital but can maximize synergy with existing units."
The group expects its recent acquisitions and additional plans for M&As will continue to attract foreign investors. The percentage of the group's foreign investors grew to 30.21 percent as of Jan. 3, up from 27.3 percent in January 2019.
Son is set to serve a second term as group chairman after the holding company's committee put forward the incumbent chairman as the only candidate for the position Dec. 30.
New sources of profit
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For this, the bank is strengthening its corporate and investment banking businesses.
"We will seek more opportunities toward this end through boosting cooperation among units in the group and through expanding the trading business," said Son who concurrently serves as CEO of the lender.
The group has set up nine IB centers in New York, London, Singapore, Sydney, Dubai, Ho Chi Minh City, Mumbai, Dubai and Frankfurt in recent years to play a supporting role.
The other pillar is generating profits from expanding its overseas businesses.
"We will seek qualitative growth based on the largest foreign network for a Korean financial group," the chairman said.
Woori had 465 outlets in 26 countries as of November.
"We plan to expand our portfolio centered on emerging markets, in line with the government's policy to strengthen cooperation with Southeast Asian countries."
Woori group has been expanding its network in the region, including in Vietnam, the Philippines and Cambodia. About 85 percent of its outlets are already concentrated in the area.
"We expect our network that has been set up and our subsidiaries' localization strategy to create synergy fueled by the growth in the region," Son said.
The group plans to actively seek M&As in Southeast Asia, to secure a diverse customer base and create synergy with its bank subsidiaries.
In terms of services, the bank is aiming to expand its line-up in retail banking based on customers' life cycles, including mortgages or car loans.
The bank is also seeking to expand and enhance its mobile banking services, as it lacks branches compared to major local lenders.
It plans to collaborate with other sectors to come up with digital products and services.
Adapting to digital era
Woori plans to consolidate its digital division as a core part of its bank, based on the autonomy the unit was provided last year in project decisions and budget management.
"The bank will seek to expand digitization from retail banking to corporate finance and asset management this year," Son said.
The bank will also seek to collaborate with local and global financial platforms and payment companies to boost product development and marketing.
Furthermore, it plans to continue to upgrade its mobile app for foreign customers and expand mobile-based financial services such as overseas remittance, to further attract and enhance services for resident foreigners.
Meanwhile, the group is making efforts to innovate its corporate culture to align itself with the fast-changing era.
It introduced an Ombudsman system through which staff at bank branches can deliver their thoughts to management, as well as set up an online platform where employees and executives can share their thoughts anonymously. The group is seeking to identify areas of improvement through such channels.
Customer trust
The bank's mis-selling of certain high-risk financial derivative options that caused major losses for investors last year dealt a blow to its reputation.
The bank has pledged to make bank-wide efforts to overhaul its sales system that focused on sales staff's achievements amid increased competition among local banks.
Woori plans to put greater weight on customer satisfaction in its performance evaluation of staff and change its sales practices.
"We will make bank-wide efforts to protect the rights of customers and provide customer-centered financial services," Son said.
"Regaining customer trust is one of the bank's top priorities for 2020."
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