[New Year's Message] Sohn Tae-seung, Chairman of Woori Financial Group, "Achieving No.1 Comprehensive Financial Group through Business Innovation" (Comprehensive)

Son Tae-seung, Chairman of Woori Financial Group, and executives are paying their respects at Hongyureung in Namyangju, Gyeonggi Province, on the morning of the 1st. Since Daehan Cheonil Bank, the predecessor of Woori Bank, was established in 1899 with the inner treasury funds (royal family funds) of Emperor Gojong as its capital, Woori Financial executives visit Hongyureung every year on the first day. (Photo by Woori Financial Group)

[Asia Economy Reporter Kim Hyo-jin] Sohn Tae-seung, Chairman of Woori Financial Group (President of Woori Bank), presented "Achieving the No.1 Comprehensive Financial Group" based on business innovation as this year's management goal on the 1st. In his New Year's address that day, Chairman Sohn stated, "Customers are the reason financial companies exist and our most valuable asset," revealing this vision.

Chairman Sohn, who named innovation in customer-centered business as the first management strategy, said, "Let's reflect on whether our work procedures or the products and services we provide have neglected customer value," adding, "In organizational and employee evaluations, we will always prioritize customer value so that all executives and employees can think from the customer's perspective first."

He also said, "Some funds sold by Woori Bank caused great concern to customers who trusted and believed in us," and urged, "Including myself as chairman, all executives and employees of the group must deeply reflect on this matter together."

Regarding the group's continuous growth engine, Sohn said, "Last year, the CIB within the group was newly launched and an asset management company was newly incorporated, so through collaboration among group companies, we must demonstrate Woori Financial Group's presence in the IB market," and encouraged, "In asset management as well, let's turn last year's regrets into an opportunity for a turnaround and become a leader in asset management through comprehensive innovation."

Furthermore, marking the second year of the group system, Chairman Sohn expressed his intention to continue strategic mergers and acquisitions (M&A), stating, "This year, we will speed up not only small and medium-sized M&A such as capital and savings banks but also portfolio expansion that can elevate the group's profitability to a higher level, including securities and insurance."

Meanwhile, the Woori Financial Executive Candidate Recommendation Committee unanimously recommended Chairman Sohn as the sole candidate for the next chairman with a three-year term on the 30th of last month. Thus, Chairman Sohn will continue his position through the board of directors and the shareholders' meeting in March next year.

Below is the full text of the New Year's address.

Dear Woori Financial Group family! The meaningful year 2019 has passed, and the new year 2020 has dawned. Like today's brilliantly rising new year, I hope that all 20,000 family members and customers who love Woori Financial will have a hopeful year.

2019 was a special year when a new history of Woori Financial Group began. At the beginning of the year, we successfully launched the holding company and were reborn as a group system. Through an active portfolio expansion strategy, we newly incorporated two asset management companies and a real estate trust company into the group, beginning to establish the stature of a genuine comprehensive financial group. We expanded the group's overseas network to 474 locations, accelerating global market expansion, and continued to promote digital innovation for customers.

Despite very difficult internal and external management environments, we achieved the highest-ever financial performance in profitability, growth, and soundness. This is thanks to all family members doing their best in their respective positions, and I thank you once again for your hard work. On the other hand, 2019 was also a year of great regret.

Above all, some funds sold by Woori Bank caused great concern to customers who trusted and believed in us. Including myself as chairman, all executives and employees of the group must deeply reflect on this matter together.

Dear family members! This year, the environment surrounding the financial sector is still challenging. While external uncertainties are prolonged, the three lows of low growth, low interest rates, and low inflation continue, and both domestic and international economies are in simultaneous recession. In addition, innovative digital financial environments such as open banking and the third internet-only bank are maturing further, and fierce competition is expected not only with existing financial companies but also with ICT companies.

As we welcome the new year, I urge all family members to renew their determination together. We have set this year's management goal of Woori Financial Group as "Achieving the No.1 Comprehensive Financial Group through Customer Trust and Innovation," and we will actively pursue seven management strategies in unity with you.

The first strategy is "Customer-Centered Business Innovation." Customers are the reason financial companies exist and our most valuable asset. We will reflect on whether our work procedures or the products and services we provide have neglected customer value. In organizational and employee evaluations, we will always prioritize customer value so that all executives and employees can think from the customer's perspective first.

The second is "Risk Management/Internal Control Innovation." There is a saying, "Risk and opportunity always come together." Only companies that manage risks well and have thorough internal controls can gain greater opportunities.

All group companies must have a "comprehensive check & balance system" where multiple departments can cross-check issues related to risk management or internal control, proactively respond to soundness management, and become the most reliable and trustworthy No.1 financial group.

The third strategy is "Strengthening Sustainable Growth Engines." For a financial company to sustain growth, its core financial business must be solid, and at the same time, it must have a competitive edge in new growth business areas for the future.

Last year, with the new launch of CIB within the group and the incorporation of an asset management company, let's demonstrate Woori Financial Group's presence in the IB market through collaboration among group companies, and in asset management, let's turn last year's regrets into an opportunity for a turnaround and become a leader in asset management through comprehensive innovation.

The fourth strategy is "Strengthening Business Portfolio." This year, marking the second year of the group system, we will continue to pursue strategic M&A, and the BIS ratio will be further stabilized through internal rating system approval.

In 2020, we will speed up portfolio expansion that can elevate the group's profitability to a higher level, including not only small and medium-sized M&A such as capital and savings banks but also securities and insurance.

The fifth is "Leading Digital Innovation." Now, in any industry, "digital transformation" is no longer a temporary trend but a survival strategy. Recently, with the implementation of open banking services, various fintech companies have introduced innovative services combined with banks' unique payment functions, and the third internet-only bank will launch within this year, bringing a digital big bang to the financial sector in 2020.

With the determination that the group's future depends on digital innovation, we must differentiate the group's digital platform and proactively expand innovative businesses utilizing new digital technologies such as AI and blockchain.

The sixth strategy is "Global Business Level Up." Utilizing the group's gradually expanding portfolio, please continue quantitative growth by promoting joint entry of group companies into high-growth promising regions.

Also, in Southeast Asia, where a stable business base has been established, we will accelerate qualitative growth based on global risk management.

Finally, the "Woori Together Synergy Expansion" strategy. The success or failure of the group system transition ultimately depends on synergy creation. With the foundation of a comprehensive financial group established, strengthen collaboration among group companies to discover new business opportunities. In particular, the five major businesses?global, digital, CIB, asset management, and pensions?operated comprehensively at the group level, should gather the best capabilities from each group company to create market-leading competitiveness this year.

Also, in the area of social responsibility, all executives and employees of the group should unite their efforts to lead social responsibility so that customers smile warmly just by hearing the name Woori Financial Group.

Dear family members! We have many plans and strategies for 2020, each very meaningful and important. However, the more important mission ahead is to regain the trust and confidence of customers who cherish and love Woori Financial.

In the Analects, chapter "Xue Er (學而)," there are four-character idioms: "Bonrip Doseong (本立道生)" and "Gyeongsa Isin (敬事而信)." They mean that if the foundation is firmly established, the way forward naturally appears, and that whatever you do, do it with sincerity and trust.

When carrying out all tasks, always thoroughly adhere to basics and principles, sincerely serve and respect customers, and regaining trust is the duty of all of us, including myself, and the top priority of Woori Financial Group this year. Before starting the first workday of the new year, I hope all executives and employees of Woori Financial Group reflect on the right path of finance in their hearts.

In 2020, I wish all 20,000 executives and employees of Woori Financial Group good health and happiness, and sincerely hope that all customers who trust and do business with us will also have a meaningful year with Woori Financial Group.

Happy New Year.

2020. 1. 2 Chairman Sohn Tae-seung

This content was produced with the assistance of AI translation services.