Woori Bank Accelerates Local Market Penetration Through Merger of Cambodian Subsidiaries

[Asia Economy Reporter Kim Hyo-jin] Woori Bank announced on the 16th that after a year of preparation and approval from the Cambodian financial authorities, it has merged its Cambodian subsidiaries, WB Finance and Woori Finance Cambodia, into WB Finance.

Woori Bank plans to accelerate its penetration into the Cambodian financial market through the merger of the savings bank WB Finance and the microfinance institution (MFI) Woori Finance Cambodia.

Woori Bank entered Cambodia starting with the acquisition of Woori Finance Cambodia in July 2014. Within five years of the acquisition, Woori Finance Cambodia's total loans and net profit increased by 12 times and 14 times respectively, with the total loan amount being the largest among about 70 local competitors.

To expand its retail business base, Woori Bank additionally acquired the savings bank WB Finance, which is capable of deposit and loan operations, in June 2018. WB Finance, which has 116 branches throughout Cambodia, saw its total assets grow by nearly 60% within one year of acquisition.

Thanks to the growth of Woori Finance Cambodia and WB Finance, Woori Bank's local net profit in Cambodia increased from 4 million dollars in 2017 to 17 million dollars in 2019.

Through this merger, Woori Bank plans to enhance customers' financial convenience and accessibility by partnering with fintech and platform companies, establish a local credit evaluation system, and provide non-face-to-face exclusive products to expand its local retail business in Cambodia.

A Woori Bank official said, "The merged entity's assets and earnings rank fifth among Cambodian savings banks," adding, "We aim to convert WB Finance into a commercial bank in the mid to long term and provide comprehensive financial services in Cambodia."

Meanwhile, all Woori Financial Group companies, including Woori Bank, plan to expand overseas revenue proportion in the mid to long term through increased investment in key growth regions such as Vietnam, Cambodia, and Indonesia under the New Southern Policy, along with systematic risk management and strengthened internal controls.

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