Woori Financial Group Acquires Ajou Capital as a Subsidiary

Completion of Acquisition Procedures for Management Stake Including 100% Subsidiary Ajou Savings Bank of Ajou Capital

[Asia Economy Reporter Kim Hyo-jin] Woori Financial Group announced on the 10th that it has completed the acquisition process of a 74.04% controlling stake in Aju Capital from Wellto C3 Investment Purpose Company and incorporated it as a subsidiary.

Previously, Woori Financial Group signed a Stock Purchase Agreement (SPA) on October 26 and obtained approval for the incorporation of Aju Savings Bank as a grandchild company at the Financial Services Commission's regular meeting on the 2nd of this month.

As a result, Woori Financial Group now has 12 subsidiaries. With Aju Savings Bank, a 100% subsidiary of Aju Capital, also incorporated as a grandchild company, the group has effectively expanded two consumer finance-related group companies at once.

Aju Capital demonstrated strong performance last year with total assets of KRW 6.5 trillion, net income of KRW 90.9 billion, and a high return on equity (ROE) of 12.6%, leveraging its strengths in the auto finance sector.

With incorporation into Woori Financial Group, it is expected that growth will accelerate further through stabilized funding, reduced borrowing costs, enhanced risk management capabilities of the group, and collaboration systems with subsidiaries including Woori Bank.

Additionally, Aju Savings Bank is generating an annual net income exceeding KRW 10 billion, which is expected to contribute to the expansion of the group’s profit scale.

Chairman Sohn Tae-seung stated, “Despite uncertain economic conditions, Woori Financial Group has taken the lead in supporting small business owners and SMEs affected by COVID-19,” adding, “With the incorporation of Aju Capital and Aju Savings Bank, the group will play a central role in consumer finance and provide more stable financial benefits such as loans to vulnerable small and low-income groups together with subsidiaries like Woori Bank.”

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