Woori Financial Group Incorporates Woori Financial Capital as 100% Subsidiary

Woori Financial Capital Purchases 3.59% of Treasury Shares... Stake Increases to 90.47%
Comprehensive Stock Swap Resolved... New Shares of Holding Company to Be Issued to Capital Minority Shareholders

[Asia Economy Reporter Junhyung Lee] On the 21st, Woori Financial Group announced that its board of directors resolved to incorporate Woori Financial Capital as a 100% subsidiary of Woori Financial Group.

On the same day, Woori Financial Group purchased 3.59% of Woori Financial Capital's treasury stock, raising its ownership stake in Woori Financial Capital to 90.47%. According to the company, this purchase allows Woori Financial Capital to strengthen its capital by the amount of treasury stock sold, which is deducted from equity capital, thereby enabling it to enhance profitability through future asset growth.

The board also resolved a comprehensive stock exchange plan. This is a small-scale stock exchange method where the holding company issues new shares and delivers them to minority shareholders of Woori Financial Capital. If Woori Financial Group obtains board approval in July and completes the stock exchange by August, Woori Financial Capital will be fully incorporated as a wholly owned subsidiary.

A Woori Financial Group official stated, “We decided to pursue full subsidiary incorporation to enhance management efficiency of Woori Financial Capital, which was incorporated as a subsidiary on December 10 last year, and to increase shareholder value through strengthening group unity.” He added, “Woori Financial Capital will be able to more swiftly implement management strategies aligned with the group’s strategy and create synergies among subsidiaries. Woori Financial Group expects an increase in net income through strengthening the group system and expanding controlling shareholder equity, which will enhance shareholder value.”

Woori Financial Capital is a specialized credit finance company established in 1994. Last year, it recorded total assets of 7.8 trillion KRW, net income of 96.7 billion KRW, and a return on equity (ROE) of 12.3%.

Meanwhile, on the same day, Woori Financial Group disclosed that it will additionally acquire 2,064,059 shares of its subsidiary Woori Financial Capital for approximately 23.7 billion KRW. The scheduled acquisition date is the 24th of this month.

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