Woori Bank "Achieving 25% Global Revenue Share by 2030"

Global Competitiveness Enhancement Strategy Announcement
Focused Development on Indonesia, Vietnam, Cambodia
Plan for $500 Million Capital Increase

M&A Strategy Following Acquisition of Small Corporations
Goal to Become Leading Bank through Phased Market Entry

Woori Bank has set a goal to increase the proportion of profits from global markets, including Southeast Asia, to 25% by 2030. To achieve this, the bank plans to implement a focused growth strategy by injecting $500 million in capital into its three major subsidiaries in Indonesia, Vietnam, and Cambodia in the first half of next year.

On the 25th, Woori Bank held a ‘Global Competitiveness Enhancement Strategy Presentation’ at its headquarters in Jung-gu, Seoul, announcing its aim to achieve a 25% share of global profits (based on net income) by 2030. As of the end of last month, Woori Bank operates 466 subsidiaries and branches across 24 countries. As of the end of last year, it recorded total assets of $34.8 billion and net income of $340 million. This year, the share of global profits stands at around 15%.

To reach this target, the bank will first focus on supporting the rapid growth of its three major Southeast Asian subsidiaries (Indonesia, Vietnam, Cambodia). Capital increases for these subsidiaries are actively being considered for the first half of next year, totaling $500 million, with $100 million to $200 million allocated per subsidiary. Additionally, the bank plans to expand corporate finance and retail banking in a balanced manner while broadening networks with Korean companies and local customers. Shortly after the appointment of President Cho Byung-kyu in July, the bank established the Southeast Asia Growth Business Division to oversee these subsidiaries and provide support. Based on this, the bank aims to become a ‘Top 10 bank’ in Indonesia, a ‘leading foreign bank’ in Vietnam, and a ‘Top 5 bank’ in Cambodia.

The core of the growth strategy is ‘organic growth and mergers & acquisitions (M&A).’ The bank plans to first pursue organic growth through the acquisition of small subsidiaries, followed by mergers with local financial companies. Yoon Seok-mo, head of Woori Bank’s Global Group, explained, “The reason for a phased approach is that overseas markets have legal regulations and financial environments that are completely different from those in Korea, so it is necessary to fully understand these markets and prioritize risk management.” He added, “With this strategy, we will enter the ranks of leading local banks.”

The next regional hubs have been set as Poland and the Middle East. In Poland, where defense exports are rapidly growing, the bank plans to upgrade its office to a branch to promptly respond to local financial demands arising from the expansion of domestic companies’ weapons exports. Yoon explained, “Upgrading to a branch allows us to receive higher credit ratings and loan limits from Polish financial authorities, enabling smooth financial support for Korean companies.” In the Middle East, where mega development projects such as NEOM City are underway, the bank will also pursue investments in venture capital funds.

Customized sales strategies by region and customer segment will also be implemented. In New York, London, Tokyo, and Hong Kong, the bank will selectively handle high-quality investment banking (IB) and strengthen fundraising capabilities at overseas branches. In Europe, it will leverage its entire network to expand IB and local corporate sales. In India and Bangladesh, the bank will focus its sales efforts on key customer groups such as local companies and small personal loans.

The bank also pledged to strengthen risk management and internal control capabilities. It will monitor risk factors by country monthly, share information with related departments, and establish response processes including preemptive measures. For loans exceeding $1 million, a system to detect signs of default is in operation, and inspections by headquarters and branches are mandatory. Through this, the bank plans to proactively reduce non-performing loans. Regarding internal controls, it will enhance inspections of vulnerable operations and conduct on-site inspections if improvements in internal control tasks lag behind. Yoon emphasized, “We will adopt the principle that ‘there is no overseas expansion without risk management’ as the ironclad rule of our global business.”

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