Woori Bank "962 Billion KRW Derivative Trading Valuation Loss... Reflected in Q2 Earnings"

"Hedge Strategy Executed but Loss Incurred... Unrelated to Customer Loss"

Woori Bank incurred an evaluation loss of 96.2 billion KRW during the operation of equity-linked securities (ELS).

According to Woori Bank on the 8th, following an internal risk management inspection conducted in June, the bank recognized an evaluation loss of 96.2 billion KRW resulting from derivative transactions related to equity-linked securities (ELS) products managed by Woori Bank's trading department due to market price fluctuations, and reported this to the Financial Supervisory Service.

A Woori Bank official explained, "To recover the evaluation loss, we implemented a hedging strategy by expanding long-term option transactions, but due to continued volatility in the financial markets, we were unable to recover the evaluation loss," adding, "The inspection confirmed the evaluation loss of 96.2 billion KRW, which was reflected in the second quarter's results." Woori Bank also stated, "The currently reflected loss may be reduced depending on future market conditions."

Woori Bank further stated, "This case involves investment transactions between the bank and securities firms, so it is completely unrelated to customer losses," and added, "Since July, we have completely suspended stock derivative transactions except for hedge transactions aimed at liquidation."

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