Woori Investment Securities Plans Profit Structure Overhaul via Capital Increase and ABL Insurance Subsidiary Restructuring with Dongyang Life

Woori Financial Group plans to pursue a phased capital increase for its securities subsidiary and consider additional share buybacks in the second half of 2026 while maintaining a stable Common Equity Tier 1 (CET1) ratio, according to Chief Financial Officer Kwak Sung-min.

The company aims to grow Woori Investment & Securities’ equity capital to 3 trillion won by next year through staged capital injections, building on a previous 1 trillion won investment that raised the unit’s total capital to 2.2 trillion won.

This capital increase ranks Woori Investment & Securities 11th in the industry by capital size and supports its transformation into a comprehensive investment business operator ahead of its commercial paper license expiration in 2034.

Kwak stated that the securities unit’s profit growth could modestly contribute to the group’s CET1 ratio increase over the next two to three years, with return on risk-weighted assets (RoRWA) expected to catch up to the banking unit’s level this year and next year.

Thereafter, the securities unit’s contribution to the group’s RoRWA is projected to expand with a focus on retail business.

In addition to the securities unit’s development, Woori Financial plans to make Dongyang Life Insurance a wholly-owned subsidiary through a comprehensive share exchange, a move that will not significantly impact the CET1 ratio in the short term.

The company finalized its acquisition of both Tongyang Life Insurance and ABL Life Insurance in July 2025, establishing a comprehensive portfolio encompassing banking, securities and insurance.

Woori Financial expects the insurance acquisitions to enhance its financial structure by boosting asset size, profitability and the proportion of nonbanking operations.

Rather than focusing solely on expansion, the group plans to prioritize capital soundness and customer-centric innovation, including the development of innovative products and expansion of sales channels through bancassurance, general agencies and digital platforms.

The group also intends to integrate artificial intelligence and big data technologies into insurance underwriting and claims processes.

Woori Financial is estimated to gain approximately 600 billion won in accounting profits from the low-cost acquisition of Tongyang and ABL Life Insurance.

These strategic moves come as Woori Financial seeks to strengthen its growth strategy in securities and insurance while reviewing the necessity and scale of capital increases at each stage.