Based on the stabilized governance structure and management autonomy, the company plans to diversify its non-banking businesses and strengthen its competitiveness as a private financial company.
On the 22nd, the Public Fund Management Committee of the Financial Services Commission held a meeting with Eugene Private Equity (Eugene PE, 4%), KTB Asset Management (2.3%), Align Partners Consortium (1%), Dunamu (1%), Woori Financial Group, Woori Employee Stock Ownership Association. (1%) decided to sell additional stakes in Woori Financial to a total of five companies.
The stake held by the Korea Deposit Insurance Corporation, which was the largest shareholder of Woori Financial Group, is reduced to 5.80% through the sale of the stake, pushing it to become the third largest shareholder after Woori Employee Stock Ownership Association and the National Pension Service. The employee stock ownership association (9.42%) and the National Pension Service (9.80%) are major shareholders, but they do not have the authority to recommend outside directors.
With the birth of a new shareholder, the composition of Woori Financial’s directors will also change. Eugene PE will be given the right to recommend one outside director by acquiring a 4% stake. In addition to Eugene PE, IMM Private Equity (5.57%), Korea Investment & Securities (3.77%), Kiwoom Securities (3.73%), Hanwha Life Insurance (3.16%), and Fubon Life Insurance (3.97%) hold outside director recommendation rights.
After March next year, the right to appoint non-executive directors of Forebo will be lost, and the board of directors will consist of two inside directors and six outside directors.
Currently, the Board of Directors of Woori Finance consists of two inside directors, five outside directors, and one non-standing director. Chairman Son Tae-seung and Senior Vice President Lee Won-deok serve as inside directors, and forecast HR Support Manager Kim Hong-tae recommended by Forecast is a non-executive director. In the case of outside directors, there are five outside directors including Roh Seong-tae, Park Sang-yong, Jung Chan-hyeong, and Jang Dong-woo, including one who was vacated by one of the outside directors recommended by Fubon.
Woori Financial Group is expected to engage in aggressive M&A based on ▲ securing management autonomy ▲ diversifying shareholder composition ▲ resolving overhang risk.
Woori Financial Group, which had the Korea Deposit Insurance Corporation (15.1%) as its largest shareholder after receiving public funds, has suffered from ‘drinks’ whenever there is a change of government or a management change, but it has secured management autonomy with this stake sale. With the recent successful approval of the ‘Internal Rating Act’, the Bank for International Settlements (BIS) standard of equity capital ratio rose by 1.3 percentage points (p), giving it more money.
Woori Financial, which has been criticized for being weak in the non-banking sector compared to other financial holding companies, will strengthen its non-banking sector with this privatization as a starting point.
Woori Financial is strongly considering establishing a securities company, venture capital (VC), and non-performing loan (NPL) company.
In a conference call held after the recent 3Q results, Woori Financial Group Executive Vice President Seongwook Lee said, “Since the lineup as a comprehensive financial group is still unfinished, we are considering acquiring a securities company and establishing a venture capital (VC) and non-performing loan (NPL) company. ” has been said.
A FSC official said, “The sale of the remaining stake in the forecast will further promote stakeholder-oriented management of Woori Financial Group.”
An official from the financial sector also said, “The participation of Eugene PE is expected to give rise to various views on Woori Financial’s management in the future.
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