Woori Bank headquarters. (Image courtesy of Woori Bank)
SEOUL, May 2 (Korea Bizwire) — Woori Financial Group Inc. got regulatory approval on Friday for the takeovers of two life insurance companies, on condition that the group faithfully implements its planned measures aimed at strengthening its internal control.
The Financial Services Commission (FSC), the country’s financial regulator, approved Woori Financial’s takeovers of Tongyang Life Insurance Co. and ABL Life Insurance Co., for a combined 1.54 trillion won (US$1.07 billion), paving the way for the financial holding firm to expand its business portfolio.
In August, Woori Financial inked deals to take over a 75.34 percent in Tongyang Life for 1.28 trillion won and wholly acquire ABL Life for 265 billion won.
Tongyang Life was the country’s sixth-largest life insurer with 33 trillion won worth of assets in 2023. ABL Life ranked ninth with 17 trillion won in assets.
The FSC said its evaluation showed Woori Financial’s management failed to meet regulatory requirements, but conditioned that the takeover be subject to the banking group’s steps to improve its internal control as planned.
Woori Financial is required to carry out its commitment toward enhancing the capital bases of the two insurers and report the semi-annual implementation of its plans through 2027 to the financial regulator.
The FSC is able to order Woori Financial to divest its stakes in the two insurers should the banking group fail to implement its pledges to improve internal control and fund raising.
With the approval, Woori Financial will accelerate its move to reduce its dependence on banking business, with around 90 percent of its income currently coming from Woori Bank, its flagship unit.
(Yonhap)
