Woori group signs deal to buy Kukje Asset Trust

Woori Financial Group officially signed an agreement to acquire Kukje Asset Trust, a local real estate trust management company, the latest in the group’s efforts to bolster its non-banking segment.

The signing Friday followed a memorandum of understanding signed in April in which Woori promised to buy a controlling stake in the trust asset company.

The group said the purchase could create synergies with other Woori affiliates.

“It is expected that Woori Financial Group will expand the trust business and cooperate with affiliates including Woori Bank while helping [Kukje Asset Trust] gain better risk management know-how,” the group said in a statement.

The deal was the third buyout since Woori Financial Group was established in January.

In April, Woori Financial Group acquired Tong Yang Asset Management and ABL Global Asset Management.

Woori reformed its structure in January to build its capabilities outside of basic banking. Its bank has generated more than 90 percent of the group’s net profits and holds more than 90 percent of its assets.

Sohn Tae-seung, CEO of Woori Bank and group chairman, said the group will continue to look for more merger and acquisition candidates.

“The [Woori Financial Group] will establish an ideal set of business portfolios,” Sohn said in a statement.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]