Woori Financial Group to acquire 52% stake in Daol Investment

Woori Financial Group's headquarters in central Seoul [WOORI FINANCIAL GROUP]

Woori Financial Group agreed Monday to acquire a 52 percent stake in Daol Investment, a Seongnam, Gyeonggi-based venture capital firm, for 212.5 billion won ($160.8 million).

The deal will be finalized on March 23 when shareholders of Daol Investment pass the agenda at the annual general meeting.

The stake was previously held by Daol Investment & Securities, but the deal will make Woori the largest shareholder of the investment firm.

Daol Investment & Securities has been struggling from the recent liquidity crunch caused by rapid rate increases and the default of a company related to the Legoland Korea Resort developer last year.

Woori said that the acquisition will help the company’s efforts to diversify revenue streams beyond banking.

“The buyout will allow Woori to bolster its non-banking segment and become a comprehensive financial group,” the company said in a statement.

“[Daol Investment] will play an integral part in corporate financing by making investment into innovative start-ups and the so-called venture companies,” it said.

The acquiring company plans to maintain the current workforce as the role of venture capitalists is considered critical, according to the statement.

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