Woori Bank to expand in Southeast Asia, Middle East, Europe

Woori Bank headquarters in central Seoul [WOORI BANK]

Woori Bank on Wednesday vowed to increase its presence in Southeast Asia, Middle East and Europe, where it aims to target local customers and finance Korean companies operating businesses in those regions.

Woori Bank will raise its net profit from its overseas branches by 25 percent by 2030, from an estimated 15 percent this year, according to Yun Seog-mo, executive vice president of Woori Bank’s global business group during a press conference held at the bank’s headquarters in central Seoul.

Woori Bank operates businesses in 24 countries. Net profit raised overseas totaled $340 million last year. Its first overseas branch was in Tokyo in 1968.

“Around 60 to 70 percent of the overseas profit is expected to be raised from the three corporations in Southeast Asia,” Yun said.

Woori Bank’s major overseas markets are in Indonesia, Vietnam and Cambodia, where it saw an average annual growth of 32 percent in net profit over the past three years. Southeast Asia is its "second home," Yun added.

Woori Bank will push for mergers and acquisitions and increase capital to expand its presence in Southeast Asian countries.

The bank’s next targets are Poland and the Middle East, where it plans to finance Korean companies operating business in the regions.

“A lot of Korean battery and defense companies are entering Poland and Hungary, and we see that as a huge opportunity.” Yun added, “As for the Saudi Arabian market, our primary target will be Korean construction companies operating businesses in the region.”

It is eyeing the NEOM city, a mega project to build an eco-friendly urban city planned by Saudi Arabia.

Woori Bank opened an office in Poland in 2017 and a branch in Bahrain, situated in the Persian Gulf between Saudi Arabia and Qatar, in 1983. Woori offers offshore banking in Bahrain.

It plans to use its offices in Bahrain and Dubai to finance Korean companies taking part in the construction project in Saudi Arabia.

Non-banking Woori financial companies will also enter the overseas market.

Woori Financial Capital, which offers financial leasing to consumers and commercial entities, is expected to make its first overseas entrance in India next year through a joint venture with a local firm. It said the auto finance market in India has huge potential, where the penetration rate for vehicles accounted for 8.5 percent of the country's 1.4 billion population as of last year.

Woori Card will enter Vietnam and Cambodia as early as next year, where it will provide auto finance and microcredit services.

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Woori Bank headquarters in central Seoul [WOORI BANK]

BY JIN MIN-JI [jin.minji@joongang.co.kr]