Woori Financial Group halts acquisition of Sangsangin banks due to cost

Woori Bank office in central Seoul [WOORI FINANCIAL GROUP]

Woori Financial Group halted its review of the acquisition of two Sangsangin savings banks due to the cost, confirmed Woori on Monday.

The financial company admitted earlier this month that it was reviewing the acquisition of Sangsangin Savings Bank and Sangsangin Plus Savings Bank, the seventh largest bank in the industry combined. It had hired accounting firm Samil PricewaterhouseCoopers to review the deal, according to media reports.

The deal fell through “due to the price conditions,” said a spokesperson for Woori.

The acquisition was expected to bring up Woori’s savings bank business ranking from the current 30th to number four.

Sangsangin Savings Bank’s assets total around 3.3 trillion won ($2.56 billion), which is double the 1.6 trillion won held by Woori Savings Bank. Sangsangin Plus Savings Bank’s assets total around 1.6 trillion won.

The combined value of the two Sangsangin savings banks was estimated to stand between 400 billion won and 500 billion won. But Woori betted below 200 billion won, according to media reports.

The acquisition was expected to broaden Woori’s sales network across Korea, as Woori Savings Bank is required to raise at least 30 percent of its credit ratio in Chungcheong every month as it is headquartered in Cheongju, North Chungcheong.

Sangsangin Savings Bank operates branches in Gyeonggi, which is part of the greater Seoul area. Sangsangin Plus Savings Bank runs branches in Daejeon and Cheonan, South Chungcheong.

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