Woori Financial Group considers acquisitions of Tongyang, ABL

Woori Financial Group office in central Seoul [YONHAP]

Woori Financial Group is mulling over potential acquisitions of Tongyang Life Insurance and ABL Life Insurance, the firm said Thursday.

Woori Financial Group recently signed a nonbinding agreement with the largest shareholder of the two insurers, and plans to set out on an inspection, according to the company. However, no decision has been made regarding detailed conditions for the potential acquisition deals.

Woori has been seeking to diversify its business portfolio into financial services in order to reduce its heavy reliance on a bank revenue.

In May, Woori Financial Group announced the merger of its subsidiary Woori Investment Bank and Korea Foss Securities, marking its return to the securities sector 10 years after the firm divested its securities-trading subsidiary. Woori is currently seeking approval from the financial authorities.

Moreover, the firm is also likely to participate in the upcoming main bidding for a 77 percent stake in Lotte Insurance, which is estimated to be worth 2 trillion won ($1.4 billion).

"We are considering a M&A [merger and acquisition] with Tongyang Life Insurance and ABL Life Insurance as a possible option, but nothing has been decided yet, and we plan to make announcements or issue regulatory filings if needed going forward,” said a spokesperson for Woori Financial Group.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]