Overview

• Woori Financial Group received conditional approval from South Korea's Financial Services Commission to acquire Tongyang Life and ABL Life for a total of 1.54 trillion won ($1.07 billion).
• The acquisitions are contingent on Woori implementing internal control enhancements, strengthening the insurers' capital bases, and reducing risk-weighted assets.
• The group must report semi-annual progress on these measures to the Financial Supervisory Service through the end of 2027, with the risk of forced divestment for non-compliance.
• Woori's move diversifies its portfolio, reducing reliance on banking income, which currently accounts for 90% of its revenue, and aligns with broader industry consolidation trends.
• Regulatory approval followed Woori's commitments to address governance issues, invest 100 billion won in internal controls, and raise its CET1 ratio to over 13% by 2027.