▶주메뉴 바로가기

▶본문 바로가기

The Korea Herald
검색폼

THE INVESTOR
March 19, 2024

Finance

Woori Card to boost capital in microfinance subsidiary in Myanmar

  • PUBLISHED :July 19, 2018 - 14:59
  • UPDATED :July 19, 2018 - 14:59
  • 폰트작게
  • 폰트크게
  • facebook
  • sms
  • print

[THE INVESTOR] Woori Card, the credit card unit of Woori Financial Group, plans to recapitalize its subsidiary in Myanmar as it bets on high growth potential in one of the fastest growing Southeast Asian countries, industry sources said on July 19.

The board of directors of Woori Card will convene later this month to approve a capital increase of about 3 billion won (US$2.60 million) in its microfinance subsidiary TUTU Finance-WCI Myanmar. The capital increase is backed by a faster-than-expected growth of the local unit.

“A capital increase is necessary considering the speed of capital expenditure,” a company official said. 



Woori Card plans to expand its microfinance business network in the country where there is high demand and to branch out to rental, installment and leasing businesses, he said.

Woori Card acquired the nation’s second-largest city Mandalay-based Tutu in 2016 for 2.8 billion won.

Once closed under military dictatorship, Myanmar is now opening up its market to foreign investors. Other Korean companies such as BNK Capital and IBK Capital are also trying to boost their business in the country.

The country, with a population of 53.9 million, saw its gross domestic product grow by 6.4 percent in the 2017-2018 fiscal year ending on March 31.  

Woori Card recorded 349 million won net loss last year and now expects to narrow its deficit.

“The average loan per person in Myanmar doesn’t exceed 200,000 won and the default rate is low,” the official said. “The business will stabilize and turn around.”

By Park Ga-young (gypark@heraldcorp.com)

EDITOR'S PICKS