April 18, 2024

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[THE INVESTOR] Woori Financial Group’s asset management subsidiary is set to buy Smart Savings Bank, a Korean non-banking lender, which is likely to become the first acquisition after it was recently restructured to a holding company structure, according to industry sources on Jan. 23.

“(Woori Private Equity Asset Management) will submit documents for the Financial Supervisory Service approval at the latest by early next week,” the source told The Investor.

Woori Bank headquarters in Seoul, Korea

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The unit is wholly owned by Woori Financial Holdings and is a sister company of Woori Bank. It plans to buy an 82.57 percent stake in the lender along with private equity firm Smart Investment Partners. The shares are reportedly worth just under 70 billion won (US$62.11 million).

Smart Savings Bank, along wth Aju Capital -- which wholly owns Aju Savings Bank -- were cited among the handful of non-banking lenders that Woori Financial was considering acquiring.

Founded in 1972, Smart Savings Bank has a branch network across Seoul, Gyeonggi Province, Jeolla Province and Jeju Island. It posted a net profit of 13 billion won with 90.2 billion won revenue in 2017.

Its current major shareholders include Dayou Plus and Dayou A-Tech, which own 82.57 percent. They are both indirect subsidiaries of Dayou Holdings, at the apex of Dayou Group’s holding firm structure.

The midsized conglomerate which is expanding its home appliance business, has been looking to sell off its financial unit after acquiring Daewoo Electronics in March to streamline its business. Local financial authorities ruled in November that the group cannot remain the major stakeholder of Smart Savings Bank, citing its chairman Park Young-woo’s conviction in 2017 for illegal stock trading using insider information.

By Son Ji-hyoung (consnow@heraldcorp.com)