Chairman Lim Jong-ryong's M&A Strategy: A New Leap for Woori Financial Group

Chairman Lim Jong-ryong of Woori Financial Group is focusing on mergers and acquisitions (M&A) of non-bank subsidiaries to reduce the group's dependence on its banking sector
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Chairman Lim Jong-ryong of Woori Financial Group is focusing on mergers and acquisitions (M&A) of non-bank subsidiaries to reduce the group's dependence on its banking sector. Following the successful launch of Woori Investment & Securities, Lim is now looking to strengthen the group’s comprehensive financial portfolio through the acquisition of insurance companies. This article examines the current status of Woori’s acquisition of Tongyang Life and ABL Life, as well as future strategies.

Woori Financial Group's strategy to enhance its non-bank subsidiaries is progressing rapidly under the leadership of Chairman Lim Jong-ryong. Recently, the group achieved a significant milestone by obtaining approval from the Financial Services Commission to launch Woori Investment & Securities. This marks the group's re-entry into the securities business after a decade, with long-term plans to develop it into a leading investment bank.

The next phase of Woori Financial Group's strategy is the acquisition of insurance companies. Since his appointment in March last year, Chairman Lim has emphasized the expansion of the non-bank portfolio and has actively pursued the acquisition of insurance companies. Currently, Woori Financial Group is considering acquiring Tongyang Life and ABL Life to further strengthen its competitive edge.

The majority shareholder of Tongyang Life and ABL Life is China’s Dajia Insurance Group. Woori Financial is in the process of negotiating terms, including the price, having signed a non-binding memorandum of understanding with Dajia Insurance. If these acquisitions are successful, Woori Financial Group would immediately become the sixth-largest life insurer in terms of assets, following Samsung, Kyobo, Hanwha, Shinhan Life, and NH NongHyup Life.

Chairman Lim remains committed to not overpaying for these acquisitions, addressing market concerns about Woori Financial’s stock price. Woori Financial’s CFO Lee Sung-wook emphasized, “We will not overpay. Given market concerns about capital increases, we are not considering a rights offering.” He also noted that, for the time being, there are no plans to acquire additional insurance companies beyond Tongyang Life.

Under Chairman Lim Jong-ryong's leadership, Woori Financial Group aims to become a comprehensive financial group by strengthening its non-bank subsidiaries. The successful launch of Woori Investment & Securities and the potential acquisition of Tongyang Life and ABL Life will significantly enhance Woori Financial Group’s competitive position. Chairman Lim’s strategic direction and leadership are expected to continue driving the growth and success of Woori Financial Group in the future.