Korea Financial Supervisory Service conducts strict regular inspection of Woori Financial Group

The Financial Supervisory Service of Korea will begin regular inspections of Woori Financial Holdings and Woori Bank early next month. The inspections will include investigations into the questionable loans made to relatives of former Chairman Son Tae-seong as well as the
It is expected that the committee will conduct a thorough investigation into the overall management situation, including the adequacy of capital related to Woori Financial's acquisition of an insurance company and its merger and acquisition (M&A).
According to South Korean financial circles and financial authorities on the 2nd, the Financial Supervisory Service announced on the afternoon of the same day that it would be conducting regular inspections of Woori Financial and Woori Bank.
The Financial Supervisory Service has sent out relevant advance notices. This is the first regular inspection by the Financial Supervisory Service of Woori Financial and Woori Bank in about three years since the end of 2021.
Initially, Woori Financial and Woori Bank were not included in this year's regular inspection by the Financial Supervisory Service.
The Financial Supervisory Service is currently also conducting regular inspections of KB Financial and Kookmin Bank.
The Financial Supervisory Service (FSS) is expected to conduct a high level of inspection of Woori Financial and Woori Bank this time around.
The Financial Supervisory Service plans to focus its investigation on not only the company's overall operations, but also its handling of loans and internal control system, including allegations of improper loans to Son's family members.
The Financial Supervisory Service said that Woori Bank had provided 61.6 billion won in loans to companies and borrowers connected to Son's family over the past four years, of which 35 billion won was in violation of normal standards and procedures.
The bank also plans to investigate the appropriateness of capital ratios related to the M&A of insurance companies that Woori Financial has been actively pursuing.
The financial institution held a board meeting on the 28th of last month and resolved to acquire Orient Life Insurance and ABL Life Insurance, and signed a share purchase agreement (SPA) with China's Duozi Insurance Group.
A source from the Korean financial industry said, "They will investigate whether the capital ratio can be maintained at an appropriate level even after the large-scale M&A.
Meanwhile, the Financial Supervisory Service is set to begin on-site investigations into Woori Financial Savings Bank, Woori Capital and Woori Card this week in connection with allegations of improper loans to Son's relatives.
The Financial Supervisory Service estimates that Woori Financial Savings Bank provided 700 million won in loans, Woori Capital provided 1.2 billion won, and Woori Card provided 200 million won.