Seoul: Woori Financial Group Inc. has secured regulatory approval for the acquisition of two life insurance companies. This approval, granted on Friday by the Financial Services Commission (FSC), is contingent upon Woori Financial's commitment to implementing planned measures to enhance its internal control.
According to Yonhap News Agency, the FSC, South Korea's financial regulator, approved the acquisitions of Tongyang Life Insurance Co. and ABL Life Insurance Co. by Woori Financial for a total of 1.54 trillion won (US$1.07 billion). This approval is a significant step for the financial holding firm as it seeks to diversify its business portfolio beyond its core banking operations.
In August, Woori Financial entered agreements to acquire a 75.34 percent stake in Tongyang Life for 1.28 trillion won and to fully acquire ABL Life for 265 billion won. Tongyang Life stood as the country's sixth-largest life insurer, with assets totaling 33 trillion won in 2023, while ABL Life ranked ninth with assets amounting to 17 trillion won.
With this regulatory approval, Woori Financial is poised to reduce its heavy reliance on its banking business. Currently, approximately 90 percent of the group's income is derived from Woori Bank, its principal subsidiary.