Woori Financial Group is moving closer to becoming a comprehensive financial powerhouse by acquiring major stakes in Tongyang Life Insurance and ABL Life Insurance. During an August 28 board meeting, Woori finalized the purchase of a 75.34% stake in Tongyang Life for 1.28 trillion won (approximately $960.14 million) and a 100% stake in ABL Life for 265.4 billion won, bringing the total acquisition cost to 1.55 trillion won ($1.16 billion).
These acquisitions mark a significant step in Woori’s strategy to expand beyond banking into insurance and securities. Tongyang Life, the sixth-largest life insurer in South Korea, boasts total assets of 33 trillion won and a net profit of 300 billion won in 2023. ABL Life, ranked ninth, has assets of 17 trillion won and a net profit of 80 billion won, with strong asset management capabilities.
Woori secured exclusive negotiation rights in June after months of talks with China’s Dajia Insurance Group. Following due diligence, the stock purchase agreements were finalized, positioning Woori to integrate these insurers into its expanding portfolio. The acquisitions are expected to enhance cross-selling opportunities across Woori’s banking, securities, and insurance divisions.
However, regulatory approval remains a potential hurdle. Financial authorities may impose sanctions related to an improper loan tied to a relative of former Woori Chairman Sohn Tae-seung. Regulatory scrutiny could complicate the group’s plans, as the acquisition must clear corporate governance rules.
