ANNUAL REPORT 2020
Woori Bank
Woori Card
Woori
Financial Capital
Woori
Investment Bank
Woori
Asset Trust
Woori Asset
Management
Woori
Savings Bank
Woori Credit
Information
Woori
Fund Service
Woori Private
Equity Asset
Management
Woori
GlobalAsset
Management
Woori Finance
Information
System
Woori Finance
Research Institute
THE FIRST CHOICE
IN FINANCE
Woori Financial Group, which has proclaimed ‘The First Choice in
Finance’ as its new slogan for the year 2021, is striving to be the most
trusted and admired corporate group in the financial sector.
The Group has been contributing to the efforts toward recovery from
the COVID-19 pandemic and its ensuing challenges since late 2019
by offering financial and non-financial assistance to various parts of
society, while maintaining one of the best levels of financial soundness
in the industry.
While managing performance in its primary businesses in the financial
sector, environmentally conscious efforts have also been put forth
to help create an eco-friendly society. Accordingly, the Group has
been spearheading the efforts to tackle climate change since the
proclamation of “2050 Carbon Neutral Financial Group” in 2020.
Woori Financial Group, which is faithfully fulfilling role and responsibility
as a reliable and competent financial group, is committed to growing
together with local communities and creating a better tomorrow with its
customers.
WOORI FINANCIAL GROUP
ANNUAL REPORT 2020
Web, Page
Video link
This report has been published as an interactive PDF and online
website, allowing readers to move quickly and easily to pages
in the report, and including shortcuts to related web pages and
video clips.
INTRO
004
006
008
010
SYNERGY GROWTH
DIGITAL INNOVATION
ESG REINFORCEMENT
RESPONSE TO COVID-19
WOORI OVERVIEW
012
014
016
018
020
023
027
028
Message from the CEO
Board of Directors
Financial Highlights
Group Vision & Strategy
Corporate Governance
2020 News Highlights
Business Portfolio
Synergy Promotion
030
Digital Innovation
032
Global Business
035
038
040
ESG Management
Risk Management
Social Responsibility
BUSINESS OPERATIONS
046
Woori Bank
072
Woori Card
074
076
Woori Financial Capital
Woori Investment Bank
078
Woori Asset Trust
080
082
084
086
087
089
091
092
Woori Asset Management
Woori Savings Bank
Woori Credit Information
Woori Fund Service
Woori Private Equity Asset Management
Woori Global Asset Management
Woori Finance Information System
Woori Finance Research Institute
FINANCIAL REVIEW
094
124
184
Management’s Discussion and Analysis
Separate Financial Statements
Consolidated Financial Statements
353
Global Network
WOORI FINANCIAL GROUP ANNUAL REPORT 2020
INTRO
WOORI OVERVIEW
BUSINESS OPERATIONS
FINANCIAL REVIEW
First Choice of Tomorrow
SYNERGY GROWTH
Woori Financial Group has been expanding the areas of synergy creation by adding subsidiaries since its establishment
in January 2019. In order to continually build its capacity as a financial group, it is encouraging collaboration among its
subsidiaries, promoting new business areas for synergy creation, offering advanced financial services and endeavoring
to maximize profit. The Synergy Council, in which the Group and all its thirteen subsidiaries participate, plans new
businesses and carries out joint marketing campaigns to maximize synergy and generating additional profits, in
addition to seeking measures to reduce costs.
more infomation
Business Portfolio p.027
Synergy Promotion p.028
Newly added in 2020
Woori
Savings
Bank
Video link
This video introducing
a new vision of
Woori Financial Group
004
Strengthen the
Woori
Financial
Capital
group's business portfolio
and expand its growth base
by adding non-banking subsidiaries
New Group Vision
INNOVATE TODAY,
CREATE TOMORROW
Business Portfolio
Added to direct subsidiaries in 2019
005
WOORI FINANCIAL GROUP ANNUAL REPORT 2020
INTRO
WOORI OVERVIEW
BUSINESS OPERATIONS
FINANCIAL REVIEW
First Choice in Digital Finance
DIGITAL INNOVATION
To achieve digital innovation as quickly as possible, Woori Financial Group has established a digital system
in relation to its vision, organization and tasks by setting a digital control tower and set forth 3 goals, 10
implementation tasks and 40 innovation tasks to realize the vision. Based on the digital transformation policy
established in 2020, Woori Financial Group will make a giant leap to become the No. 1 digital financial group in
Digital Slogan
Digital First,
Change Everything
the world in 2021.
more infomation
Digital Innovation p.030
Digital Banking(Woori Bank) p.053
Digital Vision
DIGITAL FOR
BETTER LIFE
Number of People Using Woori’s Digital Platform
(as of December 31, 2020)
5.03 million
* The sum of digital platform users of Woori WON Banking and
Corporate Woori WON Banking
006
007
WOORI FINANCIAL GROUP ANNUAL REPORT 2020
INTRO
WOORI OVERVIEW
BUSINESS OPERATIONS
FINANCIAL REVIEW
First Choice for ESG Management
ESG REINFORCEMENT
The recent trend seen across the world is the increasing emphasis placed on non-financial performance of
companies centering on sustainability, such as environmental protection activities, CSR management and
transparent management. Along with this, ESG management has become crucial, which is evidenced by the
fact that institutional investors are considering ESG when making investment decisions. In consideration of
this new paradigm, Woori Financial Group has established an ESG strategy to pursue sustainable growth and
set up an ESG management system to integrate the ESG framework into its corporate culture.
more infomation
ESG Management p.035
Nov. 2019
Jan. 2020
Dec. 2020
Jan. 2021
Joined the UNEP FI
Signed the PRB
Declared to end
coal finance
Declared support for
the CDP and TCFD
Woori Financial Group ESG Management Principles
Principle 1 : Alignment
Principle 2 : Impact & Target setting
Principle 3 : Customer
We will align our business strategy to be
We will continuously increase our positive
We will work responsibly with our clients
consistent with and contribute to individu-
impacts while reducing the negative im-
and our customers to encourage sus-
als' needs and society's goals, as expressed
pacts on, and managing the risks to, people
tainable practices and enable economic
in the Sustainable Development Goals, the
and environment resulting from our activi-
activities that create shared prosperity for
Paris Climate Agreement and relevant na-
ties, products and services. To this end, we
current and future generations.
tional and regional frameworks.
will set and publish targets where we can
have the most significant impacts.
Principle 4 : Stakeholders
Principle 5 : Governance & Culture
We will proactively and responsibly consult,
We will implement our commitment to
engage and partner with relevant stake-
these Principles through effective gover-
Principle 6 : Transparency & Accountability
We will periodically review our individual
and collective implementation of these
Principles and be transparent about and ac-
countable for positive and negative impacts
holders to achieve society's goals.
nance and a culture of responsible banking.
and our contribution to society's goals.
Woori Financial Group’s ESG Goals and Tasks
GOALS
Derive strategic tasks
for the Group
Execute mid- and long-term
strategic tasks
Complete the internalization of
sustainable finance within the Group
Support affiliates in building
their ESG capacity
Prepare a performance moni-
toring system for the Group
Sophisticate the ESG management
activities of the Group
2021 1H
2021 2H
2022~
TASKS
Select the mid- and long-term
strategic directions and tasks
for ESG management
Examine the
Compile and give feedback
performance of strategic tasks
by each affiliate
on the outcomes
of strategic tasks
Create the foundation for
internalization of the sustainable
finance classification system
Pursue internalization of
the sustainable finance
classification system
Comprehensively manage
the sustainable finance
performance of the Group
Prepare measures
for ESG capacity building
Reflect and evaluate the
Evaluate the ESG management
implementation of
ESG tasks as a KPI
level of the Group and derive
support measures
008
009
WOORI FINANCIAL GROUP ANNUAL REPORT 2020
INTRO
WOORI OVERVIEW
BUSINESS OPERATIONS
FINANCIAL REVIEW
First Choice for Society
RESPONSE TO COVID-19
The effects of a stagnant local economy and unprecedented challenges brought upon by COVID-19 are being felt
in every corner of our society. Recognizing the hardships faced by all, Woori Financial Group has been assisting
small- and medium-sized enterprises (SMEs) and small offices/home offices (SOHOs) financially and engaging
in a wide range of activities to share the burden with local communities, as a way to fulfill its corporate social
responsibility.
more infomation (www.woorifg.com)
Exemption of overdue fees
Support for vulnerable groups
Donations
Financial
Support
RESPONSE TO
COVID-19
Extension of maturity
date for borrowers
Change of repayment method
Emergency loans for living expenses
Fund-raising activities
Non-
Financial
Support
Relief supplies
Support for SOHOs and other small business owners
Rapid Response to COVID-19
Fulfillment of Corporate Social Responsibility
Woori Financial Group conducted a thorough analysis of the
Upon the outbreak of COVID-19, Woori Financial Group estab-
potential economic and social impacts of COVID-19, based
lished the Emergency Management Committee to conduct
on which the Emergency Management Committee was
objective analysis and ensure preparedness for the potential
launched to guide business management, while serving as a
economic impacts of what would later become a global health
control tower to ensure a systematic response to overcome
crisis. Based on the judgment that the novel coronavirus was
the crisis. The Emergency Management Committee is re-
not only a health threat but a threat to people’s livelihoods, the
vamping its system to add momentum to the national efforts,
Group prepared support measures in both financial and non-fi-
Financial Support
SMEs and SOHOs
Non-Financial Support
SMEs and SOHOs
• Woori Bank: Operation of Woori SOHO Support Center at five locations
• Woori Financial Group: Carried out the Good Consumption Campaign
and 5.65 million cases of providing financial consulting to SOHOs
(KRW 10 billion) to revitalize the local economy
• Woori Card: Card loan interest rate cuts of up to 50% and payment
reductions amounting to KRW 2.5 billion through a change of payment
method
• Woori Card: Held a “guerilla market” to assist floriculture farms facing finan-
cial hardships due to plummeting sales, Held the Winicon Bazaar to support
innovative enterprises faced with difficulties in developing sales channels
in addition to pursuing crisis response at the Group level and
nancial areas in a timely manner and spearheaded various
• Woori Card: 6-month payment deferrals for credit sales, financing and
• Woori Investment Bank: Offered discounts on rent for enterprises hit by
supporting its customers. Also, in light of the dramatic chang-
efforts to overcome the national crisis, thereby gaining recogni-
capital sale accounts amounting to a total of KRW 9 billion
COVID-19
es in the global financial markets, efforts are being made to
tion for fulfilling its corporate social responsibility.
examine investments in domestic and foreign funds and to
carry out an FX contingency plan, if necessary. Woori Finan-
cial Group is dedicating every effort to achieve its business
objectives amid the global crisis and, at the same time, coop-
erating with the government in its policy implementation and
making multifaceted efforts to support its customers.
010
• Woori Investment Bank: Extension of the maturity date for loans taken
out by enterprises affected by COVID-19 (loans amounting to KRW 5
billion)
• Woori Asset Trust: Donated 2,500 face masks to the Soraepogu Mer-
chants’ Association
• Woori Financial Capital: Payment deferrals amounting to KRW 122.5
Community
billion (based on the outstanding principal balance)
Retail Customers
• Woori Financial Group: Provided online educational support to 2,000 un-
derprivileged children (laptops, assistant teachers, etc.)
• Woori Financial Group: Donated infection prevention kits (masks, hand
• Woori Bank: COVID-19 Household Loan Pre-Workout Program offering
sanitizers, etc.) to welfare facilities for children and seniors
payment deferrals
• Woori Card: Emergency loans for living expenses amounting to KRW
195 million (up to KRW 3 million per applicant, an interest rate discount
of up to 50%)
• Woori Investment Bank: Exemption of overdue fees for digital finance
customers (386,970 cases, KRW 190 million in total)
• Woori Financial Capital: Donated to help families hit by COVID-19 and
families at risk in the regions designated as Special Disaster Zone
• Woori Bank: Provided Woori Town Hope Box consisting of food and per-
sonal hygiene supplies to 1,800 marginalized seniors in the Daegu area
• Woori Card: Provided food and other relief supplies to low-income
households in the Daegu and Gyeongbuk areas.
• Woori Investment Bank: Raised funds on Wibee Cloud, a crowdfunding
platform, to be donated toward COVID-19 restoration efforts
• Woori Credit Information: Donated 10,000 face masks and 120 hand
sanitizers to Jung-gu Office in Seoul
• Woori Asset Trust: Lowered administrative agency fees, etc. for 9 clients
that amounted to KRW 635 million in total
011
Message from the CEO
Innovate Today,
Create Tomorrow
On behalf of everyone at Woori Financial Group, allow me to extend my sincerest
gratitude to all shareholders and customers for their unwavering support.
In 2020, we launched an emergency management committee almost immediately following
the outbreak of COVID-19 in the face of confusion and crisis in order to overcome the ensuing
crises with prudence and foresight, while prioritizing the safety of customers and our staffs.
We also made meaningful achievements that bolstered Woori Financial Group’s status and
prestige despite the challenges brought upon by the pandemic.
In the first half of the year, we obtained approval of the internal ratings-based approach,
through which the capital adequacy ratio was raised, based on which we welcomed Woori
Financial Capital and Woori Savings Bank as new members of our Group near the end of last
year. Regrettably, however, there were certain aspects of our financial performance that fell
short of the expectations of our shareholders.
In recognition of this, we wish to designate ‘Strengthening the Group’s Competitiveness
Based on Innovation and Efficiency’ as the management objective for the year 2021, which
marks the third anniversary of Woori Financial Group, and revolutionize all areas across the
Group including financial performance.
First, we will strengthen the competitiveness of Woori bank and other key subsidiaries in
their core business areas and, at the same time, seek ways to expand our non-banking port-
folio to pave the foundation for growth.
In addition, with the belief that our very survival depends on ensuring successful digital trans-
formation, every member of our organization will dedicate efforts toward digital innovation
for Woori Financial Group to emerge as the No.1 financial group in the digital age and spear-
head innovation, even among the BigTech companies, through the MyData Project.
In 2021, ESG management will also be a crucial strategy for Woori Financial Group.
At the beginning of this year, we rennewed our value system with our first and foremost val-
ue summed up as ‘Woori thinks of its customers and the community first.’
With 2021 as the first year of ESG management, we will integrate the ESG agendas, includ-
ing climate change response, into our management practices, and contribute to the creation
of sustainable society by taking an active part in the implementation of the 2050 Carbon
Neutral and Korean New Deal policies, as a leading financial group in Korea.
Dear valued shareholders and customers,
At Woori Financial Group, we declared a new vision of ‘Innovate Today, Create Tomorrow’ in
2021, marking the third anniversary of the Group.
All the executives and employees of the Group will be committed to drive forth innovation
each day and return the best value possible under the slogan, ‘The First Choice in Finance.’
I ask that you look forward to the future of Woori Financial Group, as we prepare to make
giant strides.
I wish all shareholders and customers health and happiness.
Thank you.
Son, Tae Seung
Chairman & CEO, Woori Financial Group
012
013
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Board of Directors
Son, Tae Seung
Lee, Won Duk
Standing director (Chairman & CEO)
Standing director (Senior Deputy President)
• (Current) Chairman & CEO, Woori Financial Group
• (Current) Senior Deputy President, Woori Financial Group
• President & CEO, Woori Bank
• Head. Global Business Unit, Woori Bank
• LLM, Seoul National University
• LLB, Sungkyunkwan University
• Deputy President, Strategy Planning Unit, Woori Financial Group
• Executive Vice President, Management and Finance Planning Group,
Woori Bank
• Managing Director, Future Strategy Division, Woori Bank
• M.A. in Economics, Seoul National University
• B.A. in Agricultural Economics, Seoul National University
Chung, Chan Hyoung
Outside director
• CEO, POSCO Capital
• Vice Chairman, Korea Investment Management
• CEO and President, Korea Investment Management
• MBA in Finance, Korea University Business School
• B.A. in Business Administration, Korea University
Dennis Chan
Outside director
• Vice Chairman, Fubon Bank (China)
• CEO, Fubon Bank (China)
• Senior Vice President, Strategic Planning, Fubon Financial Holdings
• M.A. in Business Administration, Georgetown University
• B.A. in Business Administration, Taipei National University
Tian, Zhiping
Outside director
Chang, Dong Woo
Outside director
• (Current) Vice President, Beijing FUPU DAOHE InvestmentManagement Ltd.
• (Current) CEO, IMM Investment Corp.
• Vice President, ICBC Middle East Ltd. & ICBC Londong Ltd.
• Representative Partner, IMM Investment Corp.
• Director & Vice President, Industrial and Commercial Bank of China,
• ABAS Leader-AKT, Samil Accounting Corp.
Branch of Sichuan Province
• IMBA, University of Hong Kong
• MBA, Southwestern University of Finance and Economics
• B.A. in Government Economics Management, Shanxi University of Finance and Economics
• Audit Department, Younghwa Accounting Corp.
• LLB, Hanyang University
Ro, Sung Tae
Outside director
Park, Sang Yong
Outside director
• (Current) Chairman, Samsung Dream Scholarship Foundation
• (Current) Auditor, Yonsei Foundation
• President, Hanwha Life Economic Research Institute
• President, Korea Economic Research Institute
• M.A. and Ph.D. in Economics, Harvard University
• B.A. in Economics, Seoul National University
• (Current) Professor Emeritus, Yonsei University
• Civilian Chair, Public Fund Oversight Committee
• Dean, School of Business and Graduate School of Business, Yonsei University
• M.A. and Ph.D. in Business Administration, New York University
• B.A. in Business Administration, Yonsei University
014
Kim, Hong Tae
Non-standing director
• (Current) General Manager, Department of Planning and Coordination,
KDIC (Korea Deposit Insurance Corporation)
• General Manager, Department of Risk Management, KDIC
• Head, Office of Creative Management, KDIC
• Deputy General Manager, Department of HR and Administration, KDIC
• Hana Bank
• B.A. in International Economics, Seoul National University
015
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Financial Highlights
Net Income
(Unit: KRW in billions)
Interest Income
(Unit: KRW in billions)
Cost-to-Income Ratio
(Unit: %)
Credit Cost Ratio
(Unit: %)
NPL Ratio
(Unit: %)
Bank
Group
Bank
Group
Bank
Group
Bank
Group
Bank
Group
2,033
1,512
1,307
1,699*
5,221
5,651
5,999
49.9%
50.8%
52.0%
55.0%
0.34%
0.28%
0.85%
0.13%
0.15%
0.54%
0.45%
0.42%
0.16%*
(Excl. one off items)
2017
2018
2019
2020
2017
2018
2019
2020
2017
2018
2019
2020
2017
2018
2019
2020
2017
2018
2019
2020
* Excluding major FY20 one off items (for illustration purpose)
- Pre-emptive provisioning of KRW 323 billion related to COVID-19 and KRW 218 billion related to WM products
* Consolidated basis
* Consolidated basis
* Cost to Income Ratio = SG&A Expense / (Interest Income + Non Interest
Income), Consolidated basis Excluding ERP Expense : 179bn(FY16),
304bn(FY17 ), 225bn(FY18 ), 156bn(FY19), 202bn(FY20)
* Excluding major FY20 one-off items (for illustration purpose)
- Pre emptive provisioning of W323bn related to COVID-19
Net Operating Revenue
(Unit: KRW in billions)
NIM & Core Deposit
(Unit: %. Unit: KRW in trillions)
Loan Portfolio
(Unit: KRW in trillions)
Assets
(Unit: KRW in trillions)
Liabilities
(Unit: KRW in trillions)
Bank
Group
6,473
6,713
6,821
2017
2018
2019
2020
*Consolidated basis (Excluding 4 newly acquired subsidiaries in FY19, 20)
● NIM ■ Core Deposit
■ Large Corp. ■ SME ■ Retail ■ Public & Others
■ Loans in Won ■ Total Assets (Including AUM)
■ Deposit ■ Total Liabilities
Bank
Bank
Group
264
1.47%
1.52%
71
75
1.33%
103
222
36.0
76.3
234
243
36.5
81.3
33.3
87.5
106.6
113.5
119.8
35.7
95.8
130.4
3.2
2.7
2.4
2.5
Bank
Group
Bank
Group
525.9
473.8
356
389
200
211
221.7
249.3
318
336
296
235
249
265
372.4
291.4
2017
2018
2019
2020
2017
2018
2019
2020
2017
2018
2019
2020
2017
2018
2019
2020
Fees and Commission
(Unit: KRW in billions)
Profitability (ROA & ROE)
(Unit: %)
Prime Asset Ratio
(Unit: %, KRW in trillions)
Capital Adequacy
(Unit: %)
Bank
Group
Bank
Group
Bank
Bank
Group
● ROA ● ROE
● Prime Asset Ratio ■ Prime Asset
● BIS Ratio ● Tier1 Ratio ● CET1 Ratio
1,070
1,070
1,014
7.42%
0.49%
9.69%
0.63%
9.29%
0.52%
7.62%*
5.87%
0.50%*
0.34%
84.4%
81.3%
71.9
77.8
87.5%
93.9
15.4%
13.2%
11.0%
17.3%
15.0%
13.1%
11.9%
9.9%
8.4%
13.8%
11.8%
10.0%
2017
2018
2019
2020
2017
2018
2019
2020
2017
2018
2019
2020
2017
2018
2019
2020
* Consolidated basis
016
* Excluding major FY20 one off items (for illustration purpose)
- Pre emptive provisioning of W323bn related to COVID and 218bn related to WM products
* Consolidated basis
017
82.185.2%821.44%5,8941,8726,9401,103INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Group Vision & Strategy
In consideration of the changes in the internal and external envi-
Based on the judgment that, for vulnerable groups and small busi-
2021 Plans
Fifth, ‘Strengthen Risk Management and Internal Control.’
ronments, Woori Financial Group has defined new values based on
ness owners, the novel coronavirus was not only a health threat but a
which it will be envisioning its future 50 and 100 years from now.
threat to their livelihoods, the Group made every effort to offer finan-
2020 Performance
cial and non-financial support in a timely manner and gained recogni-
tion for fulfilling its corporate social responsibility. With the approval
of the internal ratings-based approach, the capital adequacy ratio was
Woori Financial Group has set forth a management goal to
While market uncertainty has been swelling over the past several
‘Strengthen the Group’s Competitiveness Based on Innovation and
years, but in 2020 has been particularly difficult to predict. With this
Efficiency’ for the year 2021, with the aim of laying the groundwork
in mind, potential risks will be thoroughly monitored in advance, and
for revolutionary changes based on the following six main manage-
the invested assets of the Group will be carefully examined in depth.
In 2020, Woori Financial Group formed an emergency management
raised and a powerful engine for the roadmap to growth was created.
committee in early on in the face of an unprecedented global crisis
Based on this, it expanded its network of domestic and overseas
brought upon by COVID-19 to systematically deal with the ensuing
subsidiaries and incorporated a capital lending company and savings
First, ‘Broaden the Foundation for Growth.’
ment strategies:
Also, all the subsidiaries of the Group will be equipped with impecca-
ble internal control systems to comply with the amendments to the
Consumer Protection Act, which will come into effect in 2021.
challenges, with the safety of customers and staff as its No.1 priority.
bank into the Group in the latter half of 2020, which ultimately helped
reinvigorate business operations at home and abroad in 2021.
Compared to the competition, Woori Financial Group has more busi-
ness portfolios to develop, which signifies its comparatively higher
growth potential. By expanding business portfolios in a diversified
Sixth, ‘Pursue Global Business Operations and Assume a Lead-
ership Role.’
manner, the Group plans to continually strengthen the driving force
Woori Financial Group has been expanding its global network in full
VISION
behind its growth.
Second, ‘Emerge as the No.1 leader in digital technology.’
swing since years ago, with the belief that a company’s competitive-
ness will be determined in the global market in the near future. The
Group has achieved quantitative growth to a level enabling stable
local operations in the Southeast Asian market, and it will seek to
Concentrating its resources and expertise as a market leader in innovating for
tomorrow to deliver better value to customers
SLOGAN
The First Choice in Finance
In the past, the key elements of the financial industry were people
implement innovative strategies to broaden channels and boost prof-
and paper records, but with digital technology taking the place of
itability using digital technology in other overseas markets by turning
the latter, it has become one of the most high-tech industries today.
the COVID-19 crisis into an opportunity.
Based on the fact that digital platforms are now the No.1 customer
touchpoints of financial firms, Woori Financial Group will innovate its
platforms through digital transformation using cutting-edge technol-
ogy such as AI and big data and emerge as the No.1 financial group
in digital technology.
As Woori Financial Group commemorates the third anniversary of its
establishment in 2021, Woori Financial Holdings and all the affiliates
will strive for innovation with the vision of ‘Innovate Today, Create
Tomorrow,’ with the 30,000-something members of the organization
moving forward in unison.
Third, ‘Enhance Management Efficiency.’
Concentrating its resources and expertise as a market leader in innovating for tomorrow to deliver better value to customers
As the Group celebrates the third anniversary of its establishment
CORE VALUES
CUSTOMERS
TRUST
EXPERTISE
INNOVATION
Woori thinks of
its customers and the
community first
Woori builds
customer trust based
on principles
Woori
has the expertise
to lead the market
Woori
shapes the future
through innovation
this year, it will boost synergy among major business areas including
CIB and asset management and carry out a thorough analysis of the
human and material resources of the holding company and all the
affiliates for optimization purposes.
Fourth, ‘Improve Brand and ESG Management.’
In response to the increasing implementation of ESG frameworks,
Woori Financial Group will spearhead the efforts to create envi-
ronmental and social value in finance in line with the 2050 Carbon
Neutral Strategy and the Korean New Deal policies and contribute to
creating a sustainable society.
018
019
INNOVATE TODAY, CREATE TOMORROW INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Corporate Governance
Governance Policy of Woori Financial Group
Woori Financial Group, which “innovates today create tomorrow,” is
Outside directors cannot serve longer than six years at Woori Finan-
Outside directors from diverse backgrounds, such as a university
Woori Financial Group will include outside directors who are from
cial Group or nine years at two or more subsidiaries of the Group.
professor, researcher and CEO of a financial firm, play complementa-
diverse backgrounds and have different experiences in its BOD to
committed to achieving sustainable growth to protect the interests
To reinforce the independence of outside directors, related guidelines
of shareholders, financial consumers and other stakeholders and
have been prepared, and all the criteria set forth must be satisfied for
maintaining a stable, efficient and transparent governance structure.
outside directors to be deemed independent. The guidelines for inde-
To this end, the principles of governance applied by the Group are as
pendence are as follows:
ry roles by offering different professional expertise. In consideration
make rational and balanced decisions and proactively respond to the
of the nature of a financial holding company, efforts are made to
market and financial environment, while striving for efficient opera-
appoint outside directors with comprehensive knowledge across vari-
tion of the BOD.
ous fields. In fact, the outside directors of Woori Financial Group have
expertise in two or more areas. Also, outside directors of different na-
tionalities have been appointed to run the company with a more glob-
For disclosures, visit http://www.woorifg.com
follows:
First, a stable and sound governance structure is maintained through
checks and balances of members;
• The outside director has not worked as an executive, employee, or
al view, considering the fact that Woori Financial Group’s net income
non-standing director at the Group or its affiliate within the past five
from its overseas operations accounts for more than 10% of the total
Second, an efficient governance structure is established based on
years;
the members’ expertise and diverse perspectives;
• An immediate family member of the outside director has not been
net income. (four Korean outside directors and one outside director
from China and Taiwan each, as of the end of March 2021)
Third, a transparent governance structure is maintained by disclosing
an executive of the Group or its affiliate within the past three years;
In addition, the following standards to improve diversity and exper-
various operating standards, procedures and results.
• The outside director is not an advisor or consultant to the Group or
to the executive management of the Group;
Ensuring the Independence of the BOD
• The outside director is not in an employee-employer relationship
tise have been established in order for the BOD to make important
decisions in consideration of the interests of all stakeholders, includ-
ing shareholders and financial consumers:
To ensure stable and sound operations of the Board of Directors
with an external agency that audits the Group;
(BOD) and committees, Woori Financial Group complies with the Act
• The outside director is not an executive or employee of a corpora-
Respecting Diversity
on Corporate Governance of Financial Companies, the key provisions
tion with which the Group signed an advisory agreement or techni-
• Gender: Female candidates accounting for at least 20% of the out-
of which have been reflected in the internal regulations. The Group is
cal partnership agreement;
side director candidate pool to improve the gender diversity of the
also dedicated to ensuring independence for the BOD to fulfill its role
of supervising the executive management in recognition of its impor-
tance. In accordance with Article 35 of the Articles of Association,
outside directors make up the majority of the BOD and in accordance
with Article 44, the Chairperson of the Board is appointed from
among outside directors. Since its establishment in 2019, Woori Fi-
nancial Group’s BOD has been chaired by an outside director. (Outside
directors accounting for 67% of the Board members, as of the end of
March 2021)
According to the internal regulations on corporate governance, the
Officer Candidate Recommendation Committee, Audit Committee,
• The outside director is not an executive or employee of a corpo-
BOD
ration with which the Group signed a transaction agreement, the
• Nationality: Discover candidates from diverse backgrounds in terms
value of which accounts for more than 10% of the total sales of the
of culture, living environment and lifestyle to create a governance
Group in recent business years;
structure that meets global standards
• The outside director is not an executive or employee of a corpora-
• Experience: Avoid concentration of outside directors from similar
tion whose transactions with the Group in the past three business
backgrounds and regions, while taking into consideration the nature
years account for more than 10% of the total assets or operating
of the financial sector
income of the corporation;
• Other factors: Promote diversity from the perspective of inclusion,
• The outside director is deemed to have no interests in any of the
while eliminating discrimination on the basis of race, religion, eth-
matters decided by the BOD.
nicity, etc.
Risk Management Committee, Compensation Committee and Inter-
For disclosures, visit http://www.woorifg.com
Faithful Operation of the BOD
It is possible to run the BOD efficiently only if the outside directors
with expertise in their respective fields regularly attend the Board and
committee meetings. Expertise and diligence are key factors in the ap-
pointment criteria for outside directors and are also considered when
evaluating the activities of outside directors. In 2020, the BOD was
convened fourteen times, with an average attendance rate of 98%.
For disclosures, visit http://www.woorifg.com
Transparent Governance
The operating standards, procedures and results related to gover-
nance are fully disclosed for transparency.
The matters disclosed as prescribed in the internal regulations con-
cerning governance in order to achieve transparency and objectivity
are as follows:
First, an annual report on the operation of the BOD, governance and
remuneration system is published on the website of Woori Financial
Group and the Korea Federation of Banks 20 days before the ordi-
nary meeting of shareholders each year;
Second, the Articles of Association, internal regulations on gover-
nance, regulations for the committees within the BOD, and other
regulations concerning governance are available on the website of
nal Control Management Committee are chaired by outside directors,
and outside directors make up the majority of these committees. It is
also stipulated that outside directors must form two-thirds of the Of-
ficer Candidate Recommendation Committee, which is responsible
Diversity and Expertise of the BOD
for recommending candidates for the positions of President & CEO,
outside directors and auditors, and the Audit Committee, supervising
business management. As of the end of March 2021, the two Com-
mittees consist entirely of outside directors.
When it comes to the procedure and standards for appointing out-
side directors, Woori Financial Group does not allow any discrimina-
tion on the basis of sex, race, ethnicity, country of birth or nationality,
age, experience, cultural background, religion, etc. To ensure efficient
operation of the Board, outside directors are selected from a diverse
group of professionals. (One economic expert, three financial ex-
perts, one business management expert and one accounting expert,
as of the end of March 2021)
Strengthening Expertise
• Essential areas of expertise: Finance, economics, business man-
Woori Financial Group for stakeholders to better understand the gov-
agement, law and accounting
ernance structure and operating system of the Group;
• Specific areas of expertise: Areas concerned in the sustainable
Third, the key matters pertaining to governance, such as the appoint-
growth of the Group, including digital, ESG, global, risk manage-
ment and dismissal of executives and nominations of outside direc-
ment, consumer protection, etc.
tor candidates, are published on website of Woori Financial Group for
stakeholders to obtain the information at any time.
For disclosures, visit http://www.woorifg.com
020
021
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Composition of the BOD and Its Committees
The BOD of Woori Financial Group, as of the end of March 2021, is com-
management strategies and to reinforce its ESG system. The key roles
prised of nine members (six outside directors, one non-standing director
of the ESG Management Committee are setting forth ESG management
and two standing directors). Within the BOD, there are seven commit-
policies and the direction of related strategies and making decisions
01
tees. Woori Financial Group has launched the ESG Management Com-
concerning ESG management.
mittee in March 2021 to firmly establish a system for executing its ESG
* Please refer to the attachment for details on BOD composition.
Committee
Members
Key Roles
Chung, Chan Hyoung (Chairman)
Ro, Sung Tae
Chang, Dong Woo
Outside director
Outside director
Outside director
• Supervising the work performed by directors and the executive
management
• Selecting and requesting the dismissal of independent auditors
Addition of Woori
Financial
Capital and
Woori Savings Bank
into the Group
Outside director
Outside director
Outside director
Non-standing director
Outside director
Outside director
Outside director
Outside director
Outside director
Outside director
Non-standing director
Outside director
Outside director
Outside director
Outside director
Outside director
Outside director
Standing director
Outside director
Outside director
Outside director
Outside director
Outside director
Outside director
Outside director
Non-standing director
Standing director
Standing director
• Establishing basic policies and strategies for risk management
• Determining the level of tolerable risk
• Approving the risk capital limit and loss limit
• Establishing and amending risk management standards
• Evaluating the design and operation of the performance compensation
system
• Independently establishing and implementing compensation policies
• Determining recipients of performance compensation in the management
• Evaluating the performance of executives and providing compensation
• Filing and disclosing annual reports and reporting on the operation of the
performance-based compensation system
• Recommending candidates for the positions of Chairman & CEO, outside
directors and members of the Audit Committee
• Recommending candidates for the position of CEO for the subsidiaries
• Establishing an internal control system and the operating standards
• Checking the operation of the Group’s internal control system
Audit
Committee
Risk
Management
Committee
Compensation
Committee
Officer Candidate
Recommendation
Committee
Group CEO
Candidate
Recommendation
Committee
Internal Control
Management
Committee
ESG
Management
Committee
022
Park, Sang Yong (Chairman)
Dennis Chan
Tian, Zhiping
Kim, Hong Tae
Chung, Chan Hyoung (Chairman)
Ro, Sung Tae
Park, Sang Yong
Dennis Chan
Tian, Zhiping
Chang, Dong Woo
Kim, Hong Tae
Chang, Dong Woo (Chairman)
Ro, Sung Tae
Park, Sang Yong
Chung, Chan Hyoung
Dennis Chan
Tian, Zhiping
Son, Tae Seung (Chairman)
Ro, Sung Tae
Park, Sang Yong
Chung, Chan Hyoung
Dennis Chan
Tian, Zhiping
Chang, Dong Woo
Park, Sang Yong (Chairman)
Kim, Hong Tae
Son, Tae Seung
Lee, Won Duk
Ro, Sung Tae (Chairman)
Park, Sang Yong
Chung, Chan Hyoung
Dennis Chan
Tian, Zhiping
Chang, Dong Woo
Kim, Hong Tae
Son, Tae Seung
Lee, Won Duk
2020 News Highlights
Woori Financial Group signed a Stock Purchase Agreement (SPA) to acquire Aju Capital (incl. Aju
Savings Bank) on October 26, 2020 and added Aju Capital and Aju Savings Bank as a subsidiary
and a sub-subsidiary, respectively, on December 2020. On January 13, 2021, the companies were
renamed as Woori Financial Capital and Woori Savings Bank, respectively, with the latter added as
a subsidiary on March 12. Accordingly, Woori Financial Group now has thirteen subsidiaries and
gained two companies specializing in consumer financing at the same time. Woori Financial Cap-
ital, with a competitive advantage in the car financing business, recorded KRW 7.8 trillion in total
assets, KRW 96.7 billion in net income and 12.4% in ROE in 2020. The incorporation into Woori Fi-
nancial Group helped the company gain stability in the capital-raising process, while lowering relat-
ed interest rates, and it is expected to grow at an accelerated rate through cooperation with other
affiliates, including Woori Bank. Woori Savings Bank, generating more than KRW 10.0 billion in net
income annually, is also expected to contribute to boosting income for the Group. Woori Financial
Capital and Woori Savings Bank will improve convenience in financing for customers by providing
loans to SMEs and vulnerable groups, together with Woori Bank and other affiliates, while playing
a pivotal role in consumer financing for the Group. By creating synergy with existing subsidiaries,
they will bolster the competitiveness and value of Woori Financial Group.
02
The Beginning of the Digital Tower Era: Declaration of the Digital Vision and
Launch of the Digital Innovation Committee
Woori Financial Group has begun pursuing digital innovation in full swing, with the name of the office building, Woori Financial Namsan Tower,
changed to Woori Financial Digital Tower, and the Digital and IT Department of Woori Financial Holdings and the Digital Development Unit of
Woori FIS moving into the building. Woori Financial Digital Tower has become the undisputed digital control tower of the Group, as the home
of not only the Digital Financial Group of Woori Bank but now the digital departments of various affiliates as well. A work environment opti-
mized for digital collaborations has been created to produce synergy within the
Group using digital technology. Woori FIS, a subsidiary specializing in IT, has
some 240 developers working in the same space, allowing subsidiaries to co-
plan digital development projects and reducing the time it takes to take action
based on the plan. The new digital vision of Woori Financial Group has been
declared as ‘Digital for Better Life,’ signifying the Group’s intent to concentrate
all its capabilities and resources in digital transformation. Meanwhile, the new
management slogan has been announced as ‘Digital First, Change Everything.’
All members of the BOD
• Matters concerning the establishment of ESG management policies
To strive for digital innovation, Woori Financial Group has launched the Digital
and the direction of strategies
• Matters concerning important decisions related to ESG management
Innovation Committee, thereby securing top-down leadership, and involved the
Blue Team, comprised of young and innovative members of the organization,
in the committee to create a bottom-up innovation system to better deal with
the rapidly changing digital trends.
Digital Innovation Forum with Blue Team
023
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 03
Woori Bank Named Global Bank of
the Year 2020 by The Banker
Woori Bank was honored as the Global Bank of the Year 2020 by The Banker, a global
financial magazine, as the first among Korean banks. It was also selected as the Bank of
the Year in Asia and the Bank of the Year in Korea, taking home three prestigious awards.
The Banker is a monthly publication for the banking and finance industry operating under
The Financial Times headquartered in the UK. They create of a list of best banks at the
global level as well as by region and country based on a rigorous screening process. It has
been reported that Woori Bank received favorable reviews for having provided timely fi-
nancial support in response to COVID-19, engaging in various social contribution activities
and pursuing digital transformation through partnerships with other industries to prepare
for the post-COVID-19 era. Woori Bank was thus honored with the title of Global Bank of
the Year partly in recognition of its COVID-19 response. It is also worth noting that the
bank was chosen as the Bank of the Year in Korea for three consecutive years from 2016
to 2018 and as the Bank of the Year in Asia in 2017, but this was the first time for Woori
Bank to be named the Global Bank of the Year among Korean banks.
04 Woori Bank, the First in the Financial
Sector to Launch an Electronic Document
System at All Branches
On March 9, 2020, Woori Bank applied the electronic document
system (Phase II) to document processing at all of its branches
across the country, thereby eliminating the need for paper doc-
uments. The system, which was applied only to the depository
and household loan services in the first phase, began to be
used for all other operations including corporate loan and for-
eign exchange services. Instead of filling out paper documents,
customers are now requested to use the tablet PC provided at
each counter, and the screen and content of the document are
shared on the staff’s monitor for processing purposes. This is
the first time a financial institution in Korea has digitized all doc-
uments for customers. From the bank’s perspective, digitizing
paper documents enhances work efficiency and lowers admin-
istrative costs. By applying the electronic document system
across all business processes, it will be possible to save about
20 minutes when closing the accounts at the end of the day.
Meanwhile, using electronic documents for deposits and loans
will help cut related costs. From the customer perspective, it
eliminates the need to fill out redundant or unnecessary forms
and lowers the risk of incomplete sales in which the customer is
not provided a full explanation of a financial instrument. Prior to
the application, Woori Bank had repeatedly tested the system to
prevent inconveniences for customers. Once the staff and cus-
tomers get used to the electronic document system, banking
services will become faster and more convenient for both sides.
024
05
The Quintessential
Card Surpasses the
8 Million Mark
in the Shortest Time
The Quintessential Card series launched by Woori Card surpassed the 8 mil-
lion mark, as of November 24, 2020. The series has set the record of achiev-
ing this feat in the shortest time in the industry in just 2 years and 8 months
after its launch, and this is equivalent to the opening of at least 250,000 new
accounts each month (8.27 million accounts, as of the end of December
2020). The secret to the popularity of the Quintessential Card series is said to
be the benefits experienced by customers, with customized services provid-
ed in reflection of the rapidly changing consumption patterns, and the trendy
design of the card plate that has led to high customer satisfaction. Woori
Card launched the series with the Quintessential Card POINT in April 2018,
followed by 24 credit card products and 10 check card products. Recently,
the Quintessential Card UNTACT AIR, exclusively available on mobile devices,
was launched in line with the contactless consumption trend. Woori Card
has bolstered its brand power with the success of the Quintessential Card
series, dubbed as a “sellable product,” which is highly sought-after by con-
sumers on various channels including its branch locations. At the same time,
it has boosted sales of other financial products, including Woori Card Minus
Loan and car loans, thereby contributing to an increase in revenue.
06 Woori Investment Bank Successfully
Increases Capital by KRW 100 Billion
07
Woori Asset Trust Creating Synergy
by Entering the REITs Market
Woori Asset Trust obtained the preliminary license to operate as the
Real Estate Investment Trusts (REITs) Asset Management Company
(AMC) in December 2020 and is expected to obtain the official license
in the first half of 2021. The REITs refers to an indirect real estate in-
vestment product in which funds collected from multiple investors are
invested in prime real estate properties to generate income, which is in
In November 2020, Woori Investment Bank completed paid-in capital
turn used to pay dividends to the investors. The REITs AMC, therefore,
increase of KRW 100 billion in an effort to pursue sustainable growth
is a company that establishes REITs and entrusted with asset man-
and business expansion. As the one and merchant bank in Korea,
agement from the REITs.
Woori Investment Bank successfully obtained subscriptions primarily
from existing shareholders who subscribed to 91.35% of the 200 mil-
lion new stocks issued. With the stocks listed on the stock exchange,
it paved the foundation for increases in loans and investments,
through which it will seek to improve profitability and boost the value
of the company through IR. With the recent paid-in capital increase
creating a ripe environment for business expansion, Woori Investment
Bank is poised to achieve quantitative growth at an accelerated rate.
As of 2020 3Q, the company has recorded KRW 418 billion in total
capital and achieved about a 24% increase through the paid-in cap-
ital increase, and this is expected to drive forth growth. While Woori
Investment Bank is not a securities firm, it is capable of engaging in
related businesses concerning fixed-income investments, commercial
papers, privately placed bonds and short-term bonds, which is why it
will be able to create synergy with Woori Bank. Woori Investment Bank
generated KRW 62.2 billion in net income in 2020, a 13% YoY increase,
and it is diversifying its asset management portfolio to include not only
short-term credit but also mid- and long-term loans and investments
in marketable securities.
The REITs market in Korea has grown from KRW 6.9 trillion AUM in
2009 to KRW 61.4 trillion in 2020, which is an 8.8-fold increase over
eleven years, and it is fast-becoming an attractive investment area.
Once Woori Asset Trust is licensed as the REITs AMC, it will be able
to produce various synergistic effects with the affiliates of Woori Fi-
nancial Holdings. Of particular note, it will be possible to diversify the
business structure in connection with REITs, Woori Financial Holdings
and the affiliates of the Group. Above all, what is noteworthy is the
possibility of developing Anchor REITs using the enormous financial
firepower of the Group and its network. Woori Asset Trust plans to
solidify its business base centering on safe, traditional assets, such as
office and retail properties, and target the REITs market in housing and
urban regeneration in order to raise brand awareness as quickly as
possible and gain a greater chunk of the market.
025
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 08
Woori Asset
Management
Establishes
ESG Investment
Processes and
Operates the
Industry’s Largest
Fixed-Income
ESG Fund
Woori Asset Management has renamed its publicly offered fund as
“Woori High Plus Short-term High Graded ESG Bond Sec Feeder Inv
Trust 1 (Bond Fund)” and incorporated the ESG management strategy
into its investment management strategy. While pursuing profitability by
maintaining the original management strategy, it will be considering ESG in the
KRW
400
billion
investment decision-making stage so as to reduce non-financial risks and ensure stability and sustainability
simultaneously. Woori Asset Management has gained confidence from its customers, attested by the fact that
it has been chosen as the MMF management company by the National Health Insurance Service seven times
in a row. In November 2020, it became the first in the industry to launch a fund product in connection with the
Shanghai Stock Exchange Science and Technology Innovation Board (SSE STAR), which is described as the
Shanghai equivalent of NASDAQ, and launched a TDF in connection with BlackRock. Further, it has taken a
strategic approach in setting up ESG investment processes in response to the growing interest in environmen-
tally conscious and sustainable management among domestic companies. Recently, Woori Asset Manage-
ment officially began ESG investment, managing the largest fixed-income ESG fund valued at KRW 400 billion,
the largest of its kind in the industry, with plans to assume a leadership position in ESG fixed-income invest-
ment funds. Following the appointment of Choi Young-gwon, known as an ESG investment expert, as CEO, the
Business Portfolio
Woori Financial Group is reinforcing its competitiveness as a finan-
expected to achieve accelerated based on the Group’s risk manage-
cial group engaging in businesses across the financial sector and en-
ment capabilities and collaborations with other affiliates including
deavoring to expand its business portfolio to include M&A and more.
Woori Bank. Meanwhile, Woori Savings Bank, which had initially been
Since the establishment of the holding company in 2019, the Group’s
incorporated as a sub-subsidiary, was incorporated as a subsidiary of
portfolio has been expanded to include asset management compa-
nies, Real Estate Trust company, capital lending and savings bank
operations, and it will continue its efforts in expanding the non-bank-
ing business portfolio in areas of securities, insurance, VC and NPL
investments to emerge as a leading financial group with the optimal
business portfolio.
Woori Financial Group through cash acquisition on March 12, 2021
and was granted an equal position as other subsidiaries, thereby cre-
ating the foundation for the affiliates to create synergy. On April 15,
2021, the shares (12.65%) held by Aju Corporation, the second biggest
shareholder of Woori Financial Capital, were acquired to increase the
percentage of shares to 86.89%.
2021 Plans
In 2021, Woori Financial Group will continue on with its strategy to
company newly established the Responsible Investment Research Team and has been working closely with
2020 Performance
external ESG evaluation agencies, with emphasis on the importance of responsible investment.
09
Woori Fund Services Reaches
KRW 142 Trillion in AUM
10
Woori FIS Sets a New Record with the Uninter-
rupted Operations Campaign, Clean Road 90
Woori Fund Services reached KRW 142 trillion in assets under man-
Woori FIS’ Clean Road 90 campaign is aimed at preventing interrup-
agement (AUM) based on the closing balance on March 18, 2021.
tions in system operation to ensure smooth financial transactions
Woori Fund Services, entrusted with the affairs of funds by Woori
during peak demand such as on holidays. It set a new record for the
In December 2020, Woori Financial Capital (formerly, Aju Capital) and
expand its non-banking business portfolio, including M&As, to secure
Woori Savings Bank (formerly, Aju Savings Bank) were incorporated
mid- and long-term growth engines and complete its business portfo-
into the Group as a subsidiary and a sub-subsidiary, respectively, for
lio lineup. By expanding into various non-banking businesses through
consumer financing services. Woori Financial Capital, with a com-
securities, VC and NPL investment companies, the Group plans to
petitive advantage in the auto financing business, recorded KRW 7.8
power sustainable growth after the end of the COVID-19 pandemic
trillion in total assets, KRW 96.7 billion in net income and 12.4% in ROE
and grapple with prolonged low interest rates. Furthermore, it will seek
in 2020, while Woori Savings Bank, generating more than KRW 10.0
measures to incorporate non-banking businesses into the portfolio
billion in net income annually, is also expected to greatly contribute to
from various perspectives and manage and nurture the newly incor-
boosting income for the Group and improving shareholder value. Fur-
porated asset management companies, trust and capital companies
thermore, two companies, which are experiencing stability in raising
and savings bank operations, with the aim of drastically improving its
Asset Management in March 2020, has successfully positioned itself
longest uninterrupted system operation at 140 days on December 30,
capital and lower interest rates as part of Woori Financial Group, are
competitiveness and solidifying the synergistic system.
as a major transfer agent in just a decade after its inception. Since
2020, which was a major leap from its previous record of 53 days set
commencing services as a transfer agent for Woori Global Asset Man-
in 2019. Clean Road 90 is a campaign initiated to run an uninterrupted
agement in September 2020, its AUM has been on a steady rise. It also
computer system for a 90-day cycle, based on an IT operating system
acquired an investment pool from a private pension fund in December
with high integrity, for the purpose of ensuring stability in IT services.
2020 and continued business activities in asset management, private
Woori FIS achieved stabilization of the next-generation system of Woori
equity management and REITs. The AUM (closing balance), which has
Bank through the recent campaign, with the number of interruptions
been steadily increasing from KRW 62.8 trillion in 2016 to KRW 71.3
dropping by 57% in 2019 and 77% in 2020 compared to 2017 before
trillion in 2017, KRW 75.9 trillion in 2018, KRW 92.2 trillion in 2019 and
the system was introduced. Woori FIS, providing IT services to Woori
KRW 134.5 trillion in 2020, jumped by more than 5.7% to KRW 142.3
Bank, Woori Card and other affiliates, has been checking and controlling
trillion in 2021 (as of March 18, 2021). Meanwhile, the AUM (closing
factors causing system interruptions in order to drastically improve the
balance) in the first half of 2021 is projected to increase by more than
quality of the computer system. As a result, the system was able to
11.5% and reach over KRW 150 trillion. Woori Fund Services over-
handle the massive loads occurring during holidays, such as the Lunar
hauled its risk management system in March 2020 and improved fund
New Year and Chuseok, caused by a surge in transactions.
Expansion of Business Portfolio
2019
Woori
Global
Asset
Management
Woori
Asset
Trust
Woori
Asset
Management
2020
Woori
Financial
Capital
Woori
Savings Bank
compliance. In August, it set up a management instruction forwarding
system to manage the entire process in which the asset management
company delivers management instructions to the transfer agent, with
the aim of achieving technical innovation and stringent risk manage-
ment. Using its knowhow in serving as a transfer agent for a major
asset management company, it has been handling the newly obtained
AUM with ease and is poised to achieve further growth in the future.
026
Number of
system interruptions
in 2020 compared to 2017
decreased by
77%
Woori
Bank
Woori
Card
Woori
Investment
Bank
Woori
Credit
Information
Woori
Fund
Service
Woori
Private
Equity Asset
Management
Woori
FIS
Woori
Finance
Research
Institute
027
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Synergy Promotion
Woori Financial Group has been expanding the areas of synergy cre-
2020 Performance
2021 Plans
ation by incorporating additional subsidiaries since its establishment
in January 2019. In order to continually build its capacity as a financial
group, it is encouraging collaboration among its subsidiaries, pro-
moting new business areas for synergy creation, offering advanced
financial services and endeavoring to maximize profit. The Synergy
Council, in which the Group and all its thirteen subsidiaries participate,
In 2020, marking the second anniversary of the founding of the holding
In 2021, Woori Financial Group will attempt to level-up the perfor-
achieving stable operations of the newly incorporated subsidiaries as
company, Woori Financial Group made full-fledged efforts toward syn-
mance across all areas of synergy creation in an effort to achieve syn-
soon as possible and innovating the group control system. Further-
ergy creation based on the synergy operating system it had created.
ergy transformation. To this end, Woori Financial Group will promote
more, when acquiring additional companies, such as a securities firm,
The thirteen subsidiaries discovered and pursued a total of nineteen
collaboration between the four business areas (retail, asset manage-
through M&A, collaboration among the subsidiaries will be strength-
businesses for synergy creation and produced tangible results based
ment/pension, CIB and global business operations) and business
ened, with Woori Financial Group playing a central role, in an effort to
on cross-selling and joint marketing. The synergy creation projects are
units and between the newly incorporated subsidiaries and other sub-
achieve continuous growth by increasing market shares in the banking
plans new businesses and carries out joint marketing campaigns to
systematically managed by the Synergy Council, consisting of execu-
sidiaries of the Group. Also, it will strive for mega-growth of synergy
and non-banking sectors.
maximize synergy and generating additional profits, in addition to
tives in charge of related projects; the Synergy Working Level Council,
of the Group, based on three strategies: expanding joint businesses,
seeking measures to reduce costs.
WOORI
FINANCIAL
GROUP
Woori Bank
Woori Card
Woori Investment
Bank
Woori Asset
Trust
Woori Asset
Management
Woori Credit
Information
Woori Fund
Service
Woori Private
Equity Asset
Management
Woori
Global Asset
Management
Woori Finance
Information
System
Woori Finance
Research
Institute
Woori
Financial Capital
consisting of department heads at the forefront of project implemen-
tation, and unit meetings held in the presence of working-level staff of
each project.
The Group Synergy Creation Section and the Group Synergy Idea
Contest helped draw attention to synergy creation and encouraged
members of the organization to discover and pursue new businesses
in their day-to-day activities. By developing profit-generating models
through the Group synergy systems, the following core project were
pursued:
First, efforts were made to boost the executives’ and employees’ inter-
est and participation in projects to create synergy with other business
units. The unit projects derived from the oversight organization were
further subdivided to be implemented by each business unit. Of the
projects discovered by business units, those requiring oversight at the
Expansion of Business Portfolio
first-level subsidiary
13
second-level subsidiary 14
Woori Financial Group
(as of Apr. 30. 2021)
Group level were carried out as Group-wide projects.
100%
100%
86.9%
58.7%
51.0%
73.0%
100%
100%
100%
100%
100%
100%
100%
Woori
Bank
Woori
Card
Woori
Financial
Capital
Woori
Investment
Bank
Woori
Asset
Trust
Woori
Asset
Manage-
ment
Woori
Savings
Bank
Woori
Credit
Information
Woori
Fund
Service
Woori
Private
Equity
Asset
Manage-
ment
Woori
Global
Asset
Manage-
ment
Woori
FIS
Woori
Finance
Research
Institute
Second, the competitiveness of the non-banking business units was
reinforced by managing the performance of newly incorporated sub-
sidiaries and supporting their growth. Joint projects and marketing
campaigns were discovered for Woori Financial Capital, Woori Savings
Bank and other subsidiaries. Of particular note, the synergy created
with the newly incorporated subsidiaries was maximized by promoting
their collaboration with Woori Bank.
Third, tangible results were produced by establishing strategies and
pursuing businesses for synergy creation among Woori Bank, Woori
Card and Woori Investment Bank. The driving force behind joint proj-
ects was boosted by facilitating communication among the subsid-
iaries and coordinating the projects in such a way that would protect
PT Bank Woori Saudara Indonesia
79.88%
Woori Finance Myanmar
their respective interests.
AO Woori Bank (Russia)
100%
WB Finance Co., Ltd (Cambodia)
Banco Woori Bank do Brazil S.A.
100%
Woori Bank Europe Gmbh (Germany)
100%
100%
100%
Korea BTL Infrastructure Fund
99.88%
Woori Global Markets Asia Limited (Hong Kong)
100%
Woori America Bank
100%
Woori Bank Vietnam Limited
100%
Woori Bank China Limited
100%
Woori Wealth Development Bank (Philippines)
51%
Tutu
Finance-
WCI
Myanmar
Woori-
Hanwha
Eureka
Private
Equity Fund
100%
0.80%
Woori
Savings Bank
Date of incorporation as a (sub-) subsidiary
Percentage of shares acquired
Dec. 10. 2020
74.04% 86.89%
Mar. 12. 2021
100%
Aju Capital Woori Financial Capital
Aju Savings Bank Woori Savings Bank
028
029
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Digital Innovation
With the prolonged low interest rates, entry of BigTech companies
into the finance industry and growth of digital finance among other
factors, it has become essential to strive for digital transformation.
To achieve digital innovation as quickly as possible, Woori Financial
Group has established a digital system in relation to its vision, orga-
nization and tasks by setting a digital control tower and set forth 3
goals, 10 implementation tasks and 40 innovation tasks to realize the
vision. Based on the digital transformation policy established in 2020,
Woori Financial Group will make a giant leap to become the No.1 digi-
tal financial group in the world in 2021.
2020 Performance
Accelerated Digital Transformation of the Group
Woori Financial Group has established the Digital Innovation Commit-
tee to play the role of a digital control tower for the Group, followed by
the selection of 40 innovation tasks to achieve swift and powerful dig-
ital transformation. First of all, digitization of the business processes
using Robotics Process Automation (RPA) has produced the effect of
boosting the work speed and cutting costs, while zero-contact busi-
ness operations were promoted by carrying out loan processes for
small business owners and offering a number of products exclusively
on mobile platforms and the web. In order to accelerate the digital
transformation of offline channels, a system was introduced to allow
customers to fill out documents on mobile devices and a mobile ap-
pointment booking service was introduced. An Out-Door Sales (ODS)
system was set up to improve sales capacity as well.
Leading New Businesses and Strengthening
the Digital Capacity
2021 Plans
Woori Financial Group will strive to become the No.1 digital financial
Secondly, Woori Financial Group will lead the future of the finance
Woori Bank and Woori Card obtained official approval for the credit
group in 2021, based on the digital transformation policy set forth in
industry through Coopetition (cooperation + competition). As part of
information management business (MyData) from the Financial Ser-
2020.
vices Commission. Through this business, they will provide person-
alized MyData services, allowing users to make various decisions in
their day-to-day lives based on their personal data. Moreover, internal
controls were reinforced using RegTech, a way of using information
technology to enhance regulatory processes, and open banking ser-
vices were improved so that customers could access the accounts of
other banks in a faster and more convenient way. Also, the Group is
building cloud infrastructure for all the affiliates in order to switch to a
cloud environment characterized by speed and flexibility.
Woori Financial Group reorganized DinnoLab, a startup cooperation
program that has been in operation since 2016, as a joint program
of the Group in June 2020. Through this program, the Group has dis-
covered 54 startups, with which the subsidiaries of the Group have
In recognition of the imminent transition to a platform-based payment
and settlement market, the Group plans to create and launch an inte-
grated payment platform. It will be provided as an open service to ex-
pand the payment and settlement ecosystem centering on the Group’s
platform and, at the same time, common services from the Group will
be provided on the platform to improve customer convenience. While
increasing seamless services by connecting the digital channels of
subsidiaries, the digital synergy created by the subsidiaries will be fur-
ther boosted through an integrated membership program, integrated
these efforts, it is discovering innovative startups through DinnoLab
and Global Hackathons, through which it is internalizing innovative
technologies and services as well as a culture of innovation. By part-
nering with credible media outlets and platforms, it will secure online
promotion and marketing channels and create content related to start-
ups to spearhead the creation of a startup ecosystem. Woori Financial
Group will also find partners in other industries, including distribution
and communications, to broaden customer touchpoints, while ex-
panding its external network by discovering ways to cooperate with
TechFin companies that are setting new trends in finance.
products and integrated marketing. The Group also plans to pursue
Last but not least, Woori Financial Group will sharpen its digital com-
the MyData program in full swing. By jointly creating a MyData ecosys-
petency. In addition to building an integrated education and training
tem within the group, it will create an inter-subsidiary cooperation sys-
platform to foster digital experts, the Group will operate digital indus-
tem and introduce a platform that provides information on products
try-university cooperation programs consisting of practical training
collaborated on 16 projects, and this helped the Group successfully
offered by the Group.
internalize new digital technologies such as FinTech, AI and big data.
Furthermore, Woori A-D Venture, an in-house venture incubation pro-
gram, was incepted as part of the effort to drive forth innovation within
the Group.
and hands-on experiences. By propagating the agile culture across all
areas of the Group, it will pursue digital transformation with speed and
success.
Digital Structure of Woori Financial Group
Reinforcement of the Digital Platforms
Digital Transformation
Woori Financial Group reinforced the digital platforms serving as non-
face-to-face customer touchpoints. First of all, Woori WON Banking,
Woori Card App and Woori Pay App for retail customers were upgrad-
ed. In addition to simplifying the product subscription procedures, the
product recommendation page was designed to provide information
the most suitable products in consideration of the customer’s transac-
tion patterns, age and other factors. The Group also launched Woori
WON Together, a one-stop service allowing users to manage their
assets with Woori Bank, Woori Card, Woori Investment Bank, etc., sub-
scribe to products offered by other subsidiaries and apply for issuance
of a new card. Woori Financial Group began servicing Corporate Woori
WON Banking Customers to increase the contact points for corporate
customers. The app providing financial service tailored to the needs of
corporate customers offers a customizable main page, non-face-to-
face loan services and up to 500 simultaneous transfers.
030
• Established the Digital Innovation Committee and
selected innovation projects
• Pursued digitization of work processes based on
robotics process automation (RPA)
• Pursued digitization of face-to-face channels and
reinforced non-face-to-face channels
Digital Innovation Committee
• Chairman: (CEO) Woori Financial Group
• Members: (CEO) Woori Bank / Woori Card /
Woori Investment Bank / Woori FIS
(Head) Strategy Planning Division /
IT & Digital Unit, Woori Financial Group
Digital Innovation Unit
• Unit Head: (CEO) Woori Bank
Working Group (Organizer) - Head of IT&Digital Unit
031
Woori Financial GroupInnovation Team (Blue Team)IT&Digital UnitStrategy Planning DivisionWoori BankDigital Banking Business GroupManagement & Finance Planning GroupWoori CardDigital GroupManagement Planning DivisionWoori Investment BankManagement Support DivisionWoori FISIT&Digital UnitManagement Planning DivisionINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Global Business
In the midst of internal and external challenges in 2020, Woori Bank
In line with the spread of contactless practices across the world due
2020 Performance
strengthened the integrity of its network in the Southeast Asian
to COVID-19, Woori Bank renewed the global mobile banking services
market that is highly profitable with a strong growth potential and
in Vietnam and other overseas locations, developed new products
increased its capital. By implementing region-specific business strat-
exclusively for mobile platforms and launched services in partnership
egies and taking advantage of its outstanding non-face-to-face chan-
with FinTech companies. By introducing the tablet branch system,
nels, the company paved the foundation for sustainable growth with
it successfully built the infrastructure for Out-Door Sales (ODS). To
respect to its global business operations.
grapple with increased risks, the company sought to ensure asset
By adding business channels in promising regions, such as Vietnam
and Indonesia, Woori Bank expanded its global network to include 447
branches worldwide. Through the merger of the subsidiary in Cambo-
dia and relocation of business establishments, it improved its network
efficiency and broadened its retail business channels. It further height-
ened its growth potential by increasing capital in the Vietnamese and
Cambodian markets that have been achieving accelerated growth.
soundness and upgraded its internal control system through related
consulting on AML and so on.
Expansion of the Global Network
Woori Bank became the first commercial bank in Korea to open an
overseas branch, launching operations in Tokyo in November 1968.
After taking the first step toward the global stage, it has been relent-
lessly endeavoring to gain a stronger foothold in the global financial
markets. In 2014, it became the first Korean bank to acquire a bank
listed on an overseas stock exchange and launched PT Bank Woori
Saudara in Indonesia. Shortly after in 2016, it acquired a savings bank
in the Philippines and has been creating synergy with its partner,
VICSAL Group, ever since. Following the acquisition of WB Finance, a
savings bank in Cambodia, in June 2018, Woori Bank gained a greater
Total assets
Operating income
USD 33.7 billion
(19% YoY increase)
USD 570 million
NPL ratio
0.94%
Woori Bank
Europe Gmbh
(Germany)
London
Poland
Overseas subsidiaries
Overseas branches
Representative offices
Group Global Network
473
(23 countries)
032
AO Woori Bank (Russia)
Woori Bank China Limited
Tutu Finance-WCI Myanmar
Woori Finance Myanmar
WB Finance Co., Ltd.
(Cambodia)
Woori Bank Vietnam
Limited
Woori Global Markets Asia
Limited (Hong Kong)
SEOUL
Tokyo
Hong Kong
Mumbai
Bahrain
Dubai
Gurgaon
Dhaka
Chennai
Yangon
Kuala Lumpur
Singapore
Woori Wealth Development
Bank (Philippines)
PT Bank Woori Saudara
Indonesia
Sydney
12
Overseas
subsidiaries
(421)
14
Overseas
branches
8
5
Overseas
sub-branches
Representative
offices
Los Angeles
New York
Woori America Bank
and F/X, was implemented.
Strengthening Global Digital Business Infrastructure
Woori Bank is sharpening its competitive edge using non-face-to-face
channels in an effort to respond to the changes in the global financial
environment and set new trends. It renewed its mobile banking services
in Vietnam and other overseas locations, began offering a wide range
of products on mobile platforms, such as a mid-range interest rate loan,
and introduced the tablet branch system in Indonesia for ODS.
By forming partnerships with local FinTech companies among others,
Woori Bank was able to launch products exclusively available on mobile
platforms, such as the easy money transfer service in partnership with
ZellePay in the United States and non-facial revolving credit facility prod-
ucts receivables in partnership with FIN2B in Vietnam, and expanded its
local business operations using digital technology.
Banco Woori Bank
do Brazil S.A.
033
business coverage across the country, and in November, it founded
Woori Bank Europe in Germany, thereby creating a base to advance
into other regions in Europe.
In 2020, Woori Bank opened three branches overseas, Hoam Kiem
Branch in Vietnam, Dallas Branch in the United States and Asabrise-
marang cash-office in Indonesia, resulting in a global network of 447
branches. It is pursuing organic growth based on key areas in Bangla-
desh and Myanmar as well. Through a merger between Woori Cambo-
dia Finance and WB Finance, the local subsidiaries in Cambodia, Woori
Bank successfully laid the groundwork to emerge as a leading financial
institution in the country.
Securing Sustainable Growth Engines for Global Business
Operations
In order to secure sustainable growth engines for global business op-
erations, Woori Bank pursued substantial growth centering on capital
increase and high-yield assets.
It pursued localized business operations, with capital increases in the
fast-growing Vietnam and Cambodia and an expansion of the product
lineup for retail customers in emerging markets according to the local
economic and financial environments, through which it gained stronger
market dominance. In advanced countries, on the other hand, a two-way
strategy to strengthen competitiveness in corporate finance, such as IB
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 ESG Management
Building Relationships with Global Banks
2021 Plans
The recent trend seen across the world is the increasing empha-
Proclamation of the ESG Management Principles
Woori Bank has been forming friendly ties and strengthening cooper-
Implementing Growth Strategies at Each Branch
ation with prominent banks around the world. Through these efforts,
it has been able to secure credit lines to provide financial support to
Korean enterprises expanding into overseas markets as well as local
blue-chip companies. Through a wide range of trade finance tech-
niques, such as bills bought and Banker’s usance and other L/C trans-
actions as well as payment guarantees, Woori Bank is contributing to
Woori Bank plans to pursue change and growth in its global business
operations by pursuing structural improvement in 2021. It will group
overseas branches according to the region-specific business environ-
ment and establish growth strategies tailored to each group.
sis placed on non-financial performance of companies centering
on sustainability, such as environmental protection activities, CSR
management and transparent management. Along with this, ESG
management has become crucial, which is evidenced by the fact that
institutional investors are considering ESG when making investment
In January 2021, the ‘Woori Financial Group ESG Management Princi-
ples’, the key points of which are to practice ESG management at the
Group level and to lead the financial industry in fulfilling social responsi-
bility, were established and proclaimed. The declaration consists of the
Top 6 ESG Management Principles, which concern pursuing manage-
decisions. In consideration of this new paradigm, Woori Financial
ment activities in connection with the relevant global initiatives, specif-
Group has established an ESG strategy to pursue sustainable growth
ically the UN SDGs and the Paris Agreement, exerting positive impacts
the promotion of import and export transactions.
Securing Additional Growth Engines for the Future
and set up an ESG management system to integrate the ESG frame-
on the environment and society through financial products and services
Reinforcing Compliance and Internal Controls
With financial authorities worldwide raising the bar on compliance,
Woori Bank upgraded a filtering system in relation to AML and sanc-
tions and diagnosed the compliance levels of domestic and overseas
Woori Bank will strengthen its competitiveness in digital channels as a
means to secure additional growth engines for the future and operate
such channels strategically by concentrating its investments in high-
growth, high-return regions.
branches together with a consulting firm. Based on the results, it
Increasing Local Support
made ongoing improvements to various aspects including the op-
erating manual. It shared matters requiring improvement through
working-level meetings with members from relevant departments at
the headquarters to boost the capacity to achieve global compliance.
Training programs are also administered through internal instructors
and external agencies for capacity building of personnel responsible
for compliance.
Providing Support for Overcoming COVID-19 Worldwide
Woori Bank joined in on the international efforts to overcome the
COVID-19 crisis and commenced social contribution activities be-
yond the borders of Korea through local subsidiaries. Relief supplies
and monetary donations were delivered to Wuhan, China in order to
help contain the virus. In addition, Woori Bank donated money, hand
sanitizers and face masks to Cambodia and hazmat suits to Jakarta,
Indonesia.
Woori Bank will increase training programs for capacity building of em-
ployees dispatched abroad and invigorate local business operations by
hiring locals at overseas branches. It will maximize the synergistic effect
by pursuing collaborations with relevant business groups and increase
collaborative operations among branches at home and abroad.
Ensuring Sound Risk Management
In order to prevent a surge in insolvency filings in the post-COVID-19 era,
Woori Bank will examine and manage asset soundness in advance and
ensure systematic management by upgrading its internal control sys-
tem in the aspects of AML and operational risk.
work into its corporate culture.
and endeavoring to manage related risks.
2020 Performance
Declaration of Reinforcing ESG Management
Woori Financial Group included ‘Reinforcing ESG management’ as a
core strategy among its mid- and long-term strategies and the 2021
management strategies and established an ESG organizational struc-
ture to underpin the efforts to strengthen ESG management. In addition
to proclaiming the ‘Woori Financial Group ESG Management Principles’
at the 2021 1H Management Strategy Workshop, the Group joined the
CDP* and endorsed the recommendations of TCFD**, as part of its ef-
forts to pursue sustainable management and lead the financial industry
in fulfilling its environmental and social responsibilities.
Establishing the ESG Organizational Structure
Establishing an ESG Organization and the Group ESG Management
Council•Woori Financial Group newly established the ESG organiza-
tional structure in order to pave the foundation for strengthening ESG
management. In December 2020, departments dedicated to ESG were
established in Woori Financial Holdings and Woori Bank following reor-
ganization of the Group. Then, in January 2021, the Group ESG Manage-
ment Council, comprised of the CEOs of the affiliates as members, was
launched to raise efficiency in ESG management and facilitate commu-
nication and cooperation among the affiliates in ESG management ac-
tivities. Based on the newly established ESG organizations and council,
Woori Financial Group will pursue world-class ESG management and
serve as a leader.
ESG Structure of Woori Financial Group
Board of Directors
034
ESG Management
Committee
(Subsidiaries)
ESG-related
departments
(Working-Level)
Group ESG
Management Council
(Holding Company)
ESG Management
Department
035
Audit CommitteeRisk Management CommitteeCompensation CommitteeOfficer Candidate Recommendation CommitteeGroup CEO Candidate Recommendation CommitteeGroup ESG Management Council Internal Control Management Committee INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Establishment of the ESG Management Committee within the
Board•For the purpose of consolidating the ESG organizational struc-
ture and bolstering ESG management, Woori Financial Group estab-
lished the ESG Management Committee within the Board of Directors in
March 2021. The Group’s ESG management activities will be managed
and supervised by the Board, based on which a robust ESG manage-
ment system will be created. The ESG Management Committee, com-
prised of 9 inside and outside directors from Woori Financial Holdings,
will play the role of the top decision-making body in ESG management
of the Group.
2021 Plans
Preparing Mid- and Long-Term ESG Strategies for the Group
Establishment of an ESG Strategy System •Woori Financial Group
plans to pursue effective risk management activities and produce
Promoting ESG Finance
Establishment of ESG Finance Principles & ESG Finance Classifica-
tion System •Woori Financial Group plans to effectively respond to
various social and environmental issues and the interests of stakehold-
ers through the establishment of the ESG finance principles. The Woori
Financial Group Principles for ESG Finance were established for the
purpose of joining the global current of switching to a low-carbon econ-
omy, expanding upon inclusive finance to solve environmental, financial
and social issues and contributing to the sustainable development of
society as a whole. The Woori Financial Group Principles for ESG Fi-
nance outline the background and purpose of ESG finance, governance,
framework, scope and principles, monitoring and reporting. Meanwhile,
in order to take leadership in ESG finance, Woori Financial Group is
setting up an ESG finance classification system within the Group. The
classification system, which will be applicable to all products offered by
the Group including credit, depository, PF and investment, will contrib-
excellent business performance, based on an advanced ESG strategy
ute to the transparent and clear ESG finance product development and
system. Of particular note, the Group has set forth mid- and long-term
dissemination. The ESG finance classification system, which is set to
strategic goals in ESG and is discovering and implementing related
be announced in the first half of 2021, will help Woori Financial Group
tasks to meet the needs of diverse stakeholders. Furthermore, in order
effectively manage the ESG finance performance in an integrated man-
to promote ESG management at the Group level, ESG goals began to
ner with the actual management performance.
be assigned to each affiliate in 2021, with plans to put forth a system
in which their performance will be evaluated by the management.
Sophisticating the Strategic System in Connection with Global Ini-
tiatives •With the growing importance of effectively responding to
climate change risks, Woori Financial Group has been carrying out
Green New Deal Policy and ESG Finance Verification (Certification)
•There are plans to offer a wider ranger of products in connection
with the government policy to promote green finance and inclusive
finance on a broader scale. Woori Financial Group will contribute
KRW 4.2 trillion for Digital New Deal, KRW 4.7 trillion for Green New
GOALS
Strengthening the ESG Capacity of Subsidiaries •Woori Financial
Group has derived a wide variety of strategic tasks to internalize ESG
subsidiaries have each formulated specific implementation plans. The
tasks that must be carried out for internalization of ESG management,
management across the organization and strengthen ESG capacity.
such as preparing a system for nurturing female managers and set-
These tasks were largely divided into ‘Common Tasks,’ ‘Industry-Spe-
ting up a human rights management system, are being carried out as
cific Tasks,’ derived in consideration of the nature of business of each
swiftly as possible, as part of the efforts to strengthen the ESG capaci-
subsidiary, and ‘Tasks in Response to Government Policies,’ and the
ty across the organization.
Woori Financial Group’s ESG Goals and Tasks
2021 1H
2021 2H
2022~
• Derive strategic tasks for the Group
• Execute mid- and long-term strategic
• Support affiliates in building their
tasks
• Complete the internalization of sus-
tainable finance within the Group
ESG capacity
• Prepare a performance monitoring
• Sophisticate the ESG management
system for the Group
activities of the Group
environmental management activities in connection with global ini-
Deal and KRW 1.1 trillion for reinforcement of safety nets, for a total
tiatives. In January 2021, the Group declared its support for the TCFD
of KRW 10 trillion, in the course of the next five years. While providing
and is set to establish a mid- and long-term implementation roadmap
green finance support in connection with the government’s Green New
in 2021. There are plans to create a system to check and manage the
Deal Policy and 2050 Carbon Neutral Policy, the Group will increase
performance related to reducing Greenhouse Gas (GHG) emissions in
its PF investments in new and renewable energy, such as hydrogen
• Select the mid- and long-term stra-
tegic directions and tasks for ESG
management
• Create the foundation for internal-
ization of the sustainable finance
four areas, ‘Governance,’ ‘Strategies,’ ‘Risk Management’ and ‘Quantita-
fuel cells, wind power and solar power, to contribute to the transition
TASKS
classification system
• Examine the performance of strategic
• Compile and give feedback on the
tasks by each affiliate
outcomes of strategic tasks
• Pursue internalization of the sustain-
able finance classification system
• Comprehensively manage the sus-
tainable finance performance of the
• Reflect and evaluate the implementa-
Group
tion of ESG tasks as a KPI
• Evaluate the ESG management level
tive Indicators/Goals, and introduce a process for tracking the results.
to a low-carbon economy. Meanwhile, with the release of ESG finance
The relevant performance will be disclosed to the public through the
products by domestic and foreign entities, it has been noted that there
• Prepare measures for ESG capacity
building
of the Group and derive support
measures
issuance of sustainable management reports.
In the case of CDP, response to climate change risks and opportunities
were designated as major strategic tasks upon joining the organiza-
tion in February 2021, based on which Woori Financial Group will set
forth mid- and long-term GHG emission reduction goals for the Group
and be committed to becoming a carbon neutral financial group. Also,
in the second half of 2021, an integrated environmental control sys-
tem will be set up for the Group, with plans to systematically control
GHG emissions, waste production and energy and water consumption
of the Group and disclose the related data with transparency following
verification by an external agency.
is a need to verify and certify these products. This past March, Woori
Financial Group became the first financial holding company in Korea
to issue an ESG bond that was given the highest ESG certification
grade (ST1). By ensuring thorough follow-up management, the Group
will contribute to the creation of a virtual cycle of ESG finance in finan-
cial markets.
Woori Financial Group’s Milestones in Relation in Global Initiatives
Nov. 2019
Jan. 2020
Dec. 2020
Jan. 2021
Joined the UNEP FI
Signed the PRB
Declared to end
coal finance
Declared support for
the CDP and TCFD
036
037
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Risk Management
With the rise of contactless services to better cope with COVID-19,
Also, in reflection of the final Basel III reforms that are set to be im-
2021 Plans
a digital transformation has occurred in nearly all aspects of life, in-
plemented starting in 2023, Woori Financial Group developed and
cluding banking. As of June 2020, 64.3% of all banking services are
introduced the top 3 risk (operating, market and credit) management
obtained on either the Internet or mobile platform, quite a jump from
system. In September 2020, a credit risk management system was in-
52.2% in 2018. Financial markets are seen a surge in online transac-
tions arising from technological advances, an introduction of non-
face-to-face authentication services and ease of use, and competition
troduced to be prepared for the regulatory requirements of Basel III, and
it became the first financial holding company to set up operating and
market risk management systems as well in March 2021.
is intensifying across all business areas, including areas centering
As a result, Woori Financial Group was able to promote its operating
on contactless products and services and platform, with the entry of
stability by eliminating potential risks and managing losses and build
BigTech companies, such as Naver, Kakao Bank and Toss. Accord-
the foundation for recovering from the effects of unexpected risks, such
ingly, Woori Financial Group continually comes up with measures to
as the pandemic, for a business continuity plan.
cover emerging risks in relation to the changes in financial markets.
Reinforced Risk and Internal Controls
2020 was a tough year for many sectors due to COVID-19, and the fi-
nancial sector is expected to be exposed to a number of risk factors in
2021. With the enforcement of the Financial Consumer Protection Act
in 2021, Woori Financial Group will endeavor to build an impeccable in-
ternal control system, a prerequisite to ensuring consumer protection
and excellent sale processes. Potential risks will be continually moni-
tored and the investment assets of the Group will be examined more
thoroughly.
Woori Bank, an important subsidiary of Woori Financial Group, will
reestablish its business model encompassing products and ser-
Details of the Emerging Risk Management System
Conduct Risk•There are plans to subdivide risk factors according
to the non-face-to-face product subscription stages, which include
consultation, sale and follow-up management, in order to examine
risk factors for each step. Also, Woori Financial Group has secured
the time necessary to be prepared for the final Basel III reforms by
introducing an operating risk management system (Principles for the
Sound Management of Operational Risk, PSMOR) for the first time
among the 8 major financial holding companies in Korea. Based on
trial and error before the implementation of Basel III, it will endeavor to
improve the system and promote operating stability.
2020 Performance
Detailed Analysis of Emerging Risks
Digital innovations, including FinTech, bring forth new opportunities in
financial markets, but at the same time, they can act as serious risk
factors for businesses without any proper management measures.
For instance, there are operating and reputation risks associated with
misuse or abuse of customer information or leakage thereof, which can
be devastating for the company. After recognizing the changes in its
environment, such as changes in financial markets, rising transactions
resulting from technological advancement and rapid speed of financial
transactions, Woori Financial Group analyzed the potential risks of ex-
panding non-face-to-face product and service channels in relation to the
elimination of geographical limitations, accessibility of external users,
anonymity of users and use of public networks. Based on the analysis,
three emerging risks were predicted: conduct risk; digital fraud risk; and
cyber security and data privacy risk. First, conduct risk refers to a risk of
causing adverse outcomes for customers with poorly designed prod-
ucts or sales processes in the midst of a flood of information due to
diversified sales channels and digitization. Next, digital fraud risk is a risk
of causing losses to the bank by subscribing to a fraudulent product via
a non-face-to-face channel. Lastly, cyber security and data privacy risk
is a risk that arises from misuse and mismanagement of personal data
obtained via non-face-to-face channels.
Development of the Top 3 Risk Management System
Following Reform
In 2020, Woori Financial Group formed an emergency management
committee in early on in the face of an unprecedented global crisis
brought upon by COVID-19 to systematically deal with the ensuing chal-
lenges, with the safety of customers and staff as its No.1 priority.
038
Monitoring Indicators for Emerging Risk Management
Conduct Risk
•No. of Subscribers by age group
•No. of Scrapping errors
•No. of Same-day cancellations
•No. of Subscriptions by seniors and minors
•No. of Failed real name verification attempts
Cyber Security & Data Privacy Risk
•No. of Hacking attempts
•No. of System failures
•No. of Security patch installations
•App log increase rate
•Average app usage time by customer
Digital Fraud Risk
• No. of Subscriptions using prepaid phone
numbers
•No. of Financial fraud cases
• No. of Login attempts from overseas IP
addresses
• No. of Login attempts after re-reporting the
password
• No. of Subscribers with erroneous custom-
er information
vices, processes and data with the aim of achieving cutting-edge
data-centric banking services, based on a mid- to long-term strategy to
Cyber Security & Data Privacy Risk•Cyber security risks will be mit-
igated by monitoring for hacking and information leakage, while data
strengthen the digital business.
Management Measures for Emerging Risks
privacy risks will be addressed by setting forth a clear set of standards
in relation to the use of personal information. In addition, core digital
technologies, such as cloud, machine learning and AI, will be intro-
duced, in addition to establishing a system to recruit and foster digital
Non-face-to-face channels are characterized by ease of access, sim-
experts, in order to build the necessary infrastructure and manpower
ple procedures and analysis of diverse data. It is also advantageous
for the digital channels.
for those seeking to secure new technologies, as there are many areas
that are still untapped. To better manage the emerging risks associate
with the rise of non-face-to-face channels, Woori Financial Group plans
to establish and operate an emerging risk management system with
an understanding of the characteristics unique to non-face-to-face
channels. Woori Financial Group is sharing its risk management value
and culture and systematically examining the risk factors associated
with non-face-to-face channels. Also, emerging risks are clearly identi-
fied through management reports and risk assessments and reviews
to better deal with them.
Digital Fraud Risk•There are plans to pursue multifaceted risk man-
agement by using a wide array of data based on a database created to
collect, analyze and manage internal, external, structured and unstruc-
tured data. To enable risk management based on RiskTech services,
the risk management system will be upgraded in reflection of the lat-
est digital trends, such as AI risk management, non-face-to-face credit
assessment models and fraudulent corporate loan detection system.
PSMOR in Relation to the Operating Risk Management
Development of
Products and Services
Sales of Products
and Services
Follow-up
Management
Ensure consistency and efficiency by
classifying products and services and
Strengthen the connection between
the headquarters and branches
Promote the effectiveness of risk
management by deriving monitoring
establishing a standardized manage-
centering on the key businesses and
measures suitable for each risk and
ment system for each type
perform integrated management at
control activity
the company level
039
123INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Social Responsibility
Woori Financial Group undertakes social contribution activities
2020 Performance
alongside local communities with the vision of ‘Benefit from Finance,
Warmth from Sharing.’ Based on the three core values, Humanity,
Happiness and Hopefulness, the Group is dedicated to sharing with
local communities and practicing ESG management. It has also
established its own sustainable development goals (SDGs) in con-
sideration of the nature of the financial industry and joined in on the
international effort toward sustainable development centering on five
social contribution areas: inclusive finance, fostering the future gener-
INCLUSIVE FINANCE
Support for microfinance•Woori Financial Group provides wide-rang-
ing support for microfinance in order to deliver the social value of
finance by alleviating the burden of financial costs for ordinary citizens
and to grow alongside them. With its notable microcredit product,
ation, supporting the underprivileged, spreading the mecenat spirit of
‘New Hope Spore Loan,’ Woori Bank handled KRW 551.8 billion, as of
the end of 2020. Non-face-to-face channels were opened in 2020 to
improve convenience for those who find it difficult to visit the bank
in person. ‘Sunshine Loan 17’ launched to support microfinancing in
line with the government’s policy targeted borrowers who were forced
to turn to the secondary financial sector and private lenders due to
FOSTERING THE
FUTURE GENERATION
Supporting Underprivileged Children and Youth in Online Learning•
Woori Financial Group donated KRW 500 million, which included
donations from executives and employees, to the Korea Council of
Group Home for Children and Youth to help underprivileged children
and youth engage in online learning during the pandemic. To facilitate
online learning, 340 computers and peripheral devices and online edu-
cation program vouchers were donated for children and youth belong-
ing to group homes, in addition to introducing assistant teachers for
children with disabilities. Woori Financial Group will continue its efforts
to promote equal education opportunities for underprivileged children
in the midst of rapid changes in the education environment caused by
COVID-19 and foster the future generation.
Digital Talent Promotion Project for Specialized Vocational High
Schools•Each year, Woori Financial Group offers assistance to
students from low-income facilities attending specialized vocational
Woori Bank Kkumnamu Scholarship Program
Woori Bank Kkumnamu (“Dream Tree”) Scholarship Program is a so-
cial contribution program that was launched in 2011 to foster future
generations using the Woori Love Fund with donations voluntarily
made by executives and employees from their paycheck. In 2020,
KRW 50 million in scholarships was provided to 75 children from chil-
dren’s centers with which Woori Bank has formed sisterhood ties with,
along with messages of encouragement written by executives and
employees. Not only that, but Woori Bank also invited 966 elementary
school students from children’s centers across the country to take part
in a non-face-to-face financial education program offered by Woori
Bank Museum (for a total of 53 sessions). As such, various education-
al programs are being organized to nurture future talents.
SUPPORTING
THE UNDERPRIVILEGED
Social Contribution Activities of the Employees of the Group•Woori
Financial Group has been organizing volunteer activities on an ongo-
philanthropy and protecting the environment.
Woori Financial Group’s CSR Strategies
Implementing CSR strategies aligned with the UN SDGs
for sustainable management and creation of social value
Inclusive Finance
Promoting inclusive and sustainable
economic growth and creating jobs
Fostering the future generation
Guaranteeing inclusive and equitable
quality education, promoting lifelong
learning opportunities
Supporting the underprivileged
Reducing inequality within and among
countries and contributing to social inte-
gration
Spreading the Mecenat activities
Spreading cultural value by sponsoring
the arts, cultural and sports sectors
Protecting the environment
Responding to climate change and pursu-
ing sustainable protection and restoration
of ecosystems
poor credit scores, despite having an income. Through this product,
high schools who are facing difficulties in pursuing career develop-
KRW 107.0 billion was extended to borrowers, and it helped reduce
ment or acquiring the skills to apply digital and information technol-
ing basis since the launch of Woori Bank Volunteer Group in July 2007.
the polarization in the financial sector. Meanwhile, Woori Bank began
ogy due to daunting private education costs. In 2020, vouchers for
Woori Bank has formed sisterhood ties with social welfare institutions
the “Special Program for Pre-Workout for Household Loans” on April
online classes on digital and information technology were provided
and children’s centers near its branch locations across the country, and
29, 2020 to support borrowers who have overdue loan repayments
to 100 specialized vocational high school students faced with con-
its executives and employees pay regular visits to volunteer and deliver
or are at such risk due to a decrease in income during the pandemic.
straints in capacity building and learning due to COVID-19. It entailed
donations throughout the year. In 2020, 758 volunteer sessions were
Vulnerable groups suffering financial hardships due to COVID-19 and
education in various aspects of digital and information technology,
carried out with the participation of a total of 7,004 members of the or-
borrowers with overdue payments were allowed to defer the payment
including but not limited to big data, information security, applica-
ganization to assist underprivileged neighbors in the local community.
of the principal (for 6 or 12 months), extend the loan period, renew the
tion programming interface (API), web development and artificial
Also, KRW 518 million was donated to social welfare institutions and
loan or switch to a different loan product. As of the end of 2020, a total
intelligence, and executives and employees from Woori FIS, which
children’s centers to assist vulnerable groups as well.
provides comprehensive ICT services within Woori Financial Group,
provided mentoring via live streaming videos to help students ex-
plore career paths and develop practical skills.
•••
of 77 such cases amounting to KRW 1,607 million were handled.
Support for Small Business Owners and SMEs•Woori Bank became
the first financial institution to initiate consulting services for SMEs
(SOHOs) in 2001. Today, financial experts including management
consultants, certified accountants and tax accountants at the Bank
provide SMEs and SOHOs with individually tailored consulting on
various aspects of managing a business, including accounting and
taxation. Special funding was provided to support innovative SMEs
and small business owners bearing the brunt of the coronavirus crisis
and facing hardships due to the economic downturn and crisis in their
respective industries in managing their businesses with stability and
creating jobs. A special funding agreement valued at KRW 40 billion
was signed with credit guarantee foundations across the country,
including the Korea Credit Guarantee Fund and the Korea Technology
Finance Corporation, through which KRW 2.3 trillion was extended as
guaranteed loans under special funding agreements with a guarantee
ratio of 100% and loans for the guarantee fees with the maximum
guarantee fee rate of 0.8% (0.4%, 2 years) to support innovative SMEs
Woori FIS staff mentoring students to nurture them into digital talents
New hires engaging in volunteer activities
and revitalize local economies.
040
041
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Support Programs to Overcome COVID-19•Woori Financial Group ini-
tiated a wide range of social contribution programs in an effort to over-
donation certificates and KRW 200 million donated by executives and
employees of the Group were provided to Seoul National University
come the COVID-19 crisis in 2020. In January 2020, KRW 100 million
Children’s Hospital. Going forward, Woori Financial Group will continue
worth of COVID-19 prevention kits, each consisting of masks, a hand
its blood drives with the participation of executives and employees as
sanitizer and a thermometer, was donated to welfare facilities helping
a way to give blood and share life.
children and seniors who are particular vulnerable to the virus. In Febru-
ary, KRW 200 million worth of infection control supplies was delivered
to shelters for children at high risk in the Daegu and Gyeongbuk re-
gions, which were COVID-19 hotspots at the time. In March, 6,000 food
kits and 1,000 bags of rice valued at KRW 300 million in total were pur-
chased from traditional markets and donated for children and seniors
in the Daegu and Gyeongbuk areas, which helped support vulnerable
groups and revitalize the local economy at the same time. KRW 200
million was donated to the Daegu Branch of Korean Red Cross to pro-
vide healthy meals to the healthcare professionals at major hospitals
in Daegu to help boost their immune systems and nourish their bodies
and souls. Wibee Cloud, a crowdfunding platform of Woori Investment
Bank, was utilized to carry out a donation project with the participation
Sharing with Vulnerable Groups on Holidays•Woori Financial Group
has been sharing with those in need during the Lunar New Year and
Chuseok holidays each year. In January 2020, some 300 new recruits
of Woori Financial Group made 3,000 Woori Hope Boxes consisting
of holiday food at the head office of Woori Bank and donated them to
senior welfare facilities around the country. In September, 2,000 food
kits were prepared and donated to some 40 senior welfare facilities
operating under the Comprehensive Support Center for the Elderly
Living Alone. Woori Financial Group will continue its charity activities in
an effort to fulfill its CSR and eliminate the blind spots in welfare.
SPREADING
THE MECENAT ACTIVITY
The 23rd Woori Bank Woori Art Competition•The Woori Bank Woori
Art Competition launched in 1995 celebrated its 23rd year in 2020. It
is an iconic social contribution program of Woori Bank in the arts and
cultural sector that is aimed at giving an opportunity for children and
youth to share their hopes and dreams. In the past 25 years, around
750,000 young artists participated in the competition, boasting a long
history and tradition, and unleashed their artistic potential. In 2020, the
preliminary and final rounds were held online for the first time, thereby
in the area that was destroyed by the massive wildfire in Goseong,
Gangwon-do Province, and it helped restore the natural environment
and allow children receive education surrounded by greenery.
Eoul Elementary School situated in the vicinity of Anseong training
center of Woori Financial Group was chosen as the second forestation
project site, and every step of the project, including planning, design
and forestation, was carried out based on the opinions collected from
students, teachers and staff as well as local residents. Woori Financial
Group will pursue social contribution programs in connection with ESG
management to promote coexistence between man and nature.
enabling young artists to continue fostering their dreams even in the
2021 Plans
midst of challenges brought upon by COVID-19.
PROTECTING
THE ENVIRONMENT
of Woori customers, with the aim of assisting those who have been hit
hard by COVID-19. Along with these activities, the Good Consumption
Woori Bank’s Charity Culture: Woori Love Fund•Woori Bank is known
for the Woori Love Fund, a charity program where executives and em-
Movement was launched to support small business owners and turn
ployees donate a portion of their paycheck each month. Created with
Environmental Protection Campaign to Coexist with Nature•Woori
Financial Group has been carrying out an environmental protection
the economic tide. Gift certificates valued at KRW 10 billion were pur-
voluntary participation in 2003, the fund amassed KRW 384 million
campaign throughout the year as part of the efforts to promote ESG
chased from traditional markets and given to employees, in an effort
in 2020 alone with contributions made by 5,524 members of the or-
management and environmentally conscious practices since 2019.
to support local merchants, and around 100 restaurants near the head
ganization a month, on average. The money collected is used toward
In 2020, all members of the Group engaged in eco-friendly practices,
office were prepaid for KRW 100 million worth of meals.
Blood Drive Campaign•Woori Financial Group carried out a blood
drive with the participation of executives and employees across the or-
ganization after becoming aware of the decline in blood donations due
to social distancing measures. The Blood Drive Campaign was con-
ducted for the 15th consecutive year in 2020 since the related agree-
ment was concluded with Korean Red Cross in 2006. Executives and
employees voluntarily visited the blood banks near the office or branch
during the month-long campaign period to donate blood as well as
the blood donation certificates. In October 2020, a total of 500 blood
assisting those in need, supporting volunteer groups of the bank and
holding contents to select excellent social welfare programs. Woori
Love Fund Contest Program, which has been in operation since 2009,
is aimed at selecting exceptional social welfare programs operated by
social welfare facilities to support marginalized classes. In 2020, KRW
such as using tumblers, refraining from the use of disposables and
saving energy. A donation drive was held to collect used toys from
executives and employees and donate them to the Seoul Green Toy
Library. Through these activities and more, Woori Financial Group is
leading the efforts to protect the environment and leave behind a clean
200 million was donated to twelve social welfare institutions and ten
and healthy planet for future generations.
children’s centers. A social media campaign was carried out to involve
customers of Woori Bank and its partners by having them leave com-
ments and like and share posts to show their support for underprivi-
leged children.
Woori Finance Forest of Life •Woori Financial Group held the com-
pletion ceremony for the second forest created as part of the Woori
Finance Forest of Life Project at Eoul Elementary School in Anseong,
One Click Funding System will be introduced on WON Banking services
Gyeonggi-do Province in December 2020. Initiated in 2019, the first for-
for customers to make donations in the event of a national disaster or
estation project was carried out at Inheung Elementary School located
emergency so as to facilitate speedy recovery with timely assistance.
Practicing Green Management and CSR Management
Woori Financial Group plans to establish ESG management processes
in 2021 to reinforce ESG management, in addition to strengthening its
CSR management by diversifying CSR channels and pursuing green
management. After joining global environmental initiatives to build a
climate change response system, the Group will come up with a long-
term roadmap to countering climate change and formulate specific
measures to achieve the intended objectives, such as building the
infrastructure for reduction of carbon emissions and carrying out cam-
paigns to raise environmental awareness among the employees.
In light of the recent trends related to the widespread use of digital
technology and the need to carry out social contribution activities while
maintaining social distancing, Woori Financial Group plans to introduce
digital CSR programs and discover and implement zero-contact CSR
activities. In the first half of 2021, small business owners suffering from
a sharp decline in sales due to the prolonged pandemic will be provided
with digital signage at Woori Bank branches across the country and dig-
ital ads on Woori WON Banking, a mobile banking app. To boost sales,
small businesses will be offered an opportunity to open shop on Wibee
Market, an online open market operated by Woori Card. In addition, the
Sharing Woori Hope Boxes for the Lunar New Year
Woori Financial Group’s blood drive
Woori Protects the Earth
Good Stores in Woori Neighborhood to support small business owners
042
043
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 BUSINESS
OPERATIONS
046
Woori Bank
072
Woori Card
074
Woori Financial Capital
076
Woori Investment Bank
078
Woori Asset Trust
080
Woori Asset Management
082
Woori Savings Bank
084
Woori Credit Information
086
Woori Fund Service
087
Woori Private Equity Asset Management
089
Woori Global Asset Management
091
Woori Finance Information System
092
Woori Finance Research Institute
044
045
Woori Bank
Woori
Bank
www.wooribank.com
Woori Bank has consistently spearheaded
bank-wide operations for digital transforma-
tion under a strategy that aims to lead digital
innovation and conducted digital-focused
organizational reshuffling to respond rapidly
to the changing market. Moreover, Woori
Bank intensified competencies to utilize dig-
ital technologies including AI, big data and
RPA as core values of a ‘customer-oriented
approach’ and ‘enterprise-wide productivity
innovation’ and transformed mobile banking
services.
The Banker Named Three
World's Best Banks
Retail Banking
Retail banking has undergone dramatic changes since the outbreak
Expansion of the Customer Base
of COVID-19. Along with a sharp decline in customers visiting banks
in person, there has been a surge in demand for mobile banking. Also,
with the expansion of asset markets, including equity investments
and real estate, and low interest rates, retail banking is expected to
fulfill its fundamental roles, such as ensuring convenient transac-
tions. Under these circumstances, the Retail Banking Business Group
The Retail Banking Business Group provided customers with benefits
through customer-oriented promotions. In January 2020, the launch
of a high-interest savings product called Woori Customers, Thank You
led to KRW 1 trillion in sales. Also, various marketing campaigns were
carried out with partners to consolidate the customer base. High-inter-
est rate installment savings products began to be offered in connec-
is effectively dealing with changes brought upon by COVID-19. It is
tion with Hyundai Card and Woori Card to attract customers looking to
providing a wide variety of products and services for retail customers,
generate interest income, while marketing campaigns targeting young
planning partnerships and marketing campaigns and focusing on the
children, youth, wage earners and others were carried out. As a result,
fundamentals of the retail banking business.
the monthly balance of the low-cost funding accounts of individual
customers was KRW 10.5 trillion higher compared to the end of the
previous year, thereby contributing to the improvement of profitability
2020 Performance
for the bank.
In 2020, Woori Bank provided its 23.8 million retail customers with dif-
ferentiated value and customer experience in the non-face-to-face era.
The Prime Power Loan (PPL) application process, for example, was
taken to the online platform for customers to file an application on-
line without having to visit in person. The campaign using Pinkfong
characters that are popular with young children was continued, while
the e-sports (League of Legends Championships Korea, LCK) spon-
sorship agreement from last year was renewed to attract Generation
MZ, which includes millennials and Gen Z, as part of the strategy to
consolidate the digital native customer base. In addition, the new and
improved Tablet Branch, WINI mini, and smart kiosks were used to
speed up the processes for a more convenient digital experience for
customers.
Efforts to Promote Non-Face-to-Face Banking
Through digital transformation, the product subscription process was
re-established to raise the competitiveness of flagship products. It is
now possible for customers to look up their maximum loan amount
and interest rate within just two minutes on the web, without the
need to install the WON Banking app. Woori WON Loan for Workers,
launched exclusively for the digital platform in March 2020, recorded a
balance of KRW 2.1 trillion by the end of the year, the success of which
was owed to the convenient process. Furthermore, the PPL program
was completely moved to the online platform to attract more prime
customers.
Total Loans of Retail Banking (Unit: KRW in trillions)
Total Deposits of Retail Banking (Unit: KRW in trillions)
Total Customers of Retail Banking (Unit: thousand customers)
131.6
121.0
109.4
100.5
YoY
+8.8%
YoY
+8.9%
23,835
23,507
YoY
+329
2019
2020
2019
2020
2019
2020
046
047
2020 Global Best BankAsia's Best BankKorea's Best BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 •••
Woori Bank & LCK’s partnership agreement ceremony
Renewal of the E-sports (LCK) Sponsorship Agreement
The Retail Banking Business Group became the first in the financial
industry to sponsor the League of Legends Championships Korea
(LCK) and has been sponsoring the international esports league for
two years since 2019. The ambassadors of 20-Year-Old Woori, a youth
brand of Woori Bank, achieved the effect of a KRW 180 billion ad cam-
paign over the course of two years, with the issuance of nearly 27,000
LCK cards. Based on Woori Bank’s industry know-how and strategies
to attract the avid fans of the LCK, a strong partnership was formed
with the organization and the contract was renewed until 2023. The
Retail Banking Business Group is actively communicating with Gen
MZ, making up the biggest portion of LCK viewers, by incorporating the
LCK into its marketing campaigns.
2021 Plans
Going forward, a wide range of strategies will be applied to gain more
retail customers amid fierce competition. An exclusive marketing
brand will be launched to attract prime customers among wage earn-
ers, while efforts will be made to appeal to Generation MZ who are
gaining stronger social and economic influences.
Further, the Retail Banking Business Group will seek to achieve digital
transformation (DX) of the product and service subscription and bank-
ing processes, through which low-cost funding accounts and prime as-
sets will be increased in a non-face-to-face manner in order to achieve
greater financial soundness.
COVID-19 Support Activity
• ATM Fee Reduction
- For individual customers & individual business owners in the Dae-
gu and Gyeongbuk areas (Mar. 6, 2020 to May 31, 2020)
•Pre-workout for household loans in the COVID-19 era
- For borrowers who have failed to make their loan payments
(or have concerns thereof) due to decreased income since the
outbreak of COVID-19 (Feb. 2020)
- Payment of the principal deferred (for 6 or 12 months), etc.
Corporate Banking
The Corporate Banking Business Group of Woori Bank, providing
Strengthening Relationships on an Ongoing Basis
services to corporate customers, including major domestic con-
glomerates (Samsung, LG, POSCO, etc.), has the largest number of
corporate group customers in Korea, as of late 2020. The branch
managers, who are corporate finance experts who have turned Woori
Bank into Korea’s top corporate banking service provider, and the
(corporate) finance center managers in charge of supporting the affil-
iates and business partners of corporate customers and overseeing
retail banking for their executives and employees, help meet various
financial needs of corporate customers in a timely manner. Woori
Bank prides itself on having provided corporate customers with
world-class financial services that helped them emerge as global
leaders over the past 122 years and is committed to using its know-
how to better serve new and existing corporate customers.
2020 Performance
In 2020, the Corporate Banking Business Group made achievements
befitting its status as the No.1 leader in corporate banking services by
providing top-notch financial services to corporate groups including
main debtor groups. Along with this, diverse financial needs were
discovered through the operation of Woori Diamond Club for CEOs of
large corporations, and efforts were made to strengthen relationships
with customers. In response to the growing emphasis on corporate
social responsibility, products aimed at developing win-win relation-
ships with enterprises were developed in an effort to promote coop-
eration. The Corporate Banking Business Group managing KRW 24.1
trillion in total assets, as of the end of 2020, generated KRW 679.2
billion in operating income.
With the corporate customers growing into global leaders, their finan-
cial needs are changing faster and more diverse than ever. To better
cater to such needs, Woori Bank has been operating Woori Diamond
Club since 2003. Woori Diamond Club, celebrating its 18th anniversary,
plays an important role in strengthening Woori Bank’s relationships
with its corporate customers and providing services tailored to the
financial needs of customers in a timely manner.
Supporting Win-Win Relationships with SMEs and Large
Corporations
Woori Bank offers a product package in which it enters into business
agreements with large corporations and offers to finance small- and
medium-sized enterprises (SMEs) at low interest rates. Through the
Sangsaeng Loan for Partners of Large Companies launched in 2008,
2,499 enterprises were provided with KRW 770.6 billion in loans, while
Woori Sangsaeng Partner Loan, a loan package for settlements devel-
oped in 2013, helped provide KRW 597.9 billion in loans to 7,576 en-
terprises, as of the end of 2020, through a system upgrade in 2015. As
the bank with the largest number of corporate group customers in Ko-
rea, Woori Bank contributes to the formation of win-win relationships
between large corporations and SMEs by reducing financial costs for
SMEs with its Sangsaeng (win-win relationship) System and extensive
client network.
2021 Plans
The Corporate Banking Business Group will strengthen its corporate
banking services under the slogan, “No.1 Corporate Banking Service
Provider Based on Total Marketing,” and implement the following strat-
Corporate Banking Total Assets of 2020
egies to achieve this objective:
KRW 24.1 trillion
First, it will diversify sources of revenue by developing new financial
products and markets and normalizing interest rates and fees to pur-
sue profit-generating businesses.
Second, it will pursue a balanced loan business by ensuring adequate
growth of conglomerate assets and managing related risks.
Third, it will implement the total marketing strategy by promoting
transactions among partners, executives and employees using its
conglomerate network.
048
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Woori BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
SME Banking
The Small and Medium Corporate Banking (SME Banking) Business
Group oversees financial services for SOHOs/SMEs/middle market
Leading Productive Finance through Support for Korean New
Deal and Innovation Finance
Providing COVID-19 Support and a Safety Net
for SOHOs and SMEs
Woori Bank provided KRW 8.2 trillion in investment and loan support for
the Korean New Deal and innovative financing support, thereby increas-
ing financial support for enterprises in the digital and environmental
sectors, enterprises with excellent technologies and Intellectual Prop-
Woori Bank provided prompt and practical assistance to SOHOs and
based on innovation and inclusive financing for SMEs. Through the
SMEs suffering from COVID-19 by providing some 170,000 applicants
agreements with government-funded financial institutions and devel-
with KRW 11 trillion in new funding, KRW 13 trillion in renewed loans
opment of financial services to SMEs, Woori Bank will boost profitabil-
and KRW 2 trillion in deferrals and interest exemptions amounting to a
ity, growth potential and soundness through systematic support for
erties (IPs) and enterprises creating jobs. There are plans to continually
total of KRW 26 trillion in value.
2021 Plans
In 2021, Woori Bank will be dedicated to achieving tangible growth
enterprises, handling a total of KRW 98.0 trillion in loans and KRW
61.5 trillion in deposits, as of the end of 2020, while ensuring custom-
er satisfaction. Rather than simply pursuing profits, it is dedicated to
practicing sustainable management with the aim of achieving mutual
growth with its customers, even amid various challenges such as
economic recession, a drop in the base interest rate and more. Woori
Bank is a leader in providing inclusive banking and productive banking
services, fulfilling its corporate social responsibility and contributing
to the national economy and local communities through financial as-
increase support based on inclusive and innovative financing through
the New Deal industry guarantee, funding from policy funds and pre-
liminary loan limit assignment, total marketing in connection with large
corporations and so on. Other than that, Woori Bank achieved a KRW 7.1
sistance to enterprises suffering financially due to COVID-19, financial
trillion increase in technical financing in 2020 alone by issuing technical
consulting to SOHOs, support for innovative enterprises and so on.
evaluation reports to innovative enterprises with leading technologies
2020 Performance
2020 was a year in which Woori Bank made qualitative and quantitative
achievements by offering full-fledged support to SOHOs and SMEs
through the COVID-19 financial assistance program and more. Com-
pared to 2020, loans increased by KRW 8.3 trillion (9.3% △), deposits by
KRW 7.8 trillion (7.4% △) and business customers by 100,000. Financial
soundness was substantially improved with the weight of prime assets
reaching 86.7% ( 2.5%p YoY increase).
Despite the continued drop in the base interest rate in the low growth
era, the profitability of loans was boosted thanks to efficient asset man-
of the Fourth Industrial Revolution in a prompt and systematic man-
ner based on an in-house evaluation system. In order to discover and
nurture enterprises with outstanding technologies, Woori Bank holds
a contest twice a year to select 20 enterprises to be funded KRW 1.0
billion each, in addition to operating a wide variety of direct and indirect
investment programs and programs that incorporate investment and
loans as forms of support. Plus, technology financing training is provid-
ed at all the branches each year to help employees acquire qualification
certificates as technology credit appraiser, as part of the efforts to dis-
cover and nurture exceptional financial experts.
Building Policy Funds and Offering Guaranteed Loans
agement, and as a result of providing more loans to SMEs in a prime
In line with the government policies, Woori Bank offered low-interest
asset and reducing non-performing assets, the default rate of SMEs
policy funds of KRW 2.3 trillion to SOHOs and SMEs in 2020. The pri-
mary and secondary loan programs for secondary preservation of the
interest rate and security on a letter of guarantee helped provide KRW
1 trillion at low interest rates as emergency liquidity programs. Other
than that, Woori Bank promoted policy funding with competitive inter-
est rates using on-lending arrangements with the Korea Development
Bank and the Export-Import Bank of Korea, along with C1/C2 funds
from the Bank of Korea. Moreover, KRW 39.4 billion was extended
based on agreements were concluded with the Korea Credit Guaran-
tee Fund, foundations and central and local governments, in addition
dropped 0.07%p from the end of the previous year to 0.28%.
Not only that, but the SME Banking Business Group provided KRW 26.0
trillion in financial assistance to around 170,000 borrowers affected by
COVID-19 in 2020 and extended KRW 7.3 trillion to enterprises with ex-
cellent technological prowess, including material, parts and equipment
manufacturers and innovative enterprises, thereby contributing to the
national economy and local development. In response to the govern-
ment policies, Woori Bank offered KRW 2.3 trillion in policy fund loans
to SOHOs and financially vulnerable groups and fulfilled its corporate
social responsibility through financial inclusion.
050
In addition, a debt readjustment program and a soft landing plan for
borrowers through payment deferrals were implemented to help cus-
new customers and follow-up management, in addition to increasing
financial support to innovative companies with outstanding technolo-
gies and enterprises that have been adversely affected by COVID-19.
tomers overcome the COVID-19 crisis. Woori Bank is providing total
With plans to upgrade its internal system in order to design custom-
financial solutions to customers through extraordinary support for
er-centric and customer-first financial schemes, Woori Bank will boost
business stabilization, support in connection with guarantee providers,
the competencies of the personnel overseeing services to SMEs
the operation of a customer service center for those with financial
and discover best practices to be disseminated throughout the orga-
difficulties. Also, there are five locations of Woori SOHO Support Cen-
nization. Furthermore, Woori Bank will leap forward to become the
ter providing online and offline consulting on business management,
No.1 bank by building the best-in-class customer-centric asset man-
including taxes, accounting, entrepreneurship and crisis management.
agement system and analyzing comments and feedback obtained
In 2020, there were 565 SOHO financial consulting cases, and there
through the Voice of the Customer (VOC) system to strengthen pro-
are plans to open new locations in four regions, Gwangju, Daegu, Dae-
tection for financial consumers and support customers in achieving
jeon and Seoul, 2021.
success.
No. of SOHO & SME Customers
1.76 million
Total SME loans in Won (Unit: KRW in trillions)
Prime Asset Ratio(SMEs) (Unit: %)
to providing guaranteed loans of KRW 2.3 trillion, which helped in-
76.6
82.1
crease prime assets and asset soundness.
91.1
86.7
83.3
84.3
YoY
+11.0%
2018
2019
2020
2018
2019
2020
YoY
+2.4%p
051
Woori BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Institutional Banking
Digital Banking
The Institutional Banking Business Group consists of the Institutional
Providing Optimal Financial Solutions to the Government and
With the rapid digitization of financial services due to the Fourth
& Public Fund Customer Department, which caters to the needs of
Public Institutions
the central and local governments, courts and public institutions, and
the National Pension Department dedicated to providing financial
services to the National Pension Service (NPS), one of the three larg-
est pension funds in the world, and other domestic pension funds.
Woori Bank assigns competent professionals to the Institutional
Public Fund & Customer Department to effectively support the govern-
ment and policy institutions in policy and project implementation by
providing optimal financial solutions for the execution of public proj-
The Institutional Banking Business Group became the first in the
ects. Selected as the primary banking partner for the Korea Institute of
Korean banking sector to establish a pool of institutional banking
Science and Technology (KIST), Korea Medical Device Development
specialists for institutional relationship management (RM) to provide
Fund (KMDF) and others in 2020, Woori Bank worked toward the suc-
first-class financial services to institutional customers. As of 2020,
cess of the new growth policies of the government. With a differentiat-
Woori Bank serves a number of institutional customers including
ed fund management system, Woori Bank was chosen as the foreign
the Ministry of Land, Infrastructure and Transport (MOLIT), Korea
Post, NPS, Korea Land & Housing Corporation (LH), Korea Railroad
Corporation (KORAIL) and Korea Exchange (KRX) and managing the
exchange service provider by the Korean Teachers’ Credit Union and
has been playing a critical role in its business operations ever since.
coffers of the Seoul Metropolitan City and 20 district offices of Seoul.
Maximizing Synergy While Serving Institutional Customers
Industrial Revolution, COVID-19 pandemic and other factors, digital
competency has become a critical factor in determining the surviv-
ability and competitiveness of a bank. Woori Bank has been imple-
menting a streamlined strategy to achieve Digital Transformation
(DT) with the aim of leading digital innovation and even restructured
its organization for digital readiness to boost its executive power
and make agile responses to the changes in the market. In addition,
Woori Bank further strengthened its capacity to generate income by
honing its competitive edge in finance using new digital technology
and proactively responded to changes in the financial environment
by forming more partnerships and creating innovative businesses.
Going forward, it will consolidate its position as a digital leader in the
banking sector by doing away with outdated practices and bolstering
its execution power, with the aim of ‘Incorporating the Digital DNA’
into its business methods, work environment and organizational cul-
As such, Woori Bank has consolidated its position as the bank with
the largest number of public institution clients in Korea.
2020 Performance
Woori Bank broadened its services for government agencies, local
governments and major public institutions and built a reputation as
a financial institution working for the people through diverse social
contribution activities in local communities. Since March 2018, it has
been serving as the primary bank of the NPS, one of the world’s three
biggest pension funds, managing around KRW 830 trillion in funds. In
2020, Woori Bank provided institutional banking services as the prima-
ry bank to 102 out of 340 public institutions designated by the Ministry
of Economy and Finance, and it maintained banking relations with
around 5,000 institutions, with loans and deposits amounting to a total
of KRW 31.2 trillion.
Total Deposits (Unit: KRW in trillions)
31.2
31.7
30.6
2018
2019
2020
052
The Institutional Banking Business Group not only provides financial
ture to accelerate the bank-wide DT.
services directly to institutional customers but also discovers and
delivers opportunities for SMEs and individuals to become involved in
projects initiated by institutions. As one of the key businesses in 2020,
2020 Performance
Woori Bank provided comprehensive financial services for companies
Boosting Digital-Based Operations and Increasing Business
and so on.
that have been successful in R&D, while managing and executing R&D
Coverage
funds for system operations and beyond, as the bank designated to
handle the research and development (R&D) funds for the Ezbaro
program of the Ministry of Science and ICT. Furthermore, the group
has laid the groundwork to attract and support promising exporters
through the export voucher program management system supervised
by the Korea Trade-Investment Promotion Agency (KOTRA).
Clients among local governments
In December 2020, the "Corporate Woori WON Banking" was made
In 2020, Woori Bank established objectives for non-face-to-face chan-
available. Prior to the re-launch, the would-be users were interviewed
nels to boost digital-based operations and improved digital perfor-
and user tests were carried out for a couple of months to clearly
mance indicators and developed Business Internet Banking (BIB) prod-
identify the needs of corporate customers. Based on the results, the
ucts. Digital marketing carried out in connection with branches was
main channels, including corporate banking and notification app, were
modified as an indicator to assess the digital performance of the bank
renewed. The renewed mobile app offering a personalized main page
as one of its main businesses, and products in line with the current
and new services befitting the mobile platform, such as a non-face-
market trends were launched to strengthen competitiveness. Through
to-face loan service, helped raise the efficiency in serving corporate
partnerships with external entities, channels have been created to
customers.
attract new customers and funds. In July 2020, Woori began imple-
Seoul Metropolitan City, 20 gu offices in Seoul and Gwangmyeong City
menting the mobile take-a-number system on a wider scale in partner-
Clients among government and public agencies
ship with Naver, which helped create an environment for collaborating
with FinTech companies and developing digital business models with
promising companies. Additionally, digitization of corporate financial
Ministry of Land, Infrastructure and Transport, Korea Post, National
services and other business areas unique to the banking industry was
Pension Service, National Health Insurance Service, Korea Housing
pursued to discover digital business opportunities across the banking
Finance Corporation, Korea Land & Housing Corporation, Korea Hous-
business.
ing & Urban Guarantee Corporation, Seoul Housing and Communities
Corporation, Korea Railroad Corporation, Korea Exchange, Korea Se-
curities Depository, Korea Public Finance Information Service, Korea
Institute of Startup & Entrepreneurship Development, Korea Inclusive
Finance Agency, Agency for Defense Development, etc.
The launch of Corporate Woori WON Banking, following the launch of
Woori WON Banking for individual customers in 2019, helped Woori
Bank take a step closer to completing its digital financial platform.
Keeping in pace with the trend of growing importance of non-face-to-
face channels in the financial industry, Woori Bank will continually de-
velop WON Banking services as the representative marketing platform
of Woori Financial Group by offering convenient and personalized
services.
053
•••
"Corporate Woori WON Banking" service usage guide video
Video link
A System for Constantly Advancing Digital Channels
In 2020, Woori Bank made two major updates in reflection of user
requests for improvement through the operation of the WON Banking
Innovation Task Force and set up a system for constantly advancing
digital channels by reflecting customer feedback, upgrading the UX/UI
Woori BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Part 3. Financial Innovation and Bank-wide DT
Number of People Using Woori’s Digital Platform
Woori Bank is continually reinforcing its digital market monitoring
(as of December 31, 2020)
system and pursuing new businesses to be prepared for innovative
financial policies and market trends. In August 2020, Woori Bank was
chosen for a priority review for the MyData Project in recognition of
its readiness and acquired a preliminary approval in December, after
which it has been discovering innovative business models. In order
5.03 million users
to explore new business opportunities from various angles and fulfill
* The sum of digital platform users of Woori WON Banking and
its role as a project partner, Woori Bank newly established the DT
ACT(Agile Core Team)in July 2020 to actively support the discovery of
potential projects to collaborate on for the Group. Furthermore, efforts
are being made to spread digital innovation across the bank through
reverse mentoring to executives and communication channels for
collaboration on DT, in addition to promoting collaboration and agile
operations and pursuing change management at the head office.
2021 Plans
In 2021, it is expected that the competition with FinTech and BigTech
companies will become fiercer than ever, as non-financial companies
enter the market with increase ease thanks to the growing demand for
non-traditional banking channels and changes in related regulations.
DT will also be driven by the digital financial innovation policy of the
government through the implementation of the open banking and
MyData projects and approval of comprehensive payment and settle-
ment businesses.
Based on this forecast, Woori Bank plans to be prepared for the digital
Corporate Woori WON Banking
Digital First,
Change Everything
financial market based on its ‘Digital First, Digital Initiative’ policies
Digital Slogan
and by pursuing Digital Transformation across the organization. First,
digital innovation will be pursued through self-core of the Group for the
purpose of seeking digital transformation of all its business operations
and achieving digital business performance. Also, efforts will be made
to increase digital business coverage by revamping its zero-contact
financial services for corporate customers and personal financial
management (PFM) services, which are areas where the Group has
a competitive advantage against FinTech and BigTech companies.
Plus, Woori Bank will respond to the shift toward digital-based finan-
cial consumption patterns, restructure its asset management system,
expand its open banking services and open key financial services,
such as MyData/PFM and MyPayment, in a step-by-step manner for
improved customer experiences. By introducing collaboration tools for
efficient management of development procedures and analyzing and
eliminating obstacles causing delays in DT, Woori Bank will improve its
corporate culture and re-orient its operations for efficient execution.
054
Investment Banking
Woori Bank’s Investment Banking Business Group consists of three
Finance Team, the first of its kind to be established by a Korean com-
departments: the Investment Finance Department, the Project Finance
mercial bank at the end of 2018. It has also hosted six competitions,
Department and the Global IB Finance Department. There are a total
as of late 2020, executing a total of 55 direct investments in innovative
of 12 teams: the CIB Team, M&A teams 1 and 2, Equity Investment
growth companies.
teams 1 and 2 and Innovative Growth and Finance Team under the In-
vestment Finance Department; the Infrastructure Finance Team, Struc-
tured Finance Team, Power and Energy Team and Real Estate Finance
teams 1 and 2 under the Project Finance Department; and the Aircraft
and Ship Financing Team, Global Syndication Team and Global PF
Team under the Global IB Finance Department. With increasing impor-
tance placed on the IB business of banks, Woori Bank has expanded
its core IB business also in the fields of blue-chip equity investments
and M&A finance, power generation and infrastructure arrangements,
while broadening the business scope through its global network and IB
desks. In October 2006, Woori Bank established Woori Global Markets
Asia Ltd. in Hong Kong, becoming Korea’s first financial institution to
set up an overseas business unit with focus on international IB. As of
2020, Woori Bank has global IB desks running in New York, London,
Germany, Singapore, Sydney, Vietnam, and Dubai, through which inter-
national IB opportunities are being created on an ongoing manner.
2020 Performance
2021 Plans
The IB Group will strive to achieve further growth in 2021, as one of
the most crucial business area of the organization creating synergistic
effects within the holding company, based on the efforts it has made
over the past two years since the founding of Woori Financial Hold-
ings in 2019. With the primary objective of ‘Leapfrogging into a Global
IB Group by Building an Innovative Profit Structure,’ the group plans
to ‘build a foundation for sustainable growth’ and ‘optimize assets to
maximize profits.’ In response to the growing volatility in capital mar-
kets across the world, efforts will be made to set up swift and efficient
asset management processes and systems. Last but not least, the
group will continually endeavor to create synergy with the affiliates
under Woori Financial Holdings, including Woori Financial Capital
(formerly, Aju Capital) acquired in 2020, by solidifying cooperative re-
lations. In addition, the group will further strengthen the CIB business
based on collaboration with major shareholders in securities, insur-
ance and asset management as well as with other business groups
within the bank, while seeking ways to raise synergy with the affiliates
In 2020, the IB Group generated higher non-interest income by boost-
of the holdings company, including securities, insurance and VC firms.
ing financial arrangements and making aggressive principal invest-
ments (PIs) in power generation, infrastructure and real estate projects
as well as M&A finance, and new global IB desks were additionally set
up, promoting international business expansion. With a competitive
advantage in M&A finance and equity investment markets, Woori Bank
outperformed its competitors in non-interest income and operating
income per person. It has also been achieving remarkable growth in
global IB assets and gains by managing seven global IB desks, the
largest number among commercial banks in Korea, which in turn
enabled the IB Group to generate an operating income of more than
KRW 500 billion in 2020.
It also increased high-yield investments through close ties with global
top-tier asset management companies, provided aircraft financing,
participated in overseas infrastructure and power generation projects,
broadened structured finance and issued FRNs in connection with
its IB subsidiary in Hong Kong, thereby maximizing short-term prof-
its while preemptively making investments for future growth. The IB
Group has been contributing to the creation of a financial ecosystem
to promote innovative growth as envisioned by the government and
investing in innovative enterprises through the Innovative Growth and
Total Assets of Investment Banking Operations in 2020
(Unit: KRW trillion)
Off-balance Sheet Assets
8.0(47.3%)
Loan Commitments
7.5(44.4%)
Balance Sheet Assets
8.9(52.7%)
Loans
4.1(24.3%)
Total Assets
(100%)
Securities
4.8(28.4%)
Payment Guarantees
0.5(2.9%)
055
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 2021 Plans
In 2021, the Financial Market Business Group will successfully mini-
mize fluctuations in funds by effectively managing liquidity indicators,
such as the LDR, LCR and NSFR, even amid the challenges posed by
the prolonged COVID-19 pandemic and preemptively managing liquidi-
ty in preparation against regulatory tightening. In addition to managing
liquidity across the bank by boosting retail deposits, issuing market-
able CDs and securing committed lines, the group will raise profitability
through the reinforced control of capital-raising management portfo-
lio. In trading, the group will broaden both its F/X and derivatives income
by diversifying strategies such as arbitrage in F/X and derivatives trading
and foreign currency and interest rate hedging. Based on the expecta-
tions of rising volatility across the globe driving up the demand for risk
hedging, the group will continue to broaden F/X and derivatives trading
by offering the right product at the right time for all customers. Also, a
team of experts dedicated to serving investors among securities firms,
insurers, government agencies and other financial and public institutions
will attract new prime customers and help raise non-interest income.
Financial Market Business
The Financial Market Business Group consists of the Treasury De-
Stable Management of Liquidity
partment managing Woori Bank’s funds and liquidity; the Trading
Department in charge of business operations concerning financial
derivatives; the Securities Management Department managing
marketable securities; and the, which performs back office duties.
In particular, Woori Bank is a leader among all domestic commercial
banks in trading derivatives in relation to handling forwards, swaps
and options based on the interest rates, foreign exchange, equities
and other underlying assets.
2020 Performance
Successfully Responding to the New LDR Rule•In preparation for the
new LDR rule introduced in 2020 to apply a different weight to loans
according to the borrower, the group preemptively increased deposits
and restructured its capital-raising structure by issuing marketable
CDs and covered bonds. As a result, Woori Bank recorded an LDR of
99.1%, as of December 2020, attesting to its successful response to
Complying with Korean Regulatory Guidelines•In 2020, the LCR,
foreign currency LCR, NSFR and mid- and long-term foreign currency
financing ratio were kept in line with the regulatory standards based on
preemptive capital-raising activities and liquidity management.
Reinforcing Competitiveness in the F/X and Derivatives Busi-
ness •In 2020, the Financial Market Business Group made an effort
to strengthen its competitiveness by creating new sources of income
the newly introduced rule.
and promptly responding to market volatility.
Issuing CoCos in Korean Won •The Financial Market Business Group
established preemptive financing plans and launched active IR efforts,
F/X Dealing •In F/X dealing, the group sharpened its currency fore-
casting capabilities by analyzing both domestic and overseas F/
thereby issuing CoCos in KRW amounting to KRW 600 billion at an all-
X markets and obtained remarkable gains on F/X trading by taking
As a key player in obtaining and managing funds for Woori Bank, the
time low interest rate (March, 1.94%) to attract investors of a prime asset
anticipatory and proactive action in response to the fluctuations in
Financial Market Business Group focused on improving profitability in
and better compete in the market. Through these efforts, Woori Bank
international financial markets. With high shares (6.8% in USD/KRW
2020 by managing liquidity and boosting efficiency in raising and man-
was able to create a strong foundation for stable business operations.
exchange, 12.67% in CNY/KRW exchange) of the Seoul F/X market
aging capital. The group contributed to enhancing profitability by main-
taining an optimal Loan-to-Deposit Ratio (LDR), diversifying ways to
obtain funds and downsizing short-term assets. It also improved the
public image of Woori Financial Holdings and Woori Bank by improv-
ing capital adequacy and capital-raising practices by issuing contin-
gent capital securities denominated in KRW and sustainability bonds
denominated in KRW and other currencies. As a result, the group was
able to keep the Liquidity Coverage Ratio (LCR, minimum 100% from
January to March and minimum 85% in April and onward), foreign cur-
rency LCR (minimum 100% from January to March and minimum70%
in April and onward), NSFR (minimum 100%) and the mid and long-
term foreign currency financing ratio (minimum 100%) in compliance
with the liquidity requirements set forth by the financial supervisory
authorities of Korea. The Financial Market Business Group strength-
ened its competitiveness in F/X and derivatives trading by diversifying
traded currencies and proactively managing its positions. It also ran
night-time equity derivative desks to respond to market risks arising
from changes in markets across the world.
Fulfilling CSR by Issuing Sustainability Bonds•The issuance of sus-
tainability bonds (KRW 750 billion and USD 300 million) to meet the
growing demands among domestic and foreign investors to use the
funds toward environmental or social contribution purposes helped im-
recorded in 2020, Woori Bank is playing the role of a leading Market
Maker in Korea.
Derivatives •In the derivatives market, the group predicted the trend
of market variables related to Korean and international financial poli-
prove the public image of Woori Bank as a financial institution that ful-
cies and fluctuations in supply and demand, thus managing positions
fills its Corporate Social Responsibility (CSR) and cut financing costs.
ahead of time and establishing a secure foundation for derivatives
trading. The group also offered consulting services on F/X and interest
rate risk management and customized solutions for SMEs that were
Issued Sustainability Bonds in 2020
lacking experience and knowhow in risk management.
KRW 750 billion
USD 300 million
Securities•As for securities, the group analyzed monetary policies
and bond markets at home and abroad to better manage bonds and
increase interest and non-interest incomes. It also diversified its sourc-
es of non-interest income by varying and increasing bond lending
transactions for which risk-free commissions are paid.
FX Market Share (Leading market maker in Korea)
LCR (Liquidity Coverage Ratio) KRW (Unit: %)
LCR (Liquidity Coverage Ratio) Foreign Currency (Unit: %)
104.5
100.0
93.5
92.1
114.4
108.9
106.1
115.0
20.1Q
20.2Q
20.3Q
20.4Q
20.1Q
20.2Q
20.3Q
20.4Q
USD/KRW 6.8%
CNY/KRW 14.2%
056
057
Woori BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Real Estate Finance
Investment Product Strategy Group
Woori Bank renamed the Housing Finance Division as the Real Estate
2021 Plans
Investment products, accounting for a significant portion of the
Investment Funds
Finance Business Unit in 2013, with the aim of managing real estate
financing more systematically and professionally. It is also managing
the National Housing and Urban Fund (NHUF) of the Ministry of Land,
Infrastructure and Transport (MOLIT) as a custodian. Accordingly, it
is offering NHUF products that are available to the low-income class,
in addition to the conventional banking products, thereby satisfying
diverse customer needs.
2020 Performance
In 2020, the Real Estate Finance Business Group Unit of Woori Bank
recorded the second biggest share of the mortgage market and the big-
gest share of the NHUF market. The Real Estate Finance Business Unit
not only eased the burden arising from loan repayments by actively par-
taking in the government’s efforts to provide financial assistance to vul-
nerable groups but has also been leading the domestic housing finance
market by proactively responding to the changes in the market driven by
government policies. In recognition of its track record in providing a wide
range of housing finance products as a custodian of the NHUF in the
past decade, Woori Bank was ranked as the No.1 custodian of the NHUF
in 2020.
Expanding the Customer Base as a Custodian of the NHUF
The NHUF is a crucial program in broadening financing options for
prospective home buyers and renters, including vulnerable groups.
As a custodian of the NHUF, Woori Bank plays a leading role in raising
funds and executing the budget. After it was re-selected as a custo-
dian in 2018, it continued provided a wide range of housing finance
products and recorded a 37.3% share of the demand-side housing
subscription loan market and a 24.4% share of the housing subscrip-
tion savings market in 2020. More than 920,000 people signed up for
a housing subscription savings account in 2020, with the dream of
purchasing their first homes. Going forward, Woori Bank will pave the
foundation to offer NHUF products to many more customers.
Upgrading the Real Estate Information Platform as a Non-
Face-to-Face Channel
The Real Estate Finance Business Unit made an effort to deal with
changes in the financial sector and provide customers with useful
real estate information. By launching WONTHELAND, a platform for
providing real estate and financial product information, it is serving as
a leader in providing customers with real estate information via a non-
face-to-face communication channel with improved convenience.
058
In 2021, Woori Bank will strive to maintain dominance over the NHUF
market, with the biggest market share, develop various other non-face-
to-face channels and diversify NHUF product subscription channels in
partnership with TechFin companies (Kakao, Naver, etc.). In addition to
improving customer convenience as a custodian of the NHUF, Woori
Bank will concentrate its efforts to obtain new customers for the de-
bank’s non-interest income, is one of the important scales for gaug-
ing the business competitiveness of a financial institution. The Invest-
ment Product Strategy Group established in July 2020 is comprised
of the Investment Product Strategy Department in charge of invest-
ment product strategies, the Affiliation Product Department responsi-
ble for fund and bancassurance products and the Trust Department
mand-side housing subscription loans, such as Jeonse (Key Money)
in charge of trust products to ensure streamlined implementation
Deposits, Monthly Rental Loan Plans and the Beotimmok (Support)
of investment strategies and timely launch of investment products.
Jeonse Deposit Loan Plan, recording a skyrocketing demand, as well
The group is committed to broadening its investment product lineup
as housing subscription savings accounts. Also, using its knowhow
under well-organized strategies and sophisticating its complete sales
and experience in raising and managing funds and its differentiated
processes to offer investment products that are geared toward sus-
computerized system, Woori Bank will operate a taskforce to be re-se-
tainable growth.
lected as a custodian of the NHUF in 2023. Efforts will also be made
toward supporting the housing welfare programs and promoting and
improving national housing. Furthermore, Woori Bank will provide
2020 Performance
financial assistance for prospective home buyers to contribute to the
government’s efforts to provide housing finance to ordinary citizens
and create an asset portfolio designed to achieve balanced asset
growth and optimal profitability, while taking minimal risk. .
For the purpose of solidifying the foundation for the investment
product business, the Investment Product Strategy Group continually
strengthened its research capabilities, broadened its investment prod-
uct lineup and pursued digital transformation of investment products.
Amid the growing market uncertainty due to the spread of COVID-19,
the group implemented the strategy of increasing non-face-to-face
customer touchpoints and gained customer trust in the investment
products offered by Woori Bank.
Investment Product Strategies
Woori Bank launches a wide array of investment fund products based
on sales brokerage agreements signed with leading asset manage-
ment firms. The Affiliate Product Department, in particular, does not
just sell investment fund products but provide financial services,
including analytical data on domestic and overseas equity and cap-
ital markets, for customers to gain a better understanding of such
products and make well-informed investment decisions. In 2020, the
focus was placed on establishing a complete sales procedure, which
involves providing full explanations and delivering crucial documents,
for investment fund products and gain customer trust.
Also, by ensuring rigorous product selection and follow-up man-
agement procedures, an effective and stable product management
system was created to sell mainly products offered by asset man-
agement companies with proven track records. Fund products in line
with market trends that are easy to understand for customers were
launched in a timely manner to promptly respond to changes in the
market. A non-face-to-face consultation channel was created to offer
consultation on fund products on a video conferencing platform in
response to the COVID-19 restrictions.
Bancassurance
As a leader in the bancassurance market since its introduction in 2003,
Woori Bank has been offering a wide variety of insurance products in
partnership with some 30 insurance companies. In 2020, special pro-
motion products with fixed interest rates and products with excellent
Demand-side Housing
Subscription Loans
No.1
The Investment Product Strategy Department is responsible for es-
posted interest rates were launched to maximize gains for customers,
tablishing streamlined investment strategies through the Investment
in addition to the introduction of guaranteed-type products to meet
Strategy Team formed by integrating multiple analyst groups handling
customer needs.
(37.3%)Market Share
Performance 397,438
Housing
Subscription Saving
No.1
(24.4%)Market Share
Performance 6,082,797
different funds and trust products into one. A comprehensive invest-
ment product strategy system, encompassing funds, trusts and ban-
cassurance products, has been created through the Product Strategy
Team as well. In order to formulate strategies based on market out-
looks from diverse perspectives provided from the frontline, the group
offers research data, including house views from Woori Bank and a
number of prominent securities firms, through comprehensive busi-
ness agreements. Woori Wealth Live, a web seminar for customers,
was held to prevent gaps in customer services even in the midst of a
pandemic.
Woori Wealth Live
•••
Video link
059
Woori BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Wealth Management
Trusts
Investment Funds
The Wealth Management(WM) Group is comprised of 3 departments
Expansion of the Sales Base for Wealth Management
The Trust Department offered diverse trust products to meet cus-
In 2021, a universe of key investment fund products will be created
tomer needs in relation to investment products in the midst of rapidly
based on market reviews and investor propensity analysis. Key prod-
changing market situation. Consistent sales of Money Market Trust
ucts will be chosen among the ones enabling portfolio investment and
(MMT) products, in particular, contributed a substantial portion of
boosting returns for customers, while taking into consideration the
(WM Strategy Department, PB Customer Department, and Pension
Department) and 12 teams that are responsible for overseeing the
wealth management businesses of Woori Bank, including Private
Banking (PB).
Woori Bank’s non-interest income.
government’s policy direction, market currents, latest trends and more.
The WM Strategy Department oversees asset management bank-
In 2020, improvements were made across the system with the aim
Plus, an asset management system will be introduced so as to provide
of establishing a complete sales procedure for trust products. As part
support for customers in selecting products and managing the return
of such efforts, restrictions were placed against ELT sales channels
on investment in addition to recommending suitable products.
wide and sales strategies targeting PB customers. It is in charge of
financial performance management and institutional improvements,
in addition to managing and carrying out new businesses and mar-
In October 2020, a TCE Center was newly established as a channel ded-
icated to Ultra-High-Net-Worth Individuals (UHNWIs). By operating this
channel, it has become possible to provide PCIB* services to UHNWIs
and improve the professionalism of wealth management services. Also,
based on a one-stop service model, the TCE Center offers outstanding
financial solutions tailored to individual customer needs, such as asset
management consulting, global investment support, and accounting/
legal services.
keting activities. It also sets forth non-face-to-face asset manage-
* PCIB : A business model consisting of three services, PB(Private Banking)+CB(Corporate Banking +
and subscriptions to products with a higher risk than what the inves-
tor is willing to accept. Also, customers subscribing to money trusts
via a non-face-to-face channel were provided with material informa-
Bancassurance
tion through a video call. Key products, including ELT, ETF, MMT and
The Affiliate Product Department plans to increase its offerings of ban-
fixed-income trust products as well as the Senior Plus Woori Secure
cassurance products tailored to customer needs and strengthen its
ment strategies and operates and manages related systems. The
PB Customer Department is dedicated to fostering professionals in
asset management and operating and managing asset management
channels. Also, it provides asset management services, including fi-
Trust, a living trust, underwent renewals for a relaunch and KRX Gold
competitiveness through non-face-to-face channels in 2021. Guaran-
nancial planning and taxation and real estate consulting, to High-Net-
Trust and hybrid bond were newly launched to expand the product
teed-type insurance products and pension insurance products, in addi-
Worth Individuals (HNWIs).
IB(Investment Banking)
Growth of Retirement Pension Business
Woori Bank pursued customer-oriented services in order to better re-
spond to the rapid changes in the labor market and to help customers
be financial stable after retirement. It continually provided pension-re-
lineup.
2021 Plans
The Investment Product Strategy Group has chosen the Establishment
of Streamlined Investment Product Strategies, Ongoing Provision of
Customer-Oriented Investment Products and Field-Oriented Business
Support as its core project for the year 2021.
tion to savings-type insurance products, will be continually launched to
diversify the product portfolio, and some of the products will be made
exclusively available via non-face-to-face channels to improve accessi-
bility.
Trusts
The Pension Department oversees the sales strategies for retirement
lated information, such as key issues and trends and asset manage-
pensions and supports the development and marketing of related
ment data, and managed pension assets through the Pension Asset
products and services. It also supports business operations concern-
Management Center. As a result, the pension AUM increased KRW 2.7
ing retirement pensions such as education and yield management.
trillion YoY to KRW 22.2 trillion in 2020. Customers were provided with
In addition, the Customer Care Center Team is in operation directly
under the Wealth Management Group. The team has various respon-
improved convenience by expanding the scope of non-face-to-face IRP
services, and the target date fund (TDF) lineup was expanded to boost
returns for customers.
In 2021, the Trust Department will offer more diverse trust products,
sibilities aimed at protecting investors, such as managing yields for
including living trusts and gift in trust products, after establishing the
customers, inspecting the sale processes for investment products,
Investment Product Strategies
New Trust Team staffed with legal and tax experts to strengthen its
checking for incomplete sales, and monitoring and analyzing risks.
Ensuring Complete Sales and Strengthening Risk Management
In 2021, there are plans to build a system allowing close cooperation
with the production departments to launch investment products in line
competitiveness in the trust business in the long run. There are also
plans to expand the lineup of ELT, ETF and other major products and
bolster the business in property in trust through business agreements
with the latest trends and customer needs identified through thorough
within the Group.
market research and to provide rebalancing guides based on ongoing
product analysis and reviews even after the product launches. More-
over, an AI-based market forecasting system will be utilized to offer
house views containing market analysis, asset allocation and product
evaluation information and research data, such as asset allocation
strategies, from experts.
Establishment of Streamlined
Investment Product Strategies
2020 Performance
As of the end of 2020, Woori Bank has 682 wealth management
branches, of which there are one Two Chairs Exclusive (TCE) Center
and five Two Chairs Premium (TCP) centers, which providing services
specifically to HNWIs. There are 694 Private Bankers (PBs) and Finan-
cial Advisors (FAs), who specialize in wealth management, and PB
customers, in particular, are provided with wealth management ser-
vices of the highest standard through a PB brand called ‘Two Chairs.’
CORE
PROJECT
for 2021
Ongoing Provision of Custom-
er-Oriented Investment Products
Expansion of the Customer Base
Field-Oriented Business Support
The core part of the wealth management business is PB customers.
As of the end of December 2020, Woori Bank has 232,329 PB custom-
ers. This is the result of carrying out a wide range of business support
and marketing activities to attract new customers and prevent cus-
tomer attrition.
Systems related to complete sales and customer-centric business oper-
ations were completely revamped. By requiring the use of the electronic
document system and creating a checklist for each step of the product
subscription procedure, it was possible to lower the chance of missing
documents and set up a complete sales process.
Plus, risk management was reinforced by applying differentiated ap-
proval processes according to the amount contributed to the product
concerned. Also, risks associated with financial instrument providers
were eliminated in advance by disallowing launches of substandard
products or terminating related contracts based on risk assessments.
Number of PB customers in 2020
232,329Customers
060
061
Woori BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Compliance Management
Woori Bank has established the Woori Code of Conduct and Stan-
Programs for Practicing Ethical Management
dards of Conduct, which sets the standards for the way its executives
and employees perform their day-to-day responsibilities and raises
awareness of the importance of ethical management and fulfillment
of corporate social responsibility for survival and sustainable devel-
opment in the era of global competition. By providing reliable finan-
cial services through the Woori Code of Conduct, Woori Bank strives
Woori Bank has a number of programs in place to promote ethical
management. The first being the Woori Hotline, through which a viola-
tion of the Code of Conduct committed by an executive or employee
can be report. It is a channel for executives and employees, partners
and other stakeholders to report on various irregularities and violations
of ethical management standards, aimed at encouraging compliance
to fulfill its responsibility to all stakeholders, including customers,
with the laws, regulations and the Code of Ethics.
shareholders, executives and employees, the nation and society, and
contribute to social development.
Second, the Ethical Management Support Council serves to propa-
gate the concept of ethical management and compliance across the
2021 Plans
Woori Bank plans to run a wide range of ethical training and legal com-
Last but not least, Woori Bank plans to serve as a great example, both
pliance programs to promote transparency and ethical management
internally and externally, through its ethical management activities
across the organization and make various system improvements
and publish a new guidebook on the Code of Ethics to be used as an
to minimize legal risks, as part of compliance management. A new
education material designed to promote compliance and a sound
regulatory management system, with improved user convenience in
workplace culture. These efforts in turn will allow executives and em-
searching for regulations and so on, and a new legal portal system for
ployees to gain a deeper understanding of ethical management and
prompt and accurate legal support will be introduced.
practice it in their day-to-day activities.
A comprehensive legal guide will be provided on common cases oc-
In 2021, Woori Bank will “innovate today [to] create tomorrow” with an
curring at customer touchpoints so as to provide answers to recurring
understanding of the importance of ethical management.
questions about identical or similar legal matters that may arise during
business activities and to prevent legal violations by raising awareness
of the importance of legal compliance.
By practicing ethical management, Woori Bank works to prevent
organization. The Council, chaired by the Compliance Officer, meets
Ethical Management Practice Program
non-ethical corporate practices and build morality among members
biannually to discuss and decide on policies related to ethical manage-
of the organization, in addition to engaging in fair competition in ad-
ment, including measures to practice the Code of Ethics and ways to
herence to the law and fundamental principles based on compliance
improve ethical management.
management.
2020 Performance
Third, members are advised to report any compensations they re-
ceived for external activities and encouraged to contribute to charities.
Executives and employees are required to report any payments they
received for services they rendered, such as giving a lecture and teach-
Reinforcing Ethical and Compliance Training
ing class, as well as any allowances, such as transportation expenses
In 2020, Woori Bank carried out various ethical and compliance train-
ing programs for all its employees to understand and practice ethical
management.
First, in order to raise awareness of ethical management among its
executives and employees, Woori Bank held the Woori Bank Code of
Conduct Compliance Pledging Ceremony.
Second, the Ethics/Compliance Self-Check Test and We-Check Day (a
cyber pact) were carried out every other monthly with the participation
of all staff members so that they could develop a clear understanding
of the Code of Conduct and examine the Code of Conduct and Stan-
via the Supplemental Income Reporting Center. Also, if the amount
received, excluding the allowances for necessary expenses, exceeds
a certain amount, they are encouraged to donate the excess amount.
These practices help create a culture of integrity and anti-corruption
within the organization.
Lastly, Woori Bank implemented the Clean Contract System to ensure
transparency and fairness in tenders, contract conclusion and contract
execution, thereby contributing to the promotion of fair trade and the
spread of ethical management.
dards of Conduct applicable to their respective job positions.
Field-Oriented Legal Support
Third, education materials concerning ethics, internal control and
Woori Bank established a legal team for more rigorous management
legal compliance were posted on the Ethics and Compliance at Work
of legal risks by ensuring independence of those dealing with legal af-
section on the intranet so that they could be used during the monthly
fairs. Legal advice is provided promptly and efficiently by lawyers, each
compliance training and in the field.
Lastly, Woori Bank convened the Council of Compliance Officers four
times to provide instructions on internal control, compliance monitor-
ing activities, insider trading control and prohibition against the use of
undisclosed material information, as part of the efforts to raise aware-
ness of the importance of internal control.
assigned to a specific business group, and there is a pool of lawyers
dedicated to providing emergency legal counseling to branches on the
frontline. Case-specific standard agreements uploaded on the legal
portal system ensure promptitude in providing on-site legal support as
well. Furthermore, the bank provides the FAQs About Legal Cases, with
answers to the most frequently asked questions from branches, to
raise understanding among bank employees of legal cases they may
come across in their line of work.
ETHICAL MANAGEMENT SUPPORT COUNCIL
CLEAN CONTRACT SYSTEM
A working-level council established for the pur-
poses of decision making and communication
on the Code of Ethics programs of practice for
employees.
FIT & PROPER(ELIGIBILITY REVIEW) SYSTEM
Aimed at promoting the eligibility, ethical mind-
set and compliance of employees as financial
professionals, this system categorizes items
for additional/subtractive points based on the
Code of Conduct that employees are required
to comply with and presents specific criteria
for evaluation. Accordingly, model practitioners
receive preferential treatment and violators are
met with guidance or restrictive action.
CORPORATE ETHICAL MANAGEMENT INDEX
FOR CREDIT EVALUATION
This program of practice aims at disseminating
and inducing CSR and ethical management.
The corporate ethical management index is re-
flected into the evaluation items for loan review,
so that ethical management by transacting
counterparties is reflected into the decision in
extending loans to them and determining appli-
cable interest rates
Woori Bank has a “Clean Contract System” with
all partners participating in contracts and pur-
chases with us to encourage transparent and
honorable bidding, contract signing and con-
tract implementation. Furthermore, this system
is a declaration of Woori Bank’s commitment to
ethical management and aims at disseminat-
ing ethical management among partners.
WOORI HOT-LINE
(REPORTING AND COUNSELING)
Woori Hot-Line receives reports from execu-
tives and employees, partners and stakeholders
regarding various irregularities and violations
of the ethical management policy as well as
complaints. After confirming the details with
the relevant departments, an investigation is
requested if it is deemed that an internal viola-
tion has occurred. Through this direct reporting
channel, Woori Bank is endeavoring to become
as a strong and honest organization and con-
tribute to the establishment of sound practices
in the finance sector.
062
063
Woori BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Information Security
Anti-Money Laundering
Woori Bank is dedicated to preventing customer information breach-
Technical Security Measures
Woori Bank has established policies in conformance with domestic
for greater internal control.Second, sanctions risk assessments were
In response to the series of DDoS attacks against financial institutions
in Korea, Woori Bank has built a multi-level defense system by equipping
itself with equipment capable of defending against DDoS attacks, be-
coming the first in the industry to set up a cloud-based defense system
with the Financial Security Institute, and adopting KT’s automatic clean
zone transition system at the DR Center. Voice phishing using a remote
laws and recommendations from international organizations prohib-
carried out on domestic and overseas branches for reinforced internal
iting money laundering and terrorism financing. A dedicated organi-
control. The inherent risks of banks in relation to sanctions were de-
zation as well as related regulations, guidelines and systems are also
termined and the appropriateness of the internal control activities was
set in place as part of a money laundering and terrorism financing
control structure. The Anti-Money Laundering Center, a department
working to prevent Woori Bank’s involvement in any money laundering
es by enhancing its level of administrative and technical security and
fortifying its information security organization.
Bolstered Information Security Organization
The Head of the Information Security Group bears the responsibilities
of Chief Information Security Officer (CISO) and Chief Privacy Officer
(CPO), managing all teams dedicated to privacy (credit information)
protection.
Woori Bank regularly convenes the Information Security Committee,
chaired by CISO, with the meetings held in the presence of 15 depart-
ment heads who are responsible for information security, IT opera-
tions and development, handling customer information and so forth.
access app has been on the rise and in response, the policy to detect
and terrorism financing activities, is responsible for the prevention of
and block remote access apps has been strengthened. Further, a sec-
money laundering and terrorism financing at home and abroad and
ondary authentication process is required for ID and password logins.
management of sanctions and is dedicated to maintaining a control
This is to prevent financial scams and better protect consumers.
system that is up to par with domestic and international standards.
2021 Plans
2020 Performance
The Committee discusses agenda items that cover IT security issues
Going forward, Woori Bank will introduce an Identity and Access Man-
as well as internal control and overall institutional improvements for
agement (IAM) system for integrated management of user access
privacy protection.
The Global Information Security Team was newly incepted in 2020 to
support compliance with local information security regulations and
conduct infiltration tests as a way to examine the IT security system
on a regular basis. Woori Bank also became the first bank in Korea
to analyze the entry route of malware using big data from overseas
branches and is applying financial security technology of the highest
standard throughout its network.
Administrative Protection Measures
To prevent the potential abuse or misuse of customer information,
Woori Bank grants employees with access to only the bare minimum
amount of customer data required to perform their job duties. The
bank continually reinforces internal controls for both the head office
and branches by regular monitoring of unauthorized personal infor-
mation queries deemed irrelevant to work duties, along with inspec-
tions of how they are managing customer information. In addition, all
employees are mandated to attend an information security training at
least twice a year, and Woori Bank also makes onsite visits to promote
privacy awareness and prevent security breaches.
As part of the efforts to proactively respond to the enforcement of
the three laws on data in relation to the movement and disclosure of
public information, Woori Bank became the first in the finance sector
to acquire ISO 27701 and ISMS-P certifications pertaining to privacy
protection, attesting to its strengthened capacity to protect personal
information through a world-class information security system.
to its systems and prevention of illegal access by internal users and
set up a system for real-time monitoring of abnormal behaviors con-
cerning the use of customer information using AI technology. Through
these efforts, it will further sophisticate its personal information pro-
tection system and strength internal controls for information security.
Moreover, a hyper-personalized Fraud Detection System (FDS) will be
established based on customer journey analysis using big data to bet-
ter respond to new types of digital frauds and financial cybercrimes.
This will help protect invaluable customer information and assets,
through which Woori Bank will gain customer trust.
Information
Security
Bolstered Information
Security Organization
Administrative
Protection Measures
Technical Security
Measures
Strengthening the Money Laundering Prevention System at
Overseas Branches
In order to be better prepared for the global compliance regulations
that are becoming stricter by the day, a project was carried out to
strengthen the money laundering prevention system at overseas
branches in connection with a global consulting firm. By upgrading
the Anti-Money Laundering (AML) system at overseas branches, it
was possible to create a world-class system for managing all relevant
aspects, including the Know Your Customer (KYC) policy, transaction
monitoring and risk assessment.
At the same time, in line with the increasing demand for international
money laundering and terrorism financing prevention efforts, such
as mutual evaluations by the Financial Action Task Force (FATF), the
compliance of foreign subsidiaries of Woori Bank was enhanced to
check the money laundering and terrorism financing prevention activi-
ties and upgrade related programs. In addition, an AML diagnosis sat-
isfying the global standards led to improvements in many areas, and
as a result of continued management and supervision to be prepared
for inspections by American supervising agencies requiring the strict-
est compliance in the world, Woori Bank’s American network has been
noted for its excellent anti-money laundering system.
Strengthening of the Sanctions Compliance Program
Woori Bank conducted a wide range of control activities to strengthen
its Sanctions Compliance Program. First, it strengthened the review
concerning the sanctions law. It became the first bank in Korea to
carry out rigorous F/X reviews for regions at risk of being placed under
sanctions, and it even reviewed trade documents using AI technology
assessed, followed by improvements to the identified vulnerabilities.
Third, employee awareness of sanctions and compliance was raised
by providing education on economic sanctions and sharing informa-
tion on the latest trends as quickly as possible. A video education
program for sanctions compliance was developed and administered
to all employees, and customized training was provided to the staff
primarily responsible for F/X processes for imports and exports. By
keep executives and employees informed about the latest changes in
the environment concerning sanctions, the sanctions compliance pro-
gram was strengthened further.
Reinforcement of Internal Control to Prevent Money Launder-
ing and Terrorism Financing
Woori Bank strengthened its Know Your Customer (KYC) policy, which
creates three lines of defense: customer verification, inspections of the
Anti-Money Laundering Center and independent audits by the Board
of Audit and Inspection. It has also upgraded the domestic anti-money
laundering system in order to prevent money laundering and terrorism
financing. Related education is provided to all members of the organiza-
tion to raise awareness of the importance of legal compliance, and the
national risk assessment data from the Basel Committee on Banking
Supervision were standardized and reflected in order to continually im-
prove the internal control system.
2021 Plans
Woori Bank plans to set up an AI-based money laundering and terror-
ism financing inspection system and re-establish a money laundering
and terrorism financing prevention system at its foreign subsidiaries to
be prepared for more stringent domestic and international standards.
Woori Bank will introduce an evaluation system for measuring the
risks of money laundering and terrorism financing in new businesses
in the international community and set up an internal control system,
thereby meeting the anti-money laundering and anti-terrorism financ-
ing requirements as a global financial institution.
064
065
Woori BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Nurturing Professionals and Strengthening Wealth Manage-
Taking a Greater Share of the Pension Market
ment Capacity
There are plans to secure pension customers who will make Woori
Woori Bank is sparing no efforts or resources in nurturing qualified
Bank their primary bank and take a bigger chunk of the market. When
wealth management professionals. Each year, the bank carries out
it comes to retirement pensions, stability and ongoing management
customized training for PBs and FAs based on clear CDP. In 2020, in par-
are especially crucial. Woori Bank will manage returns for customers
ticular, a PB qualification system was introduced in order to evaluate the
based on outbound service management such as product switching
professional competency of PBs and verify their performance related to
for customers whose investments have reached maturity and custom-
returns for customers.
2021 Plans
ers with unmanaged assets. The Wealth Management Group will also
gain new customers and investments by offering retirement pension
ETF according to customer needs, launching products in line with the
market trends, and providing a wide-ranging product lineup including
The objective of the Wealth Management Group in the year 2021 is to
guaranteed investments.
create a stable profit structure and a foundation for long-term growth.
By strengthening the competitiveness of its face-to-face and non-face-
to-face channels, expanding the PB customer base and fostering re-
Fostering Professionals of the Future
Employee Satisfaction
Woori Bank believes that in order to provide customers with the best
Stay Strong, Korea Bazaar
possible services, the executives and employees must be highly sat-
isfied with the working environment. Accordingly, the Employee Sat-
isfaction Center was established in 2007 and has been developing
and implementing a wide array of programs to boost employee satis-
faction ever since. As such, diverse employee satisfaction programs
The Stay Strong, Korea Bazaar is an employee satisfaction program
initiated under the concept of mutual cooperation through the pro-
motion of consumption. Through this program, Woori Bank achieved
high employee satisfaction by offering employees with a chance to
purchase agricultural and industrial products and specialty products of
designed to create a customer-centric mindset based on a sense of
the finest quality, while fulfilling its CSR by assisting small businesses
ownership instilled through improved job satisfaction are planned,
facing financial hardships due to COVID-19 and enterprises affected
developed and operated on a regular basis.
by natural disasters such as wildfires, typhoons and torrential rain.
lated professionals, Woori Bank will innovate the way it does business,
The Wealth Management Group will select and nurture young and com-
through which it will achieve strong growth and gain recognition from
petent employees with the potential to become leaders of the future in
2020 Performance
the market.
Strengthening Channel Competitiveness
their respective fields. To do so, it will secure a pool of professionals and
promote human resource development according to the CDP system.
By offering them with diverse capacity building opportunities, such as
work experience, intensive training, and experience working in relevant
Implementing Programs for improved Employee Satisfaction
Woori Bank has been running a wide range of original and interesting
programs to improve employee satisfaction.
The TCE and TCP centers will additionally be established in key re-
departments, it will nurture the employees of Woori Bank into wealth
In 2020, various new programs were developed and carried out to
gions for the wealth management business, and the specialty and
management experts with professionalism and sales capacity.
maximize employee satisfaction, while adhering to the COVID-19
The Stay Strong, Korea Bazaar not only led to increased employee sat-
isfaction but was met with appreciation from many business owners.
Even after the end of the program, the executives and employees of
Woori Bank continued to purchase from the participating businesses
and build win-win relationships with them.
•••
competitiveness of face-to-face channels for wealth management will
be reinforced in various areas, including corporate banking and retail
banking. Also, the non-face-to-face channels will be upgraded by im-
proving the wealth management platforms and operating consultation
channels. There are plans to launch wealth management platforms
after optimizing the UI/UX and reorganizing the features centering on
users and incorporate MyData, AI and other promising businesses into
the platforms in order to build digital capacity. Moreover, for the pur-
pose of setting up a non-face-to-face customer management system
at the branches, Woori Bank will establish the Wealth Management
Consulting Center, reinforce the in- and outbound wealth management
services, and strengthen its non-face-to-face wealth management
consulting capacity.
Expansion of the Customer Base
The Wealth Management Group plans to continually expand its PB
customer base based on ongoing customer management. It will
strategically assign PBs and FAs based on the Value Group (VG) pro-
gram, a new business system introduced by Woori Bank to provide
financial services of the highest standard by promoting collaboration
among the branches. By jointly providing services to and managing PB
customers, it will encourage existing customers to increase its busi-
ness with Woori Bank and attract new customers. Loyalty among PB
customers will be enhanced through sophisticated target marketing
based on big data, while excellent cases of joint services will be contin-
ually discovered and shared to achieve further improvements.
066
WM Distribution Channels
businesses suffering from the pandemic and provide a chance for
The bazaar, Stay Strong, Korea, was organized to support … small
guidelines.
682Channels
Asset Management Experts
694PBs/FAs
consumers to purchase quality products at affordable prices. This
was part of Woori Bank’s efforts to fulfill its CSR and boost employee
satisfaction.
The Employee Satisfaction on LAN Program, on the other hand, was
implemented to help employees overcome the Corona bluesand
engage in pastimes and cultural activities. Themes included cooking,
music, at-home workouts and interior decor, and there were even pro-
'The Stay Strong, Korea Bazaar' poster
grams inviting employees to participate with their families, which was
to promote a balance between work and family life.
Woori Bank is dedicated to promoting employee satisfaction based on
the belief that the happiness of employees and their families is what
gives the bank a competitive edge.
Private Asset Management Brand
Private Banking Brand of Woori Bank
One-on-one tailored financial
consulting services by asset
management experts
Private banking services dedi-
cated to each customer offered
in a fittingly refined setting
Employee Satisfaction on LAN
The Employee Satisfaction on LAN Program was introduced to sup-
port employees in enjoying their pastimes and cultural activities under
the theme of ‘zero-contact, home, and family.’
It helped employees get over the Corona blues caused by restrictions
against social activities and discover and share their talents and ca-
pabilities, which promoted communication among employees and
boosted employee satisfaction.
The activities included cooking (Home Cook), workout (Home Train-
ing), music (Let’s Hear You, Home Sing), and interior decor (Show
Us Your Home). Home Cook was a non-face-to-face cookoff where
contestants participated from home to share their unique recipes and
receive votes from other employees.
067
Woori BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Risk Management
Home Training was a non-face-to-face bilateral at-home workout pro-
Upgrading the PC-Off System to Normalize Work Hours
In 2020, the global economy took a devastating blow from the
Responding to the COVID-19 Pandemic
gram where participants got to take yoga lessons from home and ob-
tain feedback from the instructor on Zoom. Let’s Hear You, Home Sing
was a non-face-to-face singing competition program where employ-
ees were invited to participate with their families. The final round was
streamed live on YouTube with the viewers voting for the participants
in real time. Show Us Your Home was organized to promote commu-
nication among the staff and harmony within each family by giving a
chance for them to show off their home interior and companion ani-
mals and plants in time for the Christmas holidays and New Year’s.
In 2013, a system was introduced to normalize work hours and im-
prove the work environment, considering that bank employees typi-
cally work overtime. The system has become intricately incorporated
into the corporate culture of Woori Bank with most of the branches
complying with the related standards. Computers are configured to
COVID-19 pandemic. This in turn led to the contraction of the real
economy in Korea, along with increased volatility in financial and F/X
markets as well as credit risks. While the tension in financial markets
was somewhat eased by market stabilization measures introduced
by financial authorities, there still remain internal and external risks,
turn off before 7 p.m. so that employees can enjoy leisure activities
including a surge in confirmed cases and weak recovery of the global
and spend quality time with their families after work. This practice
economy. Plus, individual businesses are in greater debt amid in-
also boosts work efficiency and concentration, thereby eliminating the
creasing business uncertainty and household debt has been hitting a
need to work overtime. In July 2019, a 52-hour work week policy was
new all-time high record each year.
Woori Bank Team Finishes First in the 13th Regular Season
of WKBL
Woori Bank women’s professional basketball team finished first in
the 2020-2021 season of the Women’s Korean Basketball League
introduced and the PC-Off system was revamped to promote a bal-
ance between work and family life as well as flextime. Going forward,
Woori Bank will improve these systems based on ongoing monitoring
and feedback and endeavor to boost employee satisfaction.
A comprehensive review of the economic situation in 2020 shows
soaring household and business debt and asset markets, such as
real estate and stock markets, seeing a flood of money, which has
been leading to a disconnect between financial markets and the real
economy. Unless the real economy recovers adequately, non-per-
(WKBL), which was its 13th regular season since its launch. Although
Free Rental of the Auditorium at the HQ as a Wedding Hall
forming loans will be on the rise due to the risks in vulnerable areas.
In 2020, risk management became especially crucial in dealing with
the major crisis faced in financial markets and the real economy due
to the COVID-19 pandemic.
Accordingly, Woori Bank mobilized an emergency response organiza-
tion and implemented a Contingency Plan(C.P.) to successfully man-
age the risks arising during the crisis situation. Measures introduced
to reinforce risk management in vulnerable areas included expanding
the scope of management for potential insolvency, and industries with
increased credit risks were managed more intensively.
Also, in consideration of fluctuations in the economy caused by
COVID-19, the portfolio was rebalanced by reducing concentration on
certain industries and managing the limits in a timely manner so as to
prepare against an economic downturn.
they did not win the championship (V12) in the playoffs, their results
were praiseworthy considering the fact that Park Hye-jin, the team’s
star player, had been off the roster for an extended period of time due
an injury and Kim Jeong-eun, another star player, had been out for the
entire season due to an ankle injury. This actually gave the younger
players a chance to be on the court and demonstrate their potential to
lead the team in the future.
Woori Bank allows its employees to use the auditorium at the head-
quarters as a wedding hall for free. It has been receiving rave reviews,
with employees expressing their appreciation in regard to the spa-
ciousness and classy appearance of the auditorium-turned-wedding
hall and being given plenty of time to host a wedding. The exquisitely
This will consequently degrade asset soundness of banks and in turn
Approval of Early Adoption of Basel III in the Credit Risk Area
increase the bad account costs and lower capital adequacy. Accord-
ingly, risk management has become more important than ever. In rec-
Woori Bank obtained approval from the Financial Supervisory Service
for early adoption of Basel III in the credit risk area in 2020 3Q. As a
ognition of this, Woori Bank has been fortifying its risk management
result, the BIS capital adequacy ratio increase 318bp to 17.34%, as of
system in an effort to remain strong and resilient against external
2020 4Q.
beautiful waiting room for the bride, renovated luncheon area, pyebaek
shocks.
room, and wedding car created from the CEO’s car have also gained a
Woori Bank women’s professional basketball team, which recorded its
favorable response. From 2012 to 2018, a total of 1,023 couples tied
7th win in 2020 including 6 successive victories in the 2010s, will do its
to knot at the auditorium, and weddings were held for 160 couples in
2020 Performance
best to become the undisputed No.1 team in the league in the 2020s.
2019 and 100 couples in 2020, attesting to the fact that it has become
Woori Bank successfully managed risks even in the midst of challeng-
a highly sought-after wedding venue. The wedding hall rental service
es brought upon by COVID-19 and other internal and external situa-
offered by Woori Bank not only helps employees save money but also
tions in 2020. A proactive risk management system was strengthened
gain a sense of pride and loyalty toward the company with increased
to better prepare against an increase in risk factors associated with
satisfaction.
potential insolvency.
Also, approval was obtained from the Financial Supervisory Service for
early adoption of Basel III in the credit risk area. Along with this, a risk
management system was established for emerging sectors that have
been recording rapid growth and various improvements were made
using cutting-edge technology to continually develop and upgrade the
risk management system.
Capital Adequacy Ratio (Unit: %)
Adoption of Basel III in the
credit risk area
15.40%
14.77%
14.80%
17.75%
17.34%
19.4Q
20.1Q
20.2Q
20.3Q
20.4Q
Woori Bank Team Finishes First in the 13th Regular Season of WKBL
068
069
Woori BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Advancement of the Risk Management System
As for retail loans, the monitoring system for loans provided via non-
Due to the COVID-19 pandemic, there has been a rapid transition
2021 Plans
IT Group
IB, derivatives, non-face-to-face products and non-deposit financial
investment products, the demand for which has been on the rise due
to soaring asset prices and an increase in non-face-to-face channels,
were defined as ‘Emerging Risks,’ and a system to manage these risks
was improved by ensuring in-depth monitoring and preparing a regular
face-to-face channels will be upgraded, in addition managing high-risk
from traditional face-to-face financial services to contactless services
borrowers more intensively. In the global business area, the group will
using new digital technology. It has become essential for financial
boost its risk management capacity in accordance with the localiza-
tion strategy and continually strengthen risk management in IB, a high-
risk, high-return business.
institutions to attract customers through non-face-to-face channels
using information technology, and in response, financial firms across
the country are pursuing new businesses incorporated with IT to gain
reporting system. In the case of non-deposit financial investment prod-
Second, the group will be prepared against the institutional changes
dominance in financial markets.
The IT Group plans to make 2021 the year of innovation for Woori
Bank to take technological leadership in the financial industry, based
on the vision of ‘Change Starts with IT.’
First, as the ‘Innovation Strategy for the Next Normal,’ the IT Group will
‘completely reform Woori FIS and ITO to spearhead business innova-
tions’ and ‘pursue IT innovations to shape the next normal’ to prepare
Aside from this, an integrated interest rate and liquidity manage sys-
Third, in response to the contactless trend, the group will pursue
2020 Performance
ucts, in particular, a procedure for consulting the Risk Management
that will have a direct impact on the business environment. In relation
Department ahead of a product launch was newly established, and
to the adoption of Basel III, the group will ensure stability of the regula-
the risk examination process was reinforced by requiring the Head of
tory capital calculation system for the credit risk area where the inter-
the Risk Oversight Department and the Head of the Risk Management
national regulatory framework began to be applied in September 2020
Group to attend the Non-Deposit Product Council and Non-Deposit
and set up the system for market and operational risks in time for its
Product Committee meetings.
adoption in 2023.
tem was established by creating a dashboard for monitoring related
Risk-Tech to apply frontier technology to risk management. A good
risks and developing a comprehensive analytical tool.
example of such efforts is to apply non-financial information, such as
2021 Plans
communication information, to non-face-to-face loan strategy model
to support the sophistication of the decision-making process for retail
loans and develop a non-face-to-face loan model specifically for indi-
In 2021, the Risk Management Group of Woori Bank will seek to op-
vidual businesses.
timize the Risk-Return profile by ensuring efficient capital allocation
and steady asset growth with priority on risk management. To this
end, there are plans to pursue businesses in connection with four risk
management strategies: be prepared against potential risks, proactive-
ly respond to changes in the financial environment, pursue Risk-Tech
and sophisticate the risk capital management system.
First of all, in order to be prepared against potential risks, the group will
improve its portfolio management against corporate risk exposures
and better manage household loans. With respect to corporate loans,
the credit limit will be adjusted for each industry in consideration of the
changes in risk levels caused by the pandemic and the adequacy of
credit analysis will be managed better. The timeliness of loan reviews
for those in vulnerable industries will be improved as well.
Finally, the group will ceaselessly polish the risk capital management
system to optimize resource allocation. To this end, the group will
allocate and manage risk capital limits in reflection of the financial
objectives of each group and risks in the business environment under
the principle of considering profitability and the risk level in a compre-
hensive manner.
In order to turn Woori Bank into a leading IT bank in the industry, the
for the contactless era. Further, the cloud establishment project will be
IT Group has created a robust foothold for future growth by building
continued in order to build advanced tech-based infrastructure.
cloud infrastructure, reestablishing the bank-wide communications
network and ensuring top-class IT services.
Second, the IT Group will ‘Develop Human Resources in IT’ to secure
future growth engines. By strengthening the ‘professional competen-
cies of the IT manpower’ and ‘development capacity of the bank,’ the IT
Group will improve the quality of development projects, and it will also
strengthen the ‘marketing capacity of employees through capacity
Reestablishment of the Bank-wide Communications Network
building of data experts.’
In 2020, the IT Group re-established the communications network
across the data center, branches and call center to build advanced net-
work infrastructure. Through this project, a major overhaul took place
across all areas related to the communications network including the
transmission network, IPT, communication security and audio record-
ing system. In the case of the data center, three communication lines
were established with the Disaster Recovery (DR) Center to be ensure
uninterrupted operation even in the event of a natural disaster or acci-
dent. For branches, the communication speed was doubled and the
backup lines were replaced to create a stable operating environment.
In addition, the latest equipment was introduced into the communica-
tions network to be prepared against malfunctions and failures and
improve service quality. By building a cutting-edge network, Woori
Bank is prepared to readily incorporate new technology and respond
to changes in the financial environment, through which it will provide
customers with services of higher quality and stability.
Creation of Cloud Infrastructure
Woori Bank endeavored to introduce cloud infrastructure to pursue
digital financial business in a timely manner in line with the trends of
the age of Digital Transformation (DT). Through this effort, the bank
expected a prompt introduction of cloud infrastructure and cut IT
costs based on efficient management of infrastructure resources.
Woori Bank plans to continue the project on building cloud infrastruc-
ture and developing a management portal in 2021 to secure future
growth engines.
Third, the IT Group will ‘Reinforce Support for Business Operations.’
The investment process will be made swift by improving the review
procedure and support will be provided for the core digital businesses
of each business group, while providing robust IT services.
Fourth, stability will be ensured by reinforcing risk management. The IT
Group will ensure continuity of operations by applying more stringent
measures for IT risk management and strengthen internal controls
through an internal audit system.
Change Starts with IT
2021 IT Group vision
Innovation Strategy for the Next Normal
Develop Human Resources in IT
Reinforce Support for Business Operations
Stability Ensured by Reinforcing Risk Management
070
071
Woori BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Woori
Card
www.wooricard.com
Woori Card was incorporated in April 2013
following a spin-off from Woori Bank aimed
at strengthening the credit card business of
Woori Financial Group and fortify its compet-
itiveness in the non-banking sector. Based
on an extensive network and customer base,
Woori Card formulated optimized business
strategies as a card company of a financial
group and has been aggressively discovering
new business areas to secure new growth
engines. With customer value as the top pri-
ority in every business area, the company is
constantly developing new products and ser-
vices that meet customer needs. It is planning
to provide differentiated services by pursuing
digital transformation, pushing forward innova-
tion across all business areas and partnering
with companies from other industries.
2020 - 2021
Woori Card wins
2020 Performance
Business Performance
2021 Plans
While an increase in credit sales resulting from recovery of consumer
Since 2016, Woori Card has been engaging in installment payment, lease
spending is expected in 2021, there are concerns of intensifying com-
Operating Income (Unit: KRW in billion)
and credit loan businesses to generate income from diverse sources.
petition in card and car loans due to easing of regulations on leverage
Also, as part of the efforts to enter overseas financial markets, Woori
and a decline in financial soundness of vulnerable groups in relation
Card obtained a Micro-Finance Institution(MFI) license in Myanmar in Oc-
to COVID-19. Also, the amendments to the three laws on data and
tober 2016 and has been offering small-sum loan services since Decem-
the Electronic Financial Transactions Act have given non-financial
ber 2016 following the establishment of TUTU Finance-WCI Myanmar. In
companies greater power and influence in the financial industry and
2020, the company has been preparing to initiate new businesses, such
driven up the demand for data-based businesses. Not only that, but
as MyData, individual business CB and open banking, in response to the
also the tightening of regulations on the Debt Service Ratio (DSR) and
amendments to the three laws on data (Personal Information Protection
recalculation of the merchant fees (2022), posing concerns of lower-
Act, Act on Promotion of Information and Communications Network
ing profitability for card companies, have necessitated proactive risk
Utilization and Information Protection and Credit Information Use and
management, asset increases and diversification of the profit struc-
Protection Act) and promotion of the data economy. After receiving ap-
ture. In response, with the management objective of ‘Digital, Efficiency
proval for the credit information management business (MyData) from
and Growth: A Design of Sustainable Future’ for the year 2021, Woori
1,387
1,368
1,388
YoY
+1.4%
2018
2019
2020
the Financial Services Commission in January 2021, it has formed an
Card has established five management strategies: efficient growth
organization to pursue the business. Based on these efforts, Woori Card
and increase in income-generating assets; discovery of future income
Net Profit (Unit: KRW in billion)
recorded KRW 120.2 billion in net income in 2020, an increase of KRW
sources; fully digital across all areas; data-based risk management;
6.0 billion from the previous year, despite shrinking consumption due to
and customer-centric ESG management. Accordingly, it will reorganize
COVID-19. This was possible thanks to an increase in financial assets
its business portfolio as a ‘loan specialist that is achieving sustainable
127
120
114
from car financing and financing services used by credit card users of a
growth.’ To this end, Woori Card will create steady income streams
prime asset as well as improved asset soundness.
Rationalization of Management
by implementing differentiated customer recruitment strategies for
different channels, building an income-generating portfolio centering
on high-yield financial assets, pursuing data-based hyper-personalized
marketing and risk management and cutting costs through digiti-
Woori Card is seeking to continually restructure its organization to
zation. In addition, there are plans to create future income sources
proactively and systematically respond to the changes in the business
through business diversification by entering into new business areas
environment. It has concentrated its core functions and sped up the
of the financial industry, expanding global businesses and initiating
decision-making process by restructuring the sales organization to
the data business and overseas remittance services. Along with these
promote the use of cards and recruit additional users. In order to boost
efforts, the company will invest utmost efforts to create synergy with
prime financial assets and auto financing, a dedicated division and
the global network of Woori Bank and the companies under Woori Fi-
regional centers were newly established. The Future Growth Division
nancial Holdings in order to secure new growth engines.
YoY
+5.3%
2018
2019
2020
was launched to further expand its global businesses and incubate
new growth businesses, while digital platform organizations have been
integrated into the Digital Innovation Group to pursue digital innovation
at an accelerated rate and produce tangible results.
Usage (Unit: KRW in billion)
76,3588
82,650
85,037
YoY
+2.9%
COVID-19 Support Activity (as of Feb. 2021, KRW million)
Category
Description
Cases
Amount
Deferral of credit card payments
6-month deferral for payment of the principal for credit sales,
financing and capital sales
Discounts on interest rates for card loans
and payment deferrals
Up to 50% discount on the interest rate, Switch from installment payment to
interest-only payment
Emergency loans for household spending
Up to 50% discount on interest rates(Up to KRW 3 million)
Exemption of overdue interest
and deletion of related records
Exemption of overdue interest and deletion of related records for up to 3
months from the payment due date
Postponement of the maturity date
(repayment of the principal and interest)
6-month deferral for loans related to financial support for SMEs and self-em-
ployed individuals
Pre-workout for personal debt
Total
Deferral of payment of the principal for 6 months or longer for those at risk of
defaulting
1,347
255
80
44
295
30
8,986
2,500
195
127
3,233
365
2,051
15,406
073
072
2018
2019
2020
• Wibee Market wins the Best Financial Shopping Platform Award at the 2020 Mobile Awards Korea (Apr. 9, 2020) • The Best Credit Card Award at the 2020 Korea Good Brand Awards (May 28, 2020) • The Minister of Trade, Industry and Energy Award at the 22nd Korea Brand Awards (Dec. 11, 2020) • The Governor of Financial Supervisory Service Award at the 2021 Edaily Korea Financial Consumer Awards (Jan. 28, 2021) Woori CardINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Woori
Financial
Capital
www.woorifcapital.com
Woori Financial Capital is one of the leading
capital providers in the industry that was es-
tablished in 1994.
In December 2020, Woori Financial Group
took over the position of the largest share-
holder from Well to Sea No. 3 Special Pur-
pose Corporation, which marked a turning
point for the company. Woori Financial Cap-
ital will endeavor to become the best capital
provider by pursuing digital innovation, dis-
covering new business areas, creating a syn-
ergy system and honing its competitive edge
in core business areas by working closely
together with Woori Financial Group.
Digital Finance Innovation Award at the
2020 Finance and Securities Awards
In recognition of contributing to the digital
transformation of the financial sector by devel-
oping innovative digital products
General Financial Blog Award at the
i-Awards Korea 2020
Demonstration of excellence through a fair and
objective evaluation of the service quality
2020 Performance
2021 Plans
Strategic Risk Management in Response to a Downturn in the
Real Economy
In 2020, the real economy took a hit a from the COVID-19 pandemic,
creating concerns of insolvency of borrowers. in response, Woori
Financial Capital strengthened its screening capacity by introducing
SOHO overview service and managed the soundness of high-risk
products and borrowers who are exposed to economic risks, such as
personal finance and commercial finance customers. As a result, the
percentage of sub-standard credit extended was improvedfrom the
previous year by 22% to 1.77%.
Diversification of Income Sources and Improvement of Man-
agement Efficiency
It is becoming increasingly competitive in the car financing market,
making up the biggest portion of the credit market. Inter-industry com-
petition is growing in the area of auto loans for new cars, in particular,
with credit card companies and banks entering the market. According-
ly, Woori Financial Capital has been honing its competitive advantage
by concentrating on used car financing and corporate finance. As for
used cars, on the other hand, the Dealer Lounge, a platform exclusively
for used car dealers, was upgraded and relaunched in September
In 2021, it is expected that financial markets will continue to suffer
from unpredictable events. There is increased volatility in interest rates,
with the rise in long-term interest rates, and financial authorities are
tightening regulations, such as contracting the leverage ratio to control
the liquidity of the non-card credit providers. With contactless services
becoming the next normal across all industries, it is predicted that
competition will become heated in financing with the use of new dig-
ital technology. Woori Financial Capital was incorporated into Woori
Financial Group in December 2020, and it is expected to undergo tre-
mendous growth in the future.
In the midst of rapid changes, the company has established the fol-
lowing four management strategies to attain the management objec-
tive to ‘Prepare the foundation for a new giant leap with the DNA for
innovation’:
Loan portfolio (Unit: KRW in billion)
6,895
5,739
4,591
YoY
+20.1%
2018
2019
2020
First, Boost productivity based on digital technology and innovate ze-
Net income (Unit: KRW in billion)
ro-contact business models;
Second, Discover promising businesses of the future and establish
measures to strengthen businesses and competitiveness in connec-
tion with affiliates;
Third, Break away from the competition with differentiated core busi-
97
91
76
YoY
+6.4%
2020 to maintain a competitive edge by directly dealing with dealers.
nesses;
As a result, the number of dealers using the platform increased by
more than 3,000 and sales surged by about KRW 5 billion a month, on
average. As for corporate finance, the company has been selectively
Fourth, Be proactive in responding to financial regulations and the
macroeconomic environment.
2018
2019
2020
partaking in excellent deals in PF and real estate collateral that are
Furthermore, Woori Financial Capital will increase assets in high-
highly sensitive to changes in the economy. While concentrating on
yield strategic products, pursue company-wide risk management
the NPL business, the company recorded 360% YoY growth with a
and reduce the bad debt expense, thereby promoting asset and profit
new operating income of KRW 430 billion in 2020. Aside from this,
growth.
Woori Financial Capital has been discovering future income sources
by partnering with a wide array of online platforms and financial firms
and entering the general lease market, in addition to pursuing digital in-
novation by introducing electronic contracts, promoting digital finance
and setting up an open API system.
Substandard & below (Unit: %)
2.28%
1.77%
1.38%
YoY
-0.51%p
COVID-19 Support Activity
• Deferral of principal and interest payment for small businesses af-
fected by COVID-19
KRW 122.5 billion
• Donating to assist households affected by COVID-19 in regions des-
ignated as disaster areas by the State and households in a crisis
074
2018
2019
2020
075
Woori Financial Capital INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Woori
Investment
Bank
www.wooriib.com
Woori Investment Bank is Korea’s one and
only all-encompassing financial firm whose
primary business areas including depository
business, including bills issued and CMA, as
well as corporate loans, structured finance
and securities management. Recently, Woori
Investment Bank has been striving to diver-
sify its sources of income by expanding into
NPL investment, brokerage and venture cap-
ital areas, while discovering new businesses
such as CIB to create synergy with Woori
Financial Group.
2020 Performance
Paid-in Capital Increase of KRW 100 Billion
Depository Business: Non-Face-to-Face Channels
Woori Investment Bank increased the capital by KRW 100 billion in
The Digital Finance Department was newly established to deliver
services via non-traditional, contactless channels, as the COVID-19
pandemic ushered in the era of telefinance. A high-interest product
exclusively available on online platforms (The Dream Installment Sav-
ings) was launched, and online marketing campaigns helped attract
more than 30,000 new customers. Woori Investment Bank continually
improved its platforms by boosting convenience in opening an ac-
count using a computer or mobile device and enhancing information
security, in addition to offering new products and services through
partnerships with affiliates and FinTech platforms.
Loans & Investment: Expansion of IB and Fixed-Income
Business
Amid the low interest rate, low growth trend, Woori Investment Bank
concentrated on the securities business in order to boost non-interest
income. Woori Investment Bank revitalized its IB business including
deal management, arrangement and advisory services and reinforced
its organization and personnel for bonds management, acquisition
and brokerage services. The company also entered into new busi-
ness areas, such as housing bond brokerage and P-CBO, to generate
commission income. Through these efforts, Woori Investment Bank
recorded KRW 33.1 billion in commission income and KRW 6.6 billion
in income from bonds management in the IB business, and as a result,
the CAGR for non-interest income in the past three years has been on
the rise at 89.1%.
Reinforcing Risk Management
Woori Investment Bank strengthened its risk management measures
in consideration of growing uncertainties in the financial environment
due to the pandemic. The contingency plan was revised in alignment
with the Group’s crisis response system, and credit lines were secured
from domestic commercial banks to prepare against a liquidity crisis.
As a result, the maximum credit line has reached KRW 210.0 billion, as
of March 2021.
The company recruited additional loan officers to better manage cred-
it risks, in addition to pursuing intensive monitoring of industries sensi-
tive to COVID-19, on-site due diligence of places of business receiving
PF and follow-up monitoring of loans. As of late 2020, prime loans
November 2020, with the aim of eliminating business constraints and
drive continuous growth, by granting existing shareholders with the
preemptive right to new stocks (subscription rate of 91.4%). There are
plans to further boost the value of the company through excellent IR
and improved profitability achieved by increases in loans and invest-
ments.
2021 Plans
The 2021 management objective of Woori Investment Bank is to
‘Emerge as the Investment Bank with the Highest Efficiency,‘ based on
which four management strategies were established: ’Strengthen Core
Competencies,‘ ‘Expand the Business Portfolio,’ ‘Innovate Risk Man-
agement and Internal Controls’ and ‘Strengthen Infrastructure.’
Based on the paid-in capital increase of KRW 100 billion in 2020,
Woori Investment Bank is seeking to increase loans and marketable
securities by approximately KRW 1 trillion. To this end, there are plans
to concentrate on forging a competitive edge in corporate finance, a
backbone of the company’s business.
In order to generate a steady stream of non-interest income, the IB
business will be further expanded and to achieve this, related special-
ists were recruited, resulting in an increase in the number of structured
finance departments from one to three. There are also plans to expand
the DCM business and enter into the ECM business to explore new
income sources.
Woori Investment Bank will expand the CIB business in full swing to
create synergy with other affiliates of the Group and raise the value of
Net operating income (Unit: KRW in billion)
■ Non-interest income ■ Net interest income
113
78
88
54
63
43
20
34
35
YoY
+28.8%
2018
2019
2020
Net income (Unit: KRW in billion)
63
33
53
YoY
+17.8%
the company by preparing an ESG management system.
2018
2019
2020
COVID-19 Support Activity
Number of non-face-to-face customers
(Unit: persons)
• Exemption of digital money transfer fees for all retail customers
: 386,970 exemptions (KRW 190 million)
• Financial assistance for enterprises affected by COVID-19: Post-
ponement of loan maturity: 2 loans (KRW 5 billion)
•Provision of face masks to customers (1,000 masks)
•Discount on rent for enterprises affected by COVID-19
account for 87% of all loans, attesting to the efforts made to strive for
• Crowdfunding on Wibee crowdfunding platform: COVID-19
asset growth in consideration of risks. To scrupulously formulate and
support and damage prevention by six NGOs
implement companywide loan strategies, the Loan Policy Department
was newly established.
• Compensatory funding for face mask manufacturers
• A charity event to overcome COVID-19 (Gwangju)
• Sponsored the music education program for children from
marginalized classes: Beautiful Mind (KRW 3 million)
65,311
31,096
YoY
+34,215
757
2019
2020
076
077
Woori Investment BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
In 2020, the company achieved remarkable
land trust, which is expected to enable sustainable growth in the long
run.
Second, Woori Asset Trust will concentrate on new businesses. It will
expand its urban renewal business through the Urban Renewal Team
Woori
Asset
Trust
www.wooriat.com
Woori Asset Trust celebrated its 1st anniver-
sary in 2020 after being incorporated into
Woori Financial Group in December 2019.
growth in every area, including new contracts,
ROE and profits, by improving the internal or-
ganization and systems and entering in land
trust agreements with construction comple-
tion guarantees.
In 2021, the company will dedicate its efforts
to the core business areas and strive to gain
dominance in the real estate trust business.
2020 Performance
2021 Plans
Contract value (Unit: KRW in billion)
In order to build the industry’s best management system, Woori Asset
Woori Asset Trust plans to ‘Intensively Pursue Core Businesses,’
Trust restructured its organization and review system. The RM Team
‘Pursue New Businesses’ and ‘Develop the risk management system
129
was separated into the Risk Management Team and Compliance
and internal control system’ as strategies for ‘Obtaining a competitive
Support Team and the Risk Management Officer and Compliance Of-
advantage in the real estate trust market with stability and innovative
ficer were appointed so as to reinforce the risk management system.
growth,’ as the objective for 2021.
76
Along with this, the review process for management-type land trusts
with construction completion guarantees and loan-type land trusts
was made more scrupulous. As a result, Woori Asset Trust recorded
an NCR of 1,286%, the second highest among 11 companies, despite
aggressively entering into new agreements in 2020.
As for more specific management strategies, the company plans to
hone its competitiveness in the real estate trust area, while striving
to secure non-land trusts by creating synergy with the Group. To this
end, it will discover management-type land trusts with construction
completion guarantees, selectively pursue loan-type land trusts with
In addition, considerable efforts were invested in winning new land
excellent stability and win contracts for general management-type
trust agreements with construction completion guarantees, which
land trusts with relatively low risks. In addition to increasing agency
greatly improved the business portfolio. The portion of the aforemen-
services centering on local housing cooperatives of a prime asset,
tioned type of trust in the portfolio increased from a mere 12% to 50%,
the company will endeavor to selectively secure large-scale collateral
indicating a switch in primary products from collateral trust and agen-
trusts and win more contracts for collateral trusts and general man-
cy service to guarantee-type land trust and general management-type
agement-type land trusts by creating synergy withe the Group.
YoY
+68.6%
2019
2020
Operating income
(Unit: KRW in billion)
Net income
(Unit: KRW in billion)
75
79
31
35
In 2020, Woori Asset Trust won contracts valued at KRW 128.8 billion,
established in 2020 and discover small-scale renewal projects for
a 69% jump from the KRW 76.4 billion recorded in 2019. Accordingly,
which regulations have been eased. In addition, the company will firm-
net income climbed 13.4%p YoY. It also recorded the highest ROE in
ly position itself in the market by obtaining approval as REITs AMC, es-
2019
2020
2019
2020
the industry at 31.6%, attesting to its excellent efficiency.
tablishing related organizations and launching REITs products in 2021.
Total equity (Unit: KRW in billion)
129
94
YoY
+36.9%
2019
2020
Company
ROE (%)
ROA (%)
NCR (%) Net income
Woori Asset Trust
36.4
21.7
1,286
35,312
(unit: %, KRW in millions)
Korea Trust
28.1
21.2
1,009
45,791
Lastly, the risk management system and internal control system
will be further developed. A preliminary review system and pool of
contractors will be created, and partners will be used for pre- and
post-construction monitoring. Through the independent operation of
a contract review department, the reviews will be carried out more
swiftly and with greater professional expertise. Internal controls will be
reinforced by creating a related manual and money laundering preven-
tion system, and professionals will be nurtured to effectively deal with
Hana Asset Trust
26.7
18.9
949
80,821
operational risks.
KB Real Estate Trust
23.4
12.7
442
30,725
Kyobo Asset Trust
22.7
17.2
1,322
25,767
Asia Trust
21.9
16.4
887
66,874
COVID-19 Support Activity
Mugunghwa Trust
21.0
10.9
1,023
122,573
• Donated 2,500 face masks to the Soraepogu Merchants Associa-
Daehan Real Estate
Trust
Korea Asset
Investment Trust
Korea Real Estate
Investment and Trust
KORAMCO REITs
and Trust
13.9
10.1
948
16,644
13.8
11.8
8.3
4.5
4.6
3.6
1,163
30,924
639
61,521
508
26,968
Note) Data from Korea Financial Investment Association E-Disclosure Service
(as of Dec. 31, 2020, based on 11 asset trust companies)
tion (Jan. 6, 2021)
• Participated in the donation relay of Sports Doctors and donated
KRW 10 million to provide medical care to vulnerable groups during
the COVID-19 pandemic (Sept. 10, 2020)
• Donated 450 masks and 5 hand sanitizers to Yeongsin Welfare So-
ciety (Apr. 7, 2020)
• Slashed KRW 635 million in agency service fees (for 9 cases)
078
079
Woori Asset Trust INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Woori
Asset
Management
Woori Asset Management is a comprehen-
sive asset management company offering
services in relation to fund management,
investment consulting, discretionary invest-
ment and more. On top of managing the two
major publicly offered bond funds, Woori
High Plus Bond Fund and SME High-Dividend
Stock-Type Fund, Woori Asset Management
has launched Woori High Plus Short-Term
Prime ESG and Woori Sustainable ESG Fund,
thereby leading the movement to incorporate
ESG into the asset management business.
Entrusted with discretionary funds from
various institutions including pension funds,
insurers, banks and mutual aid associations.
Woori Asset Management surpassed the
KRW 21-trillion mark in terms of assets un-
der management (AUM) in 2020.
2020 Performance
In 2020, Woori recorded KRW 6.9 billion net income, while managing
about KRW 21 trillion (net assets, based on the NAV), up a KRW 2
trillion from the previous year. In terms of AUM, its market share was
1.60%, a 0.03%p increase from 1.57% in 2019. Major changes include
an increase of KRW 1.9 trillion in MMF (62.9% YoY increase) and a
KRW 390 billion increase in fund of funds (813.1% YoY increase),
which contributed to a rise in AUM.
With nearly KRW 2 trillion drawn out from credit-oriented fixed-income
funds under poor market conditions, the situation became grim for
asset management companies including Woori Asset Management,
The Global Investment Management Unit launched a TDF product
The Global Investment Management Unit is working to boost AUM by
with BlackRock, an American multinational investment management
offering diverse products and implementing customer-specific strat-
corporation, in September 2020 and began offering an asset allocation
egies. As part of these efforts, it may launch a multi-asset fund using
solution that takes into consideration the timing of retirement. While
an investment management strategy in connection with the AI system
offering opportunities for institutional investors to seek absolute re-
of Woori Bank to meet the demands for overseas investment and
turns through multi-return funds, the Global Investment Management
retirement pension. Although the ETF market is already dominated by
Unit broadened its product lineup and strengthened its ability to pro-
key players in the industry, the company is reviewing the possibility of
vide investment solutions.
developing unique ETF products to enter the market.
but the credit market gradually stabilized with the flattening of the
2021 Plans
Market share (Unit: %)
COVID-19 curve and this led to KRW 1.8 trillion re-entering the market.
The Equity Investment Management Unit ESG Research Team in April
2020 in order to boost research and management capacity in relation
to responsible investment. The company has been chosen as an ESG
equity investment management company by a number of fund man-
agement institutions, such as Teachers Pension. With robust stock
research capacity and the introduction of the quant model, the equity
investment management process was improved resulting in excellent
performance. Among equity investment funds, the SME High-Dividend
Fund recorded high returns in 2020 and was thus chosen as the Do-
mestic Equity Investment Fund of the Year 2021 (award given in Feb-
ruary 2021 based on 2020 performance).
Woori Asset Management’s management objective is to switch from
a bond-centered portfolio into a more balanced portfolio. It aims to
diversify its products, engage in capacity building in relation to various
asset classes, forge cooperative ties with the affiliates of Woori Finan-
cial Holdings and increase the AUM from KRW 22.1 trillion in 2020
to KRW 25.8 trillion in 2021, a 16.7% YoY increase. Based on this, it is
projected that the operating income will rise 26.3% from KRW 840 mil-
1.57%
lion in 2020 to KRW 1.06 billion in 2021 and the net income will climb
22.3% from KRW 670 million in 2020 to KRW 820 million in 2021.
1.60%
YoY
+0.03%p
2019
2020
In order to achieve these goals, the Equity Investment Management
Unit is revamping its investment management processes by further
advising the SME stock investment management processes and in-
ternalizing the concept of ESG into its investment management policy.
The relevant organizations and investment management processes
underwent an overhaul to meet the demand for ESG practices among
institutional investors, while internal regulations were amended and a
responsible investment research team and related systems were set
in place to establish ESG-based investment processes. As a result,
Woori Asset Management was chosen as an ESG equity investment
management company by Teachers Pension, Yellow Umbrella Mutual
Aid Fund and others in the fourth quarter of 2020. The company will
continue to hone its ESG-based investment capabilities and release
related products so as to secure a competitive edge in the market.
The Fixed Income Investment Management Unit plans to absorb the
funds for short-term investment in the market by taking advantage of
and marketing short-term fixed-income investment and MMF prod-
ucts that can meet the growing demand for short-term money man-
agement amid interest rate hikes, abundant liquidity and a slowdown
in the stock market.
080
081
Woori Asset Management Korea Wealth Management Awards 2021 hosted by The Bell Woori SME High-Dividend Securities Investment Trust 1 (Eq-uity) chosen as the Equity Investment Fund of the Year at the Korea Wealth Management Awards 2021 hosted by The Bell (Feb. 24, 2021) INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Woori
Savings
Bank
www.woorisavingsbank.com
Woori Savings Bank is Korea’s leading finan-
cial institution serving the general public,
especially the working class. Its primary busi-
nesses are savings deposit accounts, install-
ment savings accounts and loans. The head
office is located on Namsa-ro in Cheongju,
Chungcheongbuk-do Province, and there are
four registered branch locations: Samseong,
Seocho, Suyu and Mullae. Woori Savings
Bank was incorporated as a sub-subsidiary
of Woori Financial Group in December 2020,
which became a stepping-stone to steady
growth.
2020 Performance
2021 Plans
In 2020, Woori Savings Bank established a management plan center-
Woori Savings Bank’s management objective for 2021 is to establish
ing on enhancing management efficiency through improved productiv-
a sustainable management environment by securing new growth en-
Handling of the Sunshine Loan and Saitdol(Cumulative)
ity and pursued stable asset growth based on stringent risk manage-
gines. To this end, it has set the following strategies: expand the foun-
(Unit: KRW in billion)
ment, rather than seeking a mere quantitative growth.
dation for growth and diversify the income portfolio; expand the digital
Assets
In the case of household loans, Woori Savings Bank reduced high-in-
terest assets and increased the weight of policy-oriented products,
including the Sunshine Loan, as a way to serve its inherent role to
serve the working class. As for corporate loans, it reduced precaution-
ary-and-below assets and increased assets centering on loans classi-
fied as normal.
Gains & Losses
In 2020, Woori Savings Bank minimized available funds by managing
new loans and repayment schedules and implemented a flexible inter-
est rate policy in an effort to minimize interest expenses by attracting
deposits from corporate customers. As a result, the interest expense
ratio was reduced 0.40%p from 2.61% in 2019. In addition to reducing
investments and unstable assets, such as high-risk assets, efforts
were made to increase the weight of loans in prime asset through cor-
porate finance and policy-oriented products, which helped improve the
interest margin by 0.26%p compared to 4.31% in 2019.
Risk Management
Woori Savings Bank enhanced its risk assessment capabilities by
upgrading and standardizing its risk assessment system in 2020. By
standardizing the risk assessment request form for corporate cus-
tomers, it was made possible to write concise reports focusing mainly
on key risks. This also helped eliminate unnecessary processes and
speed up the assessment procedure. Also, cross-assessments were
carried out on the products handled by the bank so as to boost the
capacity of the risk assessment officers. Efforts were also made to
improve profitability based on proactive risk management. A low-cost
credit assessment process was established by attracting customers
online, and an emergency response system was initiated in response
to COVID-19. A multi-offer system was introduced to maximize effi-
ciency and a multi-product assessment process was developed to
propose customers with products that are tailored to their individual
needs. As a result of these efforts, Woori Savings Bank was able to
outperform industry averages in managing assets, with a delinquency
ratio of 2.9% (industry average: 3.3%) and a sub-standard-and-below
ratio of 3.4% (industry average: 4.3%), as of the end of 2020.
infrastructure; improve management efficiency; proactively manage
risks and reinforce internal controls; and enhance its preparedness for
changes in the future.
866
675
In order to implement these strategies effectively, Woori Savings Bank
plans to discover new income sources, such as mid-range interest rate
loans and financial support for the New Deal policy, pursue capacity
building for core businesses, innovate digital services centering on
customer needs, set up an in-house computer network and remote
working system, create synergy with other subsidiaries of the Group,
boost efficiency by optimizing the cost structure, establish a preemp-
tive crisis analysis model and response system, sophisticate internal
controls and improve financial credibility, stabilize the organization by
internalizing the desired corporate culture and play a role as a depend-
able financial company.
2018
2019
2020
Prime Asset Ratio (Unit: %)
1096
YoY
+26.6%
(unit: %, KRW in millions)
96.5%
96.6%
Category
2019
2020
Change
(amount)
Loans in
Prime Asset
Balance
864.6
994.2
+129.6
Weight
96.5%
96.6%
+0.1%p
YoY
+0.1%
2019
2020
COVID-19 Support Activity
• In order to assist customers who have defaulted or are at risk of de-
faulting on their household debt due to financial hardships caused
by COVID-19, Woori Savings Bank has been implementing a house-
hold loan pre-workout program since April 2020. The program offers
relief to those who have taken out household credit loans through
payment deferrals (6 months or 12 months), contract extension or
renewal and refinancing.
KRW 1.4 billion
89 cases
082
083
Woori Savings BankINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 2020 Performance
Stable Financial Soundness
Woori Credit Information currently operates business with zero lever-
age and have been recording a surplus ever since its establishment.
In addition, it is financially sound and has the largest assets and the
2021 Plans
Woori Credit Information has set forth ‘Building the Foundation for
Growth, Improving Management Efficiency‘ as the management ob-
jective for this year. It intends to achieve this objective based on the
following management strategies:
lowest debt ratio (31.7%) among all credit information companies that
First, it is to ‘Expand the Income-generating Base.’
are operating under the wings of financial holding companies in Korea.
Category
Woori Credit Information
Company A
Company B
(Unit: KRW 100 million, %)
Debt-to-equity ratio
31.7%
63.8%
73.9%
Woori Credit Information will make every effort to boost sales in
non-collection areas and from non-affiliates and diversify the income
sources. Efforts will also be made to discover new income sources
by expanding the business portfolio to include an examination of the
rights and investigation into companies.
Second, it is to ‘Enhance Competitiveness in the Market.’
Woori Credit Information will concentrate on raising the recovery rate
in the collection business and lease income and hone its competitive
edge by improving the quality of its research reports.
www.wooricredit.com
Total assets
409
278
277
Woori
Credit
Information
Woori Credit Information boasts the longest
history of running debt collection, credit
investigation and asset management busi-
nesses in Korea. With the smallest liabilities
and largest assets among credit information
companies operating under financial holding
companies in Korea, Woori Credit Informa-
Highest Percentage of Revenue from Non-Affiliates
One measure of the sales capacity of credit information companies
affiliated with financial holding companies is the percentage of their
revenue generated outside the corporate group. Woori Credit Infor-
mation has proven its sales capacity with the highest percentage
Third, it is to ‘Innovate the Cost Structure.’
COVID-19 Support Activity
Efforts will be made to reduce operating costs by innovating the cost
structure through improved organizational, personnel and operational
efficiency and commission and fee structure.
Lastly, it is to ‘Strengthen Consumer Protection.‘
• Donated 10,000 face masks and 120 hand sanitizers to Jung-gu
Office in Seoul to support the local community in overcoming
the COVID-19 crisis
tion is known for its relatively stable financial
of revenue from non-affiliates in the industry. It has secured various
Woori Credit Information will promote debt relief for vulnerable groups
soundness. It has even reinforced its busi-
ness viability by forging relations with a wide
range of clients and recording a high level of
sales from non-affiliates. Woori Credit Infor-
mation will maintain its leading position in
the market based on vigorous sales capacity
and business management efficiency.
business partners outside the holding company and boosted revenue
in line with the government’s policy and strive to reduce complaints
by continuously expanding the scope of business through aggressive
from customers by collecting debt in compliance with relevant laws
marketing efforts.
and protecting consumers.
Category
Woori Credit Information
Company A
Company B
(Unit: %)
Percentage of
revenue from
non-affiliates
35.1%
21.3%
2.9%
Percentage of revenue from non-affiliates (Unit: %)
Debt-to-equity ratio (Unit: %)
35.1%
21.3%
2.9%
73.9%
63.8%
31.7%
Woori Credit Information
Company A
Company B
Woori Credit Information
Company A
Company B
084
085
Woori Credit Information2020 Corporate Social Responsibility AwardsAwarded for the fourth consecutive year in the social welfare category of the 9th Corporate Social Responsibility Awards 2020 organized by the Digital Chosun IlboINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Woori
Fund
Service
Woori Fund Service providing diverse administrative management services
for real estate investment companies and handling fund accounting and
reference price computation for collective investment vehicles. It has gained
trust from its clients and become a leader in the virtual asset market. It is
also regarded as a key player in the REIT administrative management service
industry, providing administrative management and accounting services for
REITs. The company successfully developed the next-generation system,
FundOne, in August 2014, and has been continually developing the system
and related human resources to offer better services.
Woori
Private
Equity Asset
Management
www.woorifs.co.kr
www.wooripe.com
The private equity market has seen steady growth, as major investors, including
pension funds, increase their alternative investments in response to diminishing
returns on traditional investments and private capital assumes a larger role in the
restructuring and M&A market. Woori Private Equity Asset Management, estab-
lished in October 2005, was among some of first private equity fund management
companies in Korea. In July 2016, the company expanded into management of
hedge funds in addition to its existing business of managing private equity funds
(PEF), thereby contributing to Woori Financial Group’s scale-out in the IB sector.
Woori Private Equity Asset Management will continue striving toward quantitative
and qualitative growth as a leader in PEF management by presenting the best in-
vestment value and realizing customer satisfaction.
Total AUM as of the end of 2020
2020 Performance
more than 130 trillion
Management in March 2020 after transferring data and upgrading the system for 6
Woori Fund Service commenced administrative management services for Woori Asset
YoY +45%
months from October 2019. In September 2020, it began offering the services to Woori
Global Asset Management and even attracted an investment pool of private pensions
in December 2020. As such, by providing services to asset management companies,
institutions, private equity management companies, REITs and more, it reached KRW 130
trillion in AUM, a 45% YoY increase, as of late 2020. Moreover, the Management Direction
Forwarding Service was developed to eliminate the risks associated with reference price
computation, making it possible to manage the entire process in which management
directions are sent from the asset management company to the administrative manage-
ment company, and a patent application has been filed in Korea.
2021 Plans
In March 2021, Woori Fund Service signed an agreement to jointly develop a platform for
corporate accounting for digital assets designed to provide virtual asset accounting ser-
vices to corporate members with Peertec, the operator of a virtual asset exchange called
GDAC.
The Platform for Corporate Accounting for Digital Assets is a total IT solution enabling
management of the entire process concerning digital assets in the client’s possession
or management. Woori Fund Service has become the first in the industry to begin devel-
oping a system facilitating accounting for virtual assets with plans to finish developing
a computer system in the first half of 2021 and launching the service in the second half.
The key to providing administrative management services for digital assets for corporate
customers is to provide assistance based on convenience and reliability. By adopting the
digital asset accounting solution, companies can view and be issued accounting data,
transaction certifications, balance certificates, management directions and various other
evidentiary documents concerning virtual assets that have been verified by a third party,
through which they can handle digital assets legitimately. They can also use the solution
for internal and external reports, decision-making, submission of required documents to
public agencies and financial institutions, accounting, tax filing and reporting, etc.
2020 Performance
Woori Private Equity Asset Management achieved quantitative and qualitative growth by
discovering and pursuing various investments with the intention of emerging as an industry
leader by delivering maximum value to investors and achieving customer satisfaction.
Entrusted to manage the assets of KDB and Korea Growth Investment Corp, the company
had its PEF Department create two blind funds, one at the end of 2018 (Woori-Shinyoung
Growth-Cap Private Equity Fund I, KRW 163 billion) and another in May 2019 (Woori-Q Corpo-
rate Restructuring Private Equity Fund, KRW 155.1 billion), from which it discovered excellent
investment opportunities and made five investments amounting to KRW 131.1 billion in 2020.
Woori-Shinyoung Growth-Cap Private Equity Fund I, in particular, achieved remarkably quick
investment execution performance with the capital commitment ratio reaching 77.5% in just
two years after its establishment, and the investment returns were maximized by building an
excellent portfolio.
The Asset Management Department, on the other hand, ventured out of mainly investing in
domestic SOC projects and expanded into the overseas development infrastructure, overseas
real estate and innovative growth support funds, further boosting its profitability. In 2020, new
funds amounting to KRW 162.1 billion, including Innovative Growth Support No. 2, were es-
tablished for a total of KRW 1,359.3 billion in capital commitment for all funds to date.
Successful Investments by the PEF Department
The PEF Department manages three funds, as of the end of 2020, with a total capital commit-
ment of KRW 361.6 billion.
In 2020, the primary focus was on executing additional investments for the two existing blind
funds and meticulously managing investments to better deal with the domestic and inter-
national economic situations devastated by COVID-19. In the case of the Woori-Shinyoung
Growth-Cap Private Equity Fund I, the company achieved excellent performance, with the cap-
ital commitment ratio reaching 77.5% in just two years of its establishment, which was made
possible by selectively investing in companies with technological prowess and growth poten-
tial, such as global game developers, electric vehicle parts manufactures and semiconductor
and wafer manufacturers.
086
087
Woori Fund ServiceWoori Private Equity Asset ManagementINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Proactive management of risk factors associated with domestic
and international business environments in relation to COVID-19 and
Total Capital Commitment in PEF
KRW 3.6trillion
Total Accumulated Commitments Reachin in Alternative
Investment
KRW 13.6 trillion
aggressive value-up activities targeting invested enterprises led to
a remarkable improvement in performance of the enterprises in the
portfolios. For some of the portfolios, investments were recovered in
2020, through which a gross IRR of 15% was recorded.
Diverse Investments Characterized by Stability and Profitability
The Alternative Investment Department manages 17 funds, as of the
end of 2020, with accumulated commitments reaching KRW 1,359.3
billion in total. 2020 was a tough year due to a downturn in the global
business environment triggered by the outbreak of COVID-19, which in
turn led to difficulties in discovering new investment opportunities. De-
spite these circumstances, the company established new funds with
a size of KRW 162.1 billion, including Innovative Growth Support No. 2,
in 2020 by continually exploring excellent investment opportunities at
home and abroad. Woori Global Power Generation Infrastructure Syn-
ergy Fund, established as a USD 80 million fund in 2019, was trans-
ferred USD 65 million, accounting for 81.3% of the commitments, as
of the end of 2020. It is also worth noting that the company has never
suffered any investment losses since day one, as a result of fastidious
pre- and post-investment risk management practices.
2021 Plans
Woori Private Equity Asset Management plans to achieve quantitative
and qualitative growth in 2021, with the aim of emerging as a leading
asset management company in the industry known for delivering the
best value to investors based on innovation and efficiency. The PEF
Department, in particular, will maximize returns by enhancing the val-
ues of enterprises contained in the portfolios of the two blind funds,
while making additional investments to achieve the best possible
results. In addition, it will consolidate its position as a key player in the
domestic PEF market by pushing ahead to foster another blind fund of
around KRW 200 billion in volume by attracting investments from ma-
jor institutions. The Alternative Investment Department, on the other
hand, plans to increase assets under its management by discovering
new investment opportunities in infrastructure and real estate at home
and abroad, in addition to ensuring excellent investment performance
through stringent follow-up management of its current investments.
The department will create a new fund amounting to around KRW 250
billion, which will bring the commitments to a total of KRW 1.6 trillion
by 2021, and continue playing an important role as a long-tern income
generator by managing risks and discovering excellent businesses.
Woori
Global
Asset
Management
www.wooriglobalam.com
Woori Global Asset Management, which started off as Allianz Global Investors, has
emerged as a global asset management company managing about KRW 8.4 trillion
in assets, as of the end of 2020. Woori Global Asset Management became an af-
filiate of Woori Financial Group in August 2019 and broadened its business scope
from stocks, bonds and overseas fund of funds, the company to include alternative
investments by establishing the Global Investment Unit and Alternative Investment
Unit to handle investments in infrastructure, real estate and acquisition financing.
Woori Global Asset Management believes that the best way to gain a competitive
edge in the market begins by truly understanding the big picture. The company
leaves no stone unturned in doing its utmost to fully understand the needs of both
the market and its customers, and based on the solid foundation and global net-
works of the Woori Financial Group, it presents customers with best-in-class man-
agement competencies and competitive investment solutions.
Total AUM as of the end of 2020
2020 Performance
Domestic Equity
8.4
KRW trillion
In 2020, the Domestic Equity Investment Department renewed Woori G Active SRI Securities
Investment Trust under its management since 2008 into Woori G Korea ESG Securities In-
vestment Trust to meet the demand for ESG investment. Woori Global Asset Management
was also chosen as an asset management company by three institutions in recognition of its
improved equity investment management performance.
Overseas fund
In 2003, Woori Global Asset Management launched the very first overseas fund of funds in
Korea that was based on the advanced asset management methodology of the German Alli-
anz Group. Since then, the company has been launching multi-asset funds in partnership with
leading asset management companies and diversifying its product lineup.
Alternative Investment
The Alternative Investment Department managed to overcome tremendous obstacles such
as the pandemic and PEF issues and successfully made deals in real estate, PF, new and re-
newable energy, PE investment and acquisition financing at home and abroad. As a result, the
total commitments in alternative investment funds climbed to around KRW 3 trillion. This has
been reviewed as a testament to the quantitative growth of the company as well as its quali-
tative growth in that it created synergy with the Group and secured competitiveness at home
and abroad.
088
089
Woori Private Equity Asset ManagementWoori Global Asset ManagementINTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 2021 Plans
Global and Alternative Investments
Amid increased market volatility, Woori Global Asset Management
In the case of global and alternative investments, the goal is to be-
aims to provide investment products providing steady income based
come an overseas fund management company trusted by customers
on specialized and accurate in-house research and investment man-
by forging strategic partnerships with reputable asset management
agement system as well as cutting-edge risk and compliance monitor-
companies overseas and enhancing management of the launched
ing systems.
As an affiliate of Woori Financial Group, Woori Global Asset Manage-
ment will strive to present the best investment solutions to all individ-
ual, corporate and institutional customers of the Group and generate
synergy with other Group affiliates through aligned business opera-
tions, combined product development and more.
products and communication with customers. Furthermore, based on
its global network in relation to alternative investments, the company
will develop various alternative investment instruments in domestic
and overseas real estate, infrastructure, aircraft financing and acquisi-
tion financing, in addition to its existing product lineup of equity invest-
ment funds and fixed-income fund of funds.
Woori
Finance
Information
System
Woori FIS is a subsidiary responsible for total IT outsourcing of major players of
Woori Financial Group, including the holding company, banks and card company.
Serving as the IT backbone of the Group, Woori FIS is providing the necessary
support for the Group to be prepared against changes in the financial business
environment where digital technology and non-face-to-face services are becom-
ing increasingly more important. It is also concentrating its efforts to bring upon
innovation across the organization, personnel, processes, system architecture
and more so that Woori Financial Group can attain its strategic objectives from
stable operation of the core systems of Woori Bank and Woori Card and attain-
www.woorifis.com
ment of digital transformation.
Set up the Infrastructure New Deal Fund
In 2020, Woori Global Asset Management set up the Infrastructure
New Deal Fund, the first of its kind in the financial sector, and through
this product, it will invest in smart logistics facilities, smart transporta-
tion facilities and the like. This year, the company plans to uphold the
New Deal policy and launch a series of Infrastructure New Deal Fund
products in line with the structural reform marked by a transition into a
digital economy and an eco-friendly economy.
Equity Investment Management
The Equity Investment Management Department analyzes the fun-
damentals and value of companies based on in-house research with
mid- and long-term results that exceed the benchmark. Meanwhile,
competitive asset management and risk management systems are
being set up in order to achieve steady returns from domestic stock
funds and SME stock funds. In addition, the company will increase
ESG investment by introducing the stewardship code and reinforcing
the CSR-related investment management system.
Fixed-income investment
As for fixed-income investment, efforts will be made to build a system
that can further stabilize asset management and achieve outstanding
risk-adjusted returns. In the case of discretionary investment, the com-
pany will bolster collaboration with the marketing unit in order to boost
AUM and ensure reliable investment management to increase the net
asset value of MMFs.
Top 3 Management Strategies in 2021
2020 Performance
Fine
Operation of High-quality IT
Impression
IT Development for Customer
Satisfaction
Soar-Up
Pursuit of IT of the Future
In 2020, Woori FIS pursued three management strategies, ‘[Stability] Uninterruptible, High-in-
tegrity IT Operation,’ ’[Innovation] Continued System, Process and Staff Management Inno-
vations’ and ‘[Expansion] Expansion of the IT-Biz Convergence,’ in order to achieve the man-
agement objective of ‘IT-Biz Convergence.’ An application Monitoring System was set up for
system stability, and system failures were prevented for 140 consecutive days through the
Clean Road Failure-Free Campaign, which helped dramatically lower the frequency of system
failure. In addition to innovating IT service processes from the customer perspective, Woori
FIS initiated a customer pre-proposal system and put 315 pre-proposals into action, as part of
its efforts to transform from a passive developer to a proactive business partner. In order to
provide uninterrupted IT services even in the midst of a pandemic, a COVID-19 emergency re-
sponse headquarters was established to create a companywide response system. Staff from
different business units were separated and employees were permitted to work from home,
if necessary, as a way to contain the spread of the disease in the event that a confirmed case
was reported within the company.
2021 Plans
The management objective for the year 2021 has been set forth as ‘Future Creator.’ To
achieve this, Woori FIS will undertake a number of tasks to implement three management
strategies: ‘Operation of High-quality IT, ‘IT Development for Customer Satisfaction’ and ‘Pursuit
of IT of the Future.’ Main tasks include enhanced system monitoring for stable IT operation,
expansion of the data center, establishment of digital architecture for flexibility in digital devel-
opment, an increase in AI-based service support, creation of an on-time corporate customer
support system, creation of IT cloud, fostering of digital development manpower and creation
of an ecosystem for new businesses. Through these efforts, Woori FIS will serve as a reliable
IT and digital partner of Woori Financial Group and dedicate itself to bolstering the Group’s
competitiveness in every business area.
090
091
Woori Global Asset ManagementWoori Finance Information SystemCreated a New Deal fund for infrastructure amounting to KRW 200 billion Invested in various types of infrastructure including smart logistics centers, data centers, renewable energy complexes including wind and solar farms, hydrogen fueling stations, etc. INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 FINANCIAL
REVIEW
094
Management’s Discussion and Analysis
124
Separate Financial Statements
184
Consolidated Financial Statements
353
Global Network
Woori
Finance
Research
Institute
www.wfri.re.kr
Woori Finance Research Institute (WFRI) was established in 2012 with the
vision of becoming ‘Korea’s best think-tank specializing in finance and an in-
sight provider that spearheads financial development.’ In order to effectively
facilitate decision-making for the management, WFRI conducts in-depth re-
search across all aspects of management strategies of financial companies
and the economy and financial markets. The institute has successfully posi-
tioned itself as an opinion leader in the financial industry of Korea by sharing
research results with customers, the authorities and financial market partici-
pants.
2020 Performance
COVID-19 Support Activity
• Supervised market sensing processes in
risk management of the Group Emergency
Management Committee
As an in-house consulting organization supporting Woori Financial Group in its endeavors
to become the No.1 financial group, WFRI has been publishing an increasing number of
reports each year, with 357 reports issued in 2020 to present its outlook for the Group
in relation to the macroeconomic and financial market indicators. The institute provided
internal consulting to subsidiaries, offered support in expanding the business portfolio
• Published 197 daily reports on economic
of the Group, published ‘Woori Research Plus’ and ‘Woori Financial Group CEO Binder,’
and financial situations at home and abroad
periodicals designed to promote the utilization of research reports and organized lectures
in relation to the COVID-19 pandemic
by the advisory committee and external experts for qualitative improvement of research
Number of Published Report
197
reports. In 2021, for the purpose of reinforcing its role as a consultant that enhances the
Group’s competitiveness, WFRI will take on five management tasks: strive for qualitative
and quantitative improvement of its reports; provide improved consulting to subsidiaries
and the global network; increase research to pave the foundation for the Group to grow
and achieve digital innovation; hone its competencies in economic and financial risk anal-
ysis and forecasting; and lay the groundwork for ESG management research and devel-
opment of a knowledge platform.
Global
Leading Insight
Provider
Best Financial Think Tank in Korea
Research on business
strategies of financial
institutions
Research on
financial policies and
regulations
Research on the global
financial market and
financial industry
Analysis of domestic
and international
economic trends
092
093
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
MANAGEMENT’S DISCUSSION AND ANALYSIS
Key Management Indicators
1. Disclaimers on Forecast Information
Activities, events or phenomena that are expected and predicted to occur in the future in this annual report for Woori Financial Group Inc. reflect the
company’s thoughts and opinions on the events and financial performance at the time when this document was prepared for disclosure in the same term.
The forecast information is based on diverse assumptions associated with the future business environment, and, consequently, such assumptions may be
judged to be inaccurate in the future. Moreover, the assumptions include risks, uncertainties and other factors that might cause critical differences between
estimated outcomes in the forecast information indicated here and the actual outcomes. Factors that might induce such critical differences encompass
factors related to internal corporate management and those related to the external environment, and include other wide-ranging factors.
Woori Financial Group has no obligation to disclose a revised report with corrections on matters prescribed in the forecast information in order to reflect
risks or uncertainties that might occur after the preparation of the forecast information.
In conclusion, Woori Financial Group cannot confirm the realization of expected results or matters forecast by the Group or the occurrence of any impacts
projected in this business report. Forecast information prescribed in this report is current as of the time the report was prepared. Please note that Woori
Financial Group has no plan to provide updates on such risk factors or forecast information. Furthermore, it should be noted that even under such
circumstances, the forecast data shall not be used as evidence for legal responsibility regarding investment outcomes for customers.
2. Overview
2020 was a difficult year for the entire world, including Korea, due to COVID-19. Most countries recorded negative growth due to an economic downturn
triggered by the pandemic, and Korea, in particular, saw a decline in private consumption and exports, resulting in a 1% y-o-y decrease in real GDP, even
though government spending and investment in plants and equipment were up from the previous year. In an effort to boost the economy, the Bank of
Korea and other central banks across the world slashed base rates, which in turn increased volatility in financial markets.
Despite the challenges faced at home and abroad, Woori Financial Group sought opportunities for growth in 2020 marking its second anniversary. As a
result, it successfully acquired Aju Capital and Aju Savings Bank in the fourth quarter of 2020 in order to gain a stronger foothold in non-banking sectors
and strengthen the Group. Such diversification of the business portfolio will not only lead to improved financial performance but also allow the Group fulfill
its corporate social responsibility even better by providing financial services to a wider range of customers, including SMEs and vulnerable groups.
With respect to its financial performance, Woori Financial Group earned KRW 1.3 trillion in net income in 2020, based on the consolidated financial
statements. This was due to the creation of reserves for COVID-19 response and PE funds (approx. KRW 500 billion) in reflection of potential costs in a
time of uncertainty. If such one-time costs are excluded, the financial performance in 2020 is comparable to that of the previous year.
Although the business environment was generally unfavorable due to the global economic slowdown caused by COVID-19, Woori Financial Group made
consistent efforts to improve the profit structure based on asset growth and an increase in deposit savings and, as a result, generated KRW 6.0 trillion in
interest income, a 1.8% y-o-y increase. With the base rate reduced twice in 2020, the annual NIM dropped 0.13%p compared to the previous year, but it is
expected to rebound in 2021, as market interest rates are projected to steadily rise as economic activity becomes normalized in major countries.
As for asset soundness, Woori Financial Group is among the industry’s best with an NPL ratio of 0.42% and a default rate of 0.27%. This is an achievement
made possible with the management’s strong commitment to ameliorate the asset portfolio and carry out businesses based on risk management. In 2020,
reserves were created to be prepared for future uncertainty, and asset soundness will be managed within the controllable extent, even if the economy stays
sluggish longer than expected or bad debt expenses rise in the process of economic recovery.
In the case of the capital adequacy ratio, approval was obtained from the supervising agency in June for a part of the internal ratings-based approach and
the final set of Basel III reforms was quickly introduced to improve the BIS ratio to about 14% and the capacity to deal with uncertainties in the financial
environment. It is expected that additional approval of the internal ratings-based approach will further boost the capital adequacy ratio.
As structural reforms continue in the financial industry with the application of new digital technologies, zero contact services are predicted to become
the next normal. Kakao Bank’s steady growth, the launch of Toss Bank and the growth of other online banks are the latest threats to traditional banks. In
response, Woori Financial Group came up with the vision of Digital for Better Life in 2020 in order to pursue digital innovation at an accelerated rate and
created a digital system by establishing a digital control tower and more. In 2021, efforts will be made to emerge as a digital leader in the financial industry
by creating a MyData ecosystem, strengthening cooperation with the leaders of the future, collaborating with BigTech companies and expanding its
external networks.
Also, the stagnant growth of the domestic financial market has made it necessary to diversify income sources by expanding into overseas markets.
In recognition of this, Woori Financial Group, which boasts a global network of 473 branches in 23 countries as of late 2020, has been developing new
markets through various efforts, such as the mergers of the subsidiary in Cambodia and expansion of the network in Vietnam. By strengthening global
business operations to improve the profit structure, Woori Financial Group recorded a 19% y-o-y increase in total assets in global operations, which are now
contributing more than 10% to the total income. Going forward, the company will promote its retail business in the rapidly growing digital financial market in
Southeast Asia and pursue qualitative growth based on stringent risk management, which involves checking for signs of non-performing assets and so on.
094
Category
B/S
Total Assets (Including AUM)
Total Assets (Excluding AUM)
Loans in KRWNote 1)
Net Interest Income
Net Fees & Commissions Income
Other Operating Income
I/S
Operating Income
Net Income
Net Income Attributable to Non-
Controlling Interests
Net Income Attributable to
Controlling Interests
ROA
Including Non-Controlling Interests
Excluding Non-Controlling Interests
Management Indicators
ROE
Including Non-Controlling Interests
Excluding Non-Controlling Interests
NPL Ratio
BIS Total Capital RatioNote 2)
2020
525,919
399,081
249,889
5,999
1,014
△976
2,080
1,515
208
1,307
0.40
0.34
6.80
5.87
0.42
13.84
(Unit: KRW in billions, %)
2019 Change (amount)
Change (%)
473,794
361,981
221,687
5,894
1,103
△430
2,800
2,038
165
1,872
0.57
0.52
10.11
9.29
0.45
11.89
52,125
37,100
28,202
105
△89
△546
△720
△523
43
△565
△0.17
△0.18
△3.31
△3.43
△0.03
1.95
11.00
10.25
12.72
1.78
-8.07
-
-25.71
-25.66
26.06
△30.18
-
-
-
-
-
-
Note 1) Based on consolidated financial statements
Note 2) BIS capital adequacy ratio: Based on the internal ratings-based approach at the end of 2020 and based on the standard approach at the end of 2019
Note 3) Net fees and commissions income: Fees and commissions income in KRW + Note 4) Other operating income: gain (loss) on insurance + gain (loss) on Valuation &
Disposition of Securities + gain (loss) on Valuation and Disposal of Loan + gain (loss) on foreign exchange + gain (loss) on derivatives + provision for/reversal of credit
loss reserve + provision for/reversal of allowances + dividend income and commissions income in foreign currency + fees and commissions income related to credit
cards + fees and commissions income related to securities + fees and commissions income related to leases + fees and commissions income related to brand usage
+ fees and commissions income related to trust
Note 4) Other operating income: gain (loss) on insurance + gain (loss) on Valuation & Disposition of Securities + gain (loss) on Valuation and Disposal of Loan + gain (loss) on
foreign exchange + gain (loss) on derivatives + provision for/reversal of credit loss reserve + provision for/reversal of allowances + dividend income
3. Financial Position & Business Performance
A. Financial Position & Business Performance
(1) Growth
■ Woori Financial Group Inc.
Category
Total Assets (Including AUM)
Total Assets (Excluding AUM)
Loans in KRW
Loans in Foreign Currency
Marketable Securities
Credit Card Receivables
At End-2020
At End-2019
Change (amount)
Change (%)
(Unit: KRW in billions, %)
525,919
399,081
249,889
28,029
55,179
8,543
473,794
361,981
221,687
26,206
53,764
8,399
52,125
37,100
28,202
1,823
1,415
144
Note 1) Based on Group consolidated financial statements
Note 2) Loans in KRW: Inclusive of inter-bank loans
Note 3) Loans in Foreign Currency: Loans in foreign currency + domestic import usance bills + bills bought, inter-bank loans in foreign currency
Note 4) Marketable Securities: Marketable securities + investment in subsidiaries + marketable securities credit loss reserve
11.00
10.25
12.72
6.96
2.63
1.71
095
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 The total assets (incl. AUM) of the Group, as of the end of 2020, amounted to KRW 525.9 trillion, KRW 52.1 trillion (11.0%) higher compared to the previous
year. Major factors contributing to the increase were an increase of KRW 28.2 trillion in loans in KRW, an increase of KRW 15.0 trillion in the AUM of
subsidiaries, and the impact of the newly incorporated subsidiary, Woori Financial Capital (KRW 8.9 trillion). The loans in KRW stood at KRW 249.9 trillion,
loans in foreign currencies at KRW 28.0 trillion, and marketable securities at KRW 55.2 trillion, as of the end of 2020.
※ Total Assets (Incl. AUM) of Major Subsidiaries
Category
Group
Woori Bank
Woori Card
Woori Financial Capital
Woori Investment Bank
Woori Asset Trust
Woori Asset Management
Woori Credit Information
Woori Fund Service
Woori PE
Woori Global Asset Management
Woori FIS
Woori Finance Research Institute
At End-2020
At End-2019
Change (amount)
Change (%)
(Unit: KRW in billions, %)
525,919
435,066
11,367
8,880
4,332
35,655
21,284
41
19
1,049
8,492
97
7
473,794
403,914
10,087
-
3,399
27,651
19,248
38
17
811
8,696
91
5
52,125
31,152
1,280
8,880
933
8,004
2,036
3
2
238
△204
6
2
11.00
7.71
12.69
-
27.45
28.95
10.58
7.89
11.76
29.35
△2.35
6.59
40.00
Note 1) Woori Bank: Based on consolidated financial statements, Woori Financial Capital: Based on consolidated financial statements, newly incorporated into the Group in 2020
■ Woori Bank
Category
Total Assets
Loans in KRW
Corporate Loans
Household Loans
Public and Other Loans
2020
2019
End of the (current)
187th term
End of the (previous)
186th term
374,310
241,356
107,798
130,353
3,204
348,182
219,910
97,080
119,720
3,110
(Unit: KRW in billions)
Change (amount)
Change (%)
26,129
21,445
10,718
10,632
95
7.50
9.75
11.04
8.88
3.04
Note) Based on consolidated financial statements of Woori Bank
As of the end of 2020, the total assets of Woori Bank, based on consolidated financial statements, amounted to KRW 374.3 trillion, a KRW 26.1 trillion
(7.50%) increase year-over-year. The main driver was the growth of loans in KRW by KRW 21.4 trillion (or 9.75%) y-o-y. Meanwhile, corporate loans
increased by KRW 10.7 trillion and household loans by KRW 10.6 trillion, with each asset category assuming a similar share out of total as the year before.
Woori Bank will continuously implement balanced asset growth strategies in 2021, taking into account risk management and profitability.
■ Financial Information of the Major Subsidiaries
Category
Woori Card
Asset
Liability
Equity
Asset
Woori Financial Capital
Liability
Equity
Asset
Woori Investment Bank
Liability
Equity
096
At end-2020
11,366,594
9,312,985
2,053,609
8,880,117
8,053,840
826,277
4,332,474
3,803,594
528,880
At end-2019
10,087,342
8,299,175
1,788,167
7,473,168
6,659,178
813,990
3,398,960
3,031,622
367,338
(Unit: KRW in millions)
At end-2018
9,987,400
8,305,436
1,681,964
6,201,432
5,449,071
752,361
2,682,660
2,367,418
315,242
Category
Woori Asset Trust
Woori Asset
Management
Asset
Liability
Equity
Asset
Liability
Equity
Asset
Woori Savings Bank
Liability
Equity
At end-2020
At end-2019
At end-2018
185,633
56,396
129,237
118,121
5,133
112,988
1,196,633
1,086,581
110,052
139,839
45,410
94,429
112,781
6,017
106,764
1,110,597
1,011,809
98,788
113,786
37,333
76,453
101,536
3,824
97,712
1,084,596
997,390
87,206
Note) Woori Card/Woori Financial Capital/Woori Investment Bank: Based on K-IFRS consolidated financial statements, Woori Asset Trust/Woori Asset Management: Based on
separate financial statements (K-IFRS), Woori Savings Bank: Based on K-GAAP
As for Woori Card, the total assets increased by about KRW 1.3 trillion year-over-year as a result of an increase in financial assets and auto loans.
Credit card usage is increasing, driven by a growing membership pool, aligned business with Woori Bank and a bold entry into the simple payment market.
Woori Card also continues to expand its financial assets (long-term card loan) based on high-value customers. In addition, as part of efforts to develop
new businesses to diversify the revenue base, Woori Card has been operating installment, lease and credit loan businesses since 2016, while continuously
expanding its sources of long-term income within the regulatory leverage ratio (800%) of credit card companies.
Woori Financial Capital saw an 18.8% y-o-y growth in total assets to KRW 8.9 trillion, based on the consolidated financial statements, as of the end of 2020.
As a result of improved fundamentals and incorporation into the Woori Financial Group as a subsidiary, Woori Financial Capital saw its long-term credit
rating climb two steps (A0 → A+ → AA-) between 2019 and 2020, and this made it possible to raise funds at lower interest rates. This in turn has allowed
the company to improve its competitiveness and secure new accounts, thereby gaining more assets. It is working to diversify its business portfolio to
include personal finance and corporate finance in addition to car financing, the area where it has traditionally been strong in. There are plans to produce
synergy with other affiliates and hone its competitive edge based on digital finance.
As of the end of 2020, Woori Investment Bank has KRW 4.3 trillion in total assets, a KRW 1 trillion (27.5%) increase from the previous year, based on the
consolidated financial statements. This was achieved by pursuing credit transactions in connection with Woori Bank and gaining more credit transaction
users in good standing according to the credit business expansion plan, which resulted in an increase of KRW 280.1 billion (23.2%) in loans in KRW. Also,
public bonds and financial bonds climbed KRW 374.9 billion (66.8%) as a result of full-fledged commencement of bond management. Woori Investment
Bank will continue to roll out balanced asset growth strategies, taking into account risk management and profitability.
At the end of 2020, Woori Asset Trust recorded KRW 185.6 billion in total assets, up KRW 45.8 billion (33%) from the previous year, and managed KRW
35.5 trillion in terms of AUM, a KRW 7.9 trillion increase. In 2020, due to the reinforced regulations against real estate speculation and economic slowdown
caused by COVID-19, there was a sharp increase in bad debt expenses due to a decline in the profitability of income-generating real estate properties, along
with growing risks. As a result, loan-type land trusts, where the trust companies raise the money themselves, saw stagnant growth, whereas management-
type land trusts with guaranteed construction completion saw increased growth, as growing importance began to be placed on the inherent objective of
trusts to protect the trust property.
In 2020, the company expanded into the managed land trust market with improved credibility as a subsidiary of Woori Financial Group and, at the same
time, entered the small-scale renewal project market in the Seoul Capital Area, through which it recorded an increase in sales. With the management
objective to secure a competitive advantage in real estate rusts based on stability and innovation-driven growth in 2021, Woori Asset Trust will discover
mid-risk, high-return development projects to bolster its competitiveness and continually win contracts for small-scale renewal projects. It will also
consolidate the foundation for stable business operations by producing synergy with the affiliates of the Group and pursue stability in the future by
launching new products after obtaining a license as a REIT AMC and more.
At the end of 2020, Woori Asset Management managed KRW 21.1 trillion, a 10.5% y-o-y increase, in terms of net asset value (NAV). In the first half of 2020,
the AUM temporarily declined due to an outflow of money from fixed-income funds comprised of mainly corporate bonds and an increase in credit spread
due to COVID-19. However, the quantitative easing policies of countries around the world help stabilize financial markets, including the credit market, in
the second half, and as a result, the company achieved recovery in AUM in relation to fixed-income products. Also, the increased money supply flowed
into short-term finance markets causing a rise in AUM in relation to short-term financial products. While market volatility is still high, in consideration of
the continued implementation of quantitative easing policies, new products will be added to a lineup of MMFs, index funds, EMPs and more to attract
institutional investment and PE funds. The company has set a goal to boost AUM by KRW 3.3 trillion in 2021. To this end, it is working to diversify new
sales channels, build a non-face-to-face service infrastructure, expand the product lineup, upgrade the ESG management processes, strengthen risk
management and produce synergy with other affiliates of the Group. There are plans to be prepared for small OCIO according to the changes in the
retirement pension market and review the possibility of entering the ETF market.
Woori Savings Bank has achieved KRW 1,196.6 billion in total assets, an KRW 86.0 billion (7.7%) increase from the previous year, based on an increase
in prime household loans, prime SME loans and Sunshine Loan. Household loans in KRW rose KRW 42.6 billion due to an increase in credit loans and
Sunshine Loan, while corporate loans increased KRW 90.6 billion due to balanced growth centering on SMEs in good standing.
097
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 (2) Profitability
■ Woori Financial Group Inc.
Category
Net Interest Income
Net Fees and Commissions Income
Other Operating Income
General and Administrative Expenses
Operating Income
Non-Operating Income (Expense)
Net Income before Income Tax Expense
Income Tax Expense
Gain (Loss) on Discontinued Operations
Net Income
Total
Net Income Attributable to
Non-Controlling Interests
Net Income Attributable to
Controlling Interests
2020
5,999
1,014
△976
3,956
2,080
△79
2,001
486
-
1,515
208
1,307
(Unit: KRW in billions, %)
Change (amount)
Change (%)
105
△89
△546
190
△720
△2
△722
△199
-
△523
43
△565
1.78
△8.07
-
5.05
△25.71
-
△26.51
△29.05
-
△25.66
26.06
△30.18
2019
5,894
1,103
△430
3,766
2,800
△77
2,723
685
-
2,038
165
1,872
Note 1) Net fees and commissions income: Fees and commissions income in KRW + fees and commissions income in foreign currency + fees and commissions income
related to credit cards + fees and commissions income related to securities + fees and commissions income related to leases + fees and commissions income related
to brand usage + fees and commissions income related to trust
Note 2) Other operating income: gain (loss) on insurance + gain (loss) on Valuation & Disposition of Securities + gain (loss) on Valuation and Disposal of Loan + gain (loss) on
foreign exchange + gain (loss) on derivatives + provision for/reversal of credit loss reserve + provision for/reversal of allowances + dividend income
Woori Financial Group generated KRW 1,515 billion (KRW 1,307 billion based on controlling interests) in net income in 2020. This was a y-o-y decline
of KRW 523 billion, attributable to the reserve created for COVID-19 response and an increase in selling and administrative expenses due to increased
voluntary retirement benefits.
The net interest income stood at KRW 5,999 billion, an increase of KRW 105 billion from the previous year achieved despite two interest rate cuts (March
and May 2020) thanks to asset growth and an increase in low-cost deposit savings. As a result, it helped offset a decrease of KRW 89 billion in the net fee
and commission income.
As for the other operating income and loss, △ KRW 784 billion out of △ KRW 976 billion is attributable to the bad debt expenses (+ KRW 410 billion), while
the selling and administrative expenses y-o-y increased of KRW 190 billion to KRW 3,956 billion.
The operating income stood at KRW 2,080 billion, while the net income attributable to non-controlling interests includes the dividends for hybrid securities
issued by Woori Bank (KRW 162 billion).
※ Net Income of Each Affiliate
Category
Group
Woori Bank
Woori Card
Woori Financial Capital
Woori Investment Bank
Woori Asset Trust
Woori Asset Management
Woori Credit Information
Woori Fund Service
Woori PE
Woori Global Asset Management
Woori FIS
Woori Finance Research Institute
098
2020
1,515
1,370
120
△30
63
35
7
2
3
1
△1
2
0
(Unit: KRW in billions)
Change (amount)
Change (%)
△523
△536
6
△30
10
35
5
0
1
3
△0
△1
△0
△25.66
△28.12
5.26
-
18.87
-
250.00
10.70
50.00
-
-
△33.33
△34.81
2019
2,038
1,906
114
-
53
-
2
2
2
△2
△1
3
0
Note 1) Net income: Based on total net income (KRW 1,307 billion attributable to the controlling interests + KRW 208 billion attributable to the non-controlling interests for the Group)
Note 2) Woori Bank: Based on separate financial accounts + foreign subsidiaries in 2019 and consolidated financial statements in 2020
Note 3) Woori Financial Capital: Performance over 3 months (October to December) after being incorporated into the Group in 2020, based on the consolidated financial
statements (incl. Woori Savings Bank; △ KRW 39 billion in goodwill amortization in relation to Woori Savings Bank)
Note 4) Woori Asset Management and Woori Global Asset Management: Performance over 5 months after being incorporated into the Group in 2019
■ Woori Bank
Category
I. Operating Income
Net Interest Income
Non-Interest Income
Net Fees and Commissions Income
Securities Income
Net Gain (Loss) on Disposal of Financial Assets at Amortized Cost
FX/Derivatives/Other Operating Income
Impairment Losses Due to Credit Loss
General and Administrative Expenses
II. Non-Operating Income (Expense)
III. Net Income before Income Tax Expense
IV. Gain (Loss) on Discontinued Operations
V. Income Tax Expense
VI. Net Income
Net Income Attributable to Controlling Interests
Based on consolidated financial statements
Note) Based on consolidated financial statements
2019
(Current) 187th term (Previous) 186th term
2020
(Unit: KRW in billions)
Changes
1,926
5,291
717
846
166
18
△314
△535
△3,547
△138
1,788
-
418
1,370
1,363
7
2,592
5,317
887
972
214
84
△383
△118
△3,494
52
2,644
△471
645
1,527
1,506
22
△666
△26
△170
△126
△47
△66
+69
△417
△53
△190
△856
+471
△228
△157
△142
△14
In 2020, Woori Bank posted KRW 1,363.2 billion in net income (attributable to controlling interests), a KRW 142.3 billion y-o-y decrease, and KRW 1,925.7
billion in operating income, a KRW 665.9 billion y-o-y decrease, based on the consolidated financial statements. Major factors contributing to the decline in
net income were the reserve for COVID-19 response and a drop in non-interest income due to a decrease in the sales of asset management products and
imports and exports.
As a result of the two interest rate cuts (1.25 → 0.75 → 0.50) by the Bank of Korea, the net interest margin (NIM) fell 0.11%p. However, corporate and
household loans grew 11.04%p and 8.88%p, respectively, leading to an increase in earning assets, as a result of which the net interest income fell only by
KRW 25.6 billion y-o-y to KRW 5,291.1 billion.
Non-interest income dropped KRW 170.4 billion from the previous year. This was mainly attributable to the restrictions on the sales of asset management
products, such as complex products and ELTs, and reduced movement at home and abroad due to COVID-19. The net fee and commission income
decreased by KRW 126.1 billion and the securities income dropped by KRW 47.5 billion, while a net loss on disposal of financial assets at amortized cost
was recorded at KRW 66.3 billion. On the other hand, the F/X, derivatives and other operating income increased by KRW 69.4 billion from the previous year.
The impairment losses due to credit loss stood at KRW 535.3 billion, a KRW 417.0 billion increase from the previous year. This was due to the fact that,
while the ordinary credit cost was reduced as a result of the efforts to improve asset soundness, a reserve was created to better prepare for the increasing
uncertainty caused by COVID-19. Woori Bank has been managing its asset soundness and credit cost by increasing credit quality, monitoring sectors of
interest such as shipbuilding, construction and shipping and implementing stringent risk management. Through these efforts, the sub-standard or below
ratio reached its record-low level of 0.32%.
General and administrative expenses stood at KRW 3,547.0 billion, and the percent increase was kept minimal at 1.5%, or KRW 52.9 billion, through the
efforts to increase the efficiency of keeping the costs under control. Non-operating income was recorded at △ KRW 137.7 billion, a KRW 189.8 billion y-o-y
decrease due to the cost associated with the sales of PE funds such as Lime funds.
The business environment is expected to remain unfavorable due to increased uncertainty in domestic and overseas economies in 2021. However, Woori
Bank will make every effort to generate stable income, based on strong asset soundness, proactive risk management and customer-centric innovation.
099
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 ■ Woori Card
Category
Credit Card Payment Volume
Operating Revenue
Net Income
2020 (8th Term)
2019 (7th Term)
2018 (6th Term)
85,036,695
1,387,465
120,229
82,649,489
1,368,140
114,196
76,357,503
1,386,707
126,534
(Unit: KRW in millions)
Woori Card saw a KRW 25.6 billion decrease in income from credit card merchant fees due to the impact of COVID-19 but achieved KRW 120.2 billion in
net income, based on an increase in financial assets, cost reduction and non-recurring factors.
It has been forecast that the business environment for the credit card industry will continue to worsen in 2021. Business growth will be sluggish due to
shrinking private consumption due to COVID-19, maturation of the credit card industry, rising household debt and lower merchant fees. An additional
threat is the intensifying competition with BigTech companies and others triggered by the amendments to the three laws on data and the Electronic
Financial Transactions Act. However, Woori Card will work to boost income by managing the profitability of each business and efficiently controlling costs.
For instance, the company will expand profitable assets by reinforcing data analytics and pursuing marketing campaigns targeting prime customers, in
addition to readjusting its portfolio to attract new members and improving the cost structure to raise business efficiency and cut costs. In addition, the
company will raise the efficiency of business management by strengthening its asset soundness based on stringent risk management, thereby creating
a strong foundation for continually generating income. Furthermore, in order to secure new growth engines, Woori Card will continue its efforts to create
synergy with other affiliates of the Group and take advantage of the global network of Woori Bank.
■ Woori Financial Capital 1)
Category
Operating Revenue
Operating Expenses
Operating Income
Net Income before Income Tax Expense
Net Income 2)
Total Comprehensive Income 2)
2020
832,511
694,411
138,100
98,921
58,980
58,596
2019
726,369
592,614
133,756
133,905
101,588
98,971
(Unit: KRW in millions)
2018
615,238
505,213
110,025
109,896
90,969
89,314
Note 1) Based on consolidated financial statements
Note 2) 2020: Reflecting the goodwill impairment of KRW 39.2 billion for Woori Savings Bank
Through the diversification of the portfolio centering on high-return products as well as the growth of loan assets, Woori Financial Capital saw a 14.6%
y-o-y increase in operating revenue in 2020. On the other hand, net income fell compared to the previous year, due to the creation of a reserve to prepare for
insolvencies and other uncertainties brought upon by COVID-19 and the reflection of the goodwill impairment of Woori Savings Bank. In the future, however,
Woori Financial Capital expects to see an increase in operating revenue due to asset growth as well as continuous improvement in its profit structure, as
it will be able to borrow at cheaper rates as a subsidiary of Woori Financial Group and reap the benefits of creating a reserve for COVID-19 response in
advance.
■ Woori Investment Bank
Category
Operating Revenue
Operating Expenses
Operating Income
Net Income before Income Tax Expense
Net Income
Total Comprehensive Income
Note 1) Based on separate financial statements (K-IFRS)
2020 (49th Term)
2019 (48th Term)
2018 (47th Term)
(Unit: KRW in millions)
253,303
185,198
68,105
67,801
62,233
61,570
201,329
145,790
55,539
53,945
54,981
53,719
202,168
170,086
32,081
31,732
32,388
32,369
Woori Investment Bank recorded an operating income of KRW 68.1 billion, a 22.6% (KRW 12.6 billion) increase year-over-year, in 2020. An increase in
interest income from increased lending and gains on marketable securities pushed up the operating revenue by 25.8% (KRW 52.0 billion) compared to the
previous year, and the operating expenses also climbed 27.0% (KRW 39.4 billion) due to the losses on marketable securities. General and administrative
expenses, on the other hand, rose from KRW 31.2 billion in 2019 to KRW 39.0 billion in 2020 due to an increase in the workforce between 2019 and 2020.
The net income after deducting non-operating income (expenses) and income tax expenses amounted to KRW 62.2 billion, up 13.28% (KRW 7.2 billion)
from KRW 55.0 billion in 2019. Increases in deferred tax assets led to income tax benefits of KRW 1.0 billion in 2019, while an income tax of KRW 5.6 billion
was recorded in 2020.
Woori Investment Bank is implementing a roadmap to achieve continuous growth and become a key subsidiary of the Group in the non-banking sectors,
especially in the area of financial investment.
■ Woori Asset Trust
Category
Operating Revenue
Operating Expenses
Operating Income
Net Income from Continuing Operations before Income Tax Expense
Net Income
Total Comprehensive Income
Note) Based on separate financial statements (K-IFRS)
2020
79,426
31,861
47,565
47,716
35,312
35,954
2019
75,191
34,037
41,154
40,876
31,122
30,584
(Unit: KRW in millions)
2018
63,666
22,649
41,016
41,202
31,495
31,120
Woori Asset Trust recorded a 6% (KRW 4.2 billion) increase in operating revenue from the previous year. Despite the negative outlook on the domestic real
estate market, its operating revenue from land trusts and other trusts increased 17% (KRW 6.9 billion), and interest income also climbed 61% (KRW 1.8
billion). Dividends, on the other hand, decreased 99% (KRW 1.7 billion), and operating expenses dropped 6% (KRW 2.2 billion) y-o-y to KRW 31.9 billion.
Selling and administrative expenses increased by 12% (KRW 3.0 billion), partly due to an increase in payroll from an expansion of the workforce. Bad debt
expenses for loans fell 52% (KRW 2.1 billion) thanks to recovery for loan-type land trusts.
Woori Asset Trust’s return on assets was one of the highest in the industry in 2020 at 20.03%. Real estate trust revenue has been stagnant due to the
continuous decline in compensation for trust management and increased competition with three new securities firms entering the market. However, Woori
Asset Trust will boost profitability based on its strong business foundation in the management-type land trusts and non-land trusts, such as collateral
trusts and agency services, as well as synergy with the other affiliates of Woori Financial Group.
The sales and profitability of Woori Asset Trust are expected to improve in the future through the gradual expansion into the mid-risk, high-return
management-type land trusts backed by a completion guarantee and the small-scale renewal projects and by launching new businesses as a REIT AMC.
■ Woori Asset Management
Category
Operating Revenue
Operating Expenses
Operating Income (Loss)
Net Income from Continuing Operations before
Income Tax Expense (Loss)
Net Income (Loss)
Total Comprehensive Income (Loss)
Note) Based on separate financial statements (K-IFRS)
2020
23,329
14,941
8,388
8,906
6,707
6,224
2019
24,990
14,754
10,236
10,629
8,001
8,822
(Unit: KRW in millions)
2018
23,999
15,584
8,415
8,237
5,991
5,743
Woori Asset Management’s operating revenue stood at KRW 23.3 billion in 2020, a 6.4% (KRW 1.6 billion) decrease from the previous year. Redemption of
high-fee PE funds occurred on a large scale due to COVID-19, sending the operating revenue plummeting in the short term, but this was offset by attracting
investments in MMFs by marketing toward institutions. Operating expenses increased 1.3% (KRW 200 million) y-o-y to KRW 14.9 billion. Net income minus
the non-operating income (expenses) and income tax expenses was recorded at KRW 6.7 billion, a 16.3% (KRW 1.3 billion) decrease from KRW 8.0 billion
in 2019. Income tax expenses dropped 16% (KRW 1.7 billion) in line with the decline in net income.
Woori Asset Management recorded an ROA of 5.7% in 2020. In 2020, the AUM for PE fixed-income funds shrank due to the impact of COVID-19, and the inflow
into active equity investment funds became stagnant due to a growing number of individuals investing on their own. However, it is expected that the AUM and
profitability will improve in the future, with an inflow of funds into its new products and traditionally popular products during the post-pandemic period.
100
101
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 ■ Woori Savings Bank
Woori Savings Bank saw an increase of KRW 3.1 billion in income from loan interests thanks to the growth achieved centering on prime assets. However,
net income decreased KRW 150 million from the previous year to KRW 11.1 billion, partly due to the gains on sales of loans declining by KRW 3.9 billion
and gains on marketable securities falling by KRW 700 million.
Category
Operating Revenue
Operating Expenses
Net Income
Note) Based on K-GAAP
(3) Asset Quality
■ Woori Financial Group Inc.
Category
Total Loans
Sub-Standard or Below Loans
Sub-Standard or Below Ratio
Coverage Ratio
(Unit: KRW in millions)
At End-2020
At End-2019
At End-2018
68,113
21,442
11,120
66,528
23,822
11,272
59,936
21,302
15,763
Dec. 2020
299,075
1,256
0.42
153.8
Dec. 2019
266,432
1,198
0.45
133.6
(Unit: KRW in billions, %)
Change (amount)
32,643
58
-0.03
20.2
Even in the midst of an economic slowdown caused by COVID-19, Woori Financial Group recorded a sub-standard or below ratio of 0.42%, a 0.03%p
decrease from the previous year, based on proactive risk management.
While the total loans and sub-standard or below loans increased as a result of lending to companies hit by COVID-19 and rising demand-based loans,
Woori Financial Group has kept the sub-standard or below ratio steady by disposing of non-performing loans (NPLs) and thoroughly managing its portfolio.
By appropriating an allowance for bad debts to be prepared against uncertainties brought upon by COVID-19, the coverage ratio (excl. the reserve fund)
increased y-o-y by 20.2%p, indicating excellent capacity to cover potential losses.
■ Asset Quality Indicators of Major Subsidiaries
Category
Indicator
Total Loans
Sub-Standard or Below Loans
Sub-Standard or Below Ratio
Woori Bank
NPL
NPL Ratio
Coverage Ratio(A/B)
Total Allowance for NPL(A)
Sub-Standard or Below Loans(B)
Total Loans
Sub-Standard or Below Loans
Sub-Standard or Below Ratio
Woori Card
Delinquency Ratio
Coverage Ratio(A/B)
Credit Loss Provisions Outstanding(A)
Minimum Regulatory Reserve for Credit Loss(B)
(Unit: KRW in 100 millions, %)
2020
2,645,329
2019
2,430,845
2018
2,339,165
8,548
0.32
7,853
0.3
154
13,160
8,548
106,650
673
0.63
1.18
102.65
7,696
7,497
9,797
0.4
8,793
0.36
121.8
11,933
9,797
98,170
789
0.8
1.61
102.84
7,641
7,430
11,825
0.51
10,156
0.43
119.42
14,121
11,825
96,072
772
0.8
1.78
104.02
7,273
6,991
Category
Indicator
Total Loans
Woori Financial
Capital
Sub-Standard or Below Loans
Sub-Standard or Below Ratio
Delinquency Ratio
Coverage Ratio(A/B)
Credit Loss Provisions Outstanding(A)
Minimum Regulatory Reserve for Credit Loss(B)
Total Loans
Sub-Standard or Below Loans
Sub-Standard or Below Ratio
Woori Investment
Bank
NPL
NPL Ratio
Coverage Ratio(A/B)
Credit Loss Provisions Outstanding(A)
Sub-Standard or Below Loans(B)
Assets Subject to Quality Classification
Woori Asset Trust
Sub-Standard or Below Assets
Ratio of Sub-Standard or Below Assets
Total Loans
Woori Savings Bank
Sub-Standard or Below Loans
Sub-Standard or Below Ratio
2020
68,946
1,220
1.77
1.33
117.37
1,710
1,457
27,466
216
0.79
56
0.2
84.72
183
216
390
248
63.64
10,292
350
3.4
2019
57,392
1,306
2.28
1.59
96.99
1,278
1,318
18,737
92
0.49
39
0.21
167.39
154
92
712
267
37.51
8,960
314
3.51
2018
45,905
632
1.38
1.41
119.75
1,004
839
16,495
248
1.51
247
1.49
51.21
127
248
431
45
10.52
8,558
288
3.36
Note) Based on Work Report of Financial Supervisory Service (FSS); Woori Savings Bank: Based on K-GAAP
Woori Bank has been demonstrating remarkable performance in terms of financial soundness by pursuing proactive credit risk management and
sophisticating its risk management system.
Sub-standard or below ratio, for example, has been dropping steadily from 0.51% in 2018 to 0.40% in 2019 and 0.32% in 2020. The coverage ratio (excl. the
reserve fund) has been raised from 119.4% in 2018 to 121.8% in 2019 and 154.0% in 2020, attesting to its preparedness against additional losses.
Woori Bank’s corporate loans increased from KRW 121 trillion in 2019 to KRW 132 trillion in 2020, while the sub-standard or below ratio of corporate loans
decreased from 0.57% in 2019 to 0.48% in 2020. The marked decline in the sub-standard or below ratio was made possible by lending to companies in
good standing, disposing of NPLs and curbing NPLs by thorough portfolio management. Household loans increased from KRW 120 trillion in 2019 to KRW
130 trillion in 2020, while the sub-standard or below ratio of household loans fell markedly from 0.23% in 2019 to 0.17% in 2020 (based on the NPL records
of the Financial Supervisory Service).
As sufficient provisions have been set aside for substandard or below loans to borrowers undergoing debt restructuring through work-out or rehabilitation
procedures, additional losses are unlikely to be incurred. These companies are working to normalize their business operations and if unsuccessful, they are
contemplating on liquidating their assets. Although the current indicators of financial soundness are deemed excellent, Woori Bank is monitoring various
risks more thoroughly, based on the judgment that the data may be distorted due to payment deferrals granted in response to COVID-19, etc., to be better
prepared against uncertainties at home and abroad.
Woori Card has seen steady decline in the delinquency rate from 1.78% in 2018 to 1.61% in 2019 and 1.18% in 2020. This was driven by thorough risk
management, enhanced capabilities to collect on debt and ongoing disposition of NPLs.
Woori Financial Capital has been recording the industry’s lowest delinquency rate at 1.41% in 2018, 1.59% in 2019 and 1.33% in 2020.
In 2019, the sub-standard or below ratio increased (2.28%) due to a change in the financial soundness of borrowers closing their businesses among private
business owners that affected the entire industry. Despite the reinforced standards for asset soundness classification with respect to the sub-standard
or below loans in 2020, the sub-standard or below ratio was substantially improved to 1.77% based on the management of prime assets and reinforced
capabilities to collect on debt. The company has conservatively set aside provisions to be sufficiently prepared against losses that may potentially be
incurred due to uncertainties at home and abroad.
Woori Investment Bank has been striving to improve asset soundness since 2013. Bad loans that correspond to the numerator when calculating the ratio
of asset soundness were reduced by recovery, sale or write-off, while financially sound assets that correspond to the denominator were boosted, resulting
in improved asset soundness ratio overall. Furthermore, risk management has been reinforced in order to prevent non-performing assets. Consequently,
the ratio of new non-performing assets has dropped significantly since 2013. Woori Investment Bank is also boosting both preemptive and ex-post risk
management.
102
103
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Woori Asset Trust saw a decline in loans by 45% (KRW 32.2 billion) as a result of collection from trust accounts, and the sub-standard or below ratio also
fell 7% (KRW 1.9 billion) as a result.
Woori Asset Management has been endeavoring to bolster monitoring to improve its preparedness against crisis and set an appropriate risk capital limit
and manage it within the limit, in addition to improving transparency in its decision-making by operating a related taskforce (TF). Also, it has also examined
the themes of internal control in order to upgrade its internal control system, as part of the efforts to prevent incidents, and reinforced prior reviews of
compliance in relation to non-face-to-face sale channels.
Woori Savings Bank recorded 3.4% in sub-standard or below ratio, a 0.11%p y-o-y decrease, by making efforts to improve asset soundness through risk
management and sales.
(4) Capital Adequacy
■ Woori Financial Group, Inc.
Category
Common Equity Tier 1 Capital
Additional Tier 1 Capital
Tier 2 Capital
Total BIS Capital
Risk-Weighted Assets
Common Equity Tier 1 Ratio
Tier 1 Capital Ratio
BIS Capital Adequacy Ratio
2020
19,828
3,534
4,086
27,448
198,269
10.00
11.78
13.84
2019
19,135
3,340
4,640
27,115
228,046
8.39
9.86
11.89
(Unit: KRW in billions, %, %p)
Change (amount)
693
194
△554
333
△29,777
1.61
1.92
1.95
Note) Based on the internal ratings-based approach for 2020 and based on the standard approach for 2019
At the end of 2020, the BIS capital adequacy ratio of the Group stood at 13.84%, a 1.95%p increase year-over-year, and the common equity tier 1 ratio
was recorded at 10.0%, a 1.61%p increase year-over-year. This was possible, despite the KRW 9.6 trillion increase in risk-weighted assets as a result of
the incorporation of Woori Financial Capital into the Group, due to the efforts to improve the capital adequacy ratio, such as the issuance of KRW 0.9
trillion worth of convertible bonds, and the reduction of risk-weighted assets following the approval of the internal ratings-based approach in June and
the early introduction of the final Basel III reforms in the credit risk area in September. Woori Financial Group, Inc. will continue to comply with regulatory
requirements, realize profits and recapitalize at an adequate level to raise capital adequacy.
■ Capital Ratios of Major Subsidiaries
※ Woori Bank
Common Equity Tier 1 Capital
Additional Tier 1 Capital
Tier 2 Capital
Total BIS Capital
Risk-Weighted Assets
Common Equity Tier 1 Ratio
Tier 1 Capital Ratio
BIS Capital Adequacy Ratio
Note) Prior to dividend payout
2020 Note)
2019
2018
(Current) 187th term
(Previous) 186th term
(Previous) 185th term
(Unit: KRW in billions, %)
19,155
2,752
3,362
25,269
145,755
13.14
15.03
17.34
17,321
3,466
3,527
24,314
157,890
10.97
13.17
15.40
17,276
3,148
3,828
24,251
154,971
11.15
13.18
15.65
In 2020, the common equity tier 1 capital increased KRW 1,834.0 billion to KRW 19,155.0 billion, a 10.6% y-o-y increase. Capital was increased centering on
common equity through a paid-in capital increase of KRW 1 trillion in June 2020 and an increase in internal reserves. The additional tier 1 capital decreased
KRW 714.0 billion to KRW 2,752.0 billion, as a result of the repayment of hybrid bonds (call option). Tier 2 capital, on the other hand, fell KRW 165.0 billion
to KRW 3,362.0 billion. This was attributable to a decline in subordinated bonds recognized as equity, but the amount of decrease was minimized by new
issuance of subordinated bonds. The total BIS capital was recorded at KRW 25,269.0 billion, a KRW 955.0 billion increase from the previous year.
In 2020, the risk-weighted assets fell KRW 12,135.0 billion (7.7%) to KRW 145,755.0 billion. This was a result of the introduction of the final Basel III reforms
in late September as well as the efforts made to improve the capital adequacy ratio by minimizing potential non-performing assets and maintaining an
appropriate amount of prime assets.
In 2020, the common equity tier 1 ratio, tier 1 capital ratio and BIS capital adequacy ratio were recorded at 13.14%, 15.03% and 17.34%, a 2.17%p, 1.86%p
and 1.94%p y-o-y increase, respectively. Going forward, Woori Bank will continually improve its capital adequacy ratio by generating steady profits, paying
an appropriate amount of dividends and increasing capital.
Category
Woori Card
Woori Financial Capital
Woori Investment Bank
Indicator
Adjusted Capital Ratio
Tangible Common Equity Ratio
Adjusted Capital Ratio
Tangible Common Equity Ratio
BIS Capital
Adequacy Ratio
Total BIS Capital(A)
Risk-Weighted Assets(B)
BIS Capital Adequacy Ratio(A/B)
Woori Asset Trust
Woori Asset Management
Woori Savings Bank
Net Operating Capital Ratio (NCR)
Minimum Operating Capital Ratio
BIS Capital Adequacy Ratio
(Unit: KRW in 100 millions, %)
2020
19.93
13.48
12.17
10.77
4,918
31,922
15.41
1,286.43
754.1
13.40
2019
18.33
14.29
13.46
12.08
3,381
26,303
12.86
1,397.97
655.8
13.46
2018
18.08
13.54
15.47
14.04
3,003
23,192
12.95
957.76
558.9
12.29
Note 1) BIS capital adequacy ratio=total BIS capital/risk-weighted assets x 100
Note 2) The numbers for Woori Card and Woori Financial Capital are based on the report issued by the FSS
Note 3) Woori Investment Bank: Based on the report issued by the FSS / Based on consolidated financial assets (K-IFRS)
Note 5) Net capital ratio of Woori Asset Trust=(net capital-subordinated borrowings, etc.)/total risk exposures (market risk + credit risk + operating risk)x100/K-IFRS separate
financial statements
Note 6) Woori Asset Management: Based on separate financial statements (K-IFRS)
Note 7) Woori Savings Bank: Based on K-GAAP
At the end of 2020, Woori Card had an adjusted capital ratio (ACR) of 19.93%, surpassing the minimum requirement according to the Management
Guidance (8% or above) in accordance with the Supervisory Regulations on Specialized Credit Financial Business. Woori Investment Bank also recorded an
excellent BIS capital adequacy ratio of 15.41% at the end of 2020 (requirement by the Financial Investment Services and Capital Markets Act: 8%).
Woori Investment Bank saw a slight increase in its BIS capital adequacy ratio following a paid-in capital increase in 2020. It is expected to be maintained
at over 12% even after reflecting the asset expansion plan according to the business management plan for 2021. In addition, the BIS capital in December
2020 consisted of KRW 481.9 billion in tier 1 capital and KRW 9.9 billion in additional tier 1 capital, indicating a high tier 1 ratio. As such, the company has
the capacity to achieve asset expansion and capital expansion through additional tier 1 capital, if necessary.
The ACR of Woori Financial Capital was 12.17%, a slight decrease from the previous year. This was attributable to the continued asset growth, and
this trend is expected to be observed in the future, depending on the rate of growth. It should be noted, however, that it will be kept above the minimum
requirement according to the Management Guidance (7% or above) in accordance with the Supervisory Regulations on Specialized Credit Financial
Business.
Woori Asset Trust recorded an equity capital that was 1,292.4% of the minimum equity requirement (KRW 10.0 billion) set forth in the Financial Investment
Services and Capital Markets Act and the Enforcement Decree of the Act. The net capital ratio (NCR) dropped 112%p y-o-y to 1,286%, but it still remained
among the highest out of the fourteen trust companies last year.
As for Woori Savings Bank, the BIS capital adequacy ratio was 13.4%. While the earned surplus climbed upward, the BIS capital adequacy ratio fell 0.06%p
from the previous year due to an increase in risk-weighted assets resulting from an overall expansion of assets.
B. New Businesses and Suspended Businesses
Woori Financial Group has been endeavoring to enhance its value and competitiveness by newly incorporating subsidiaries specializing in businesses
related to consumer finance in 2020 and building a system to promote synergy with other subsidiaries.
[Acquisition of Woori Financial Capital and Woori Savings Bank]
Woori Financial Group completed the acquisition of shares of Aju Capital and its subsidiary, Aju Savings Bank, in December 2020. Aju Capital, which
displayed excellence in auto financing, was renamed as Woori Financial Capital, and it is expected to achieve accelerated growth with the improved ability
to raise funds and manage risks as a subsidiary of Woori Financial Group and by collaborating with other subsidiaries. Aju Savings Bank, renamed as
Woori Savings Bank, will play a pivotal role in the consumer finance business of the Group and offer excellent financial services such as loans to SMEs and
vulnerable groups along with other subsidiaries.
104
105
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 C. Business Rationalization
(1) Alteration and Reorganization of Business Groups
■ Woori Financial Group
[Establishment of a business management system and reinforcement of professional expertise (Feb. 2020)]
In February 2020, the Management Support Unit and the Business Management Department were newly established to reinforce business management of
the existing and newly incorporated subsidiaries. Through these organizations, the main businesses of the Group are managed carefully to pursue steady
growth. The Group also established the Finance Planning Unit and Finance Management Department to pursue financial management with professional
expertise, the Digital & IT Unit to pursue innovation at an accelerated rate and the New Business Unit to expand into new business areas. The Strategy
Group, Public Relations and Brand Group and Financial Consumer Protection Department were also newly established to support the management in
decision-making and promote socially responsible management.
[Establishment of an organization dedicated to preventing money laundering (Mar. 2020)]
In May 2020, Woori Financial Group created a department (Anti-Money Laundering Department) overseeing internal controls to prevent money laundering
across the organization. This has allowed the Group to align itself with the growing importance of anti-money laundering practices and its management
and coordination activities to combat money laundering.
[Restructuring of the organization to power the digital innovation of the Group (Jul. 2020)]
In July 2020, a new organization was incepted for the purpose of concentrating the Group’s digital capacity and strengthening its competitiveness in
relation to digital technology. The organization will offer assistance in the digital innovation projects of the Group and pursue differentiated capacity in
applying cutting-edge digital technology.
[Restructuring of the organization to raise efficiency and improve business management (Dec. 2020)]
For the purpose of creating an efficient operating system centering on the key organizations, Woori Financial Group endeavored to slim down its
organization in December 2020. The position of Senior Vice President and the Business Growth Group were newly established to maximize synergy among
the subsidiaries and integrate the business management organizations. In addition, the Public Relations Office and the ESG Management Department were
established to strengthen the establishment and implementation of brand strategies at the Group level and to respond to the growing importance of ESG
management, while the Audit Group was newly established for more rigorous internal audits.
■ Woori Bank
Woori Bank acquired the official approval for MyData (personal credit information management business) on January 27, 2021, with plans to offer
innovative MyData services, including personal financial management. It will also continually build its capacity to operate data-based businesses.
■ Woori Card
Woori Card restructured its organization to respond systematically and proactively to the changes in the business environment. It has concentrated its core
functions and sped up the decision-making process by restructuring the sales and marketing organization to promote the use of credit sales and recruit
more users. In addition to introducing a division dedicated to boosting prime financial assets and auto financing, it also set up regional centers as frontline
customer touchpoints. The Future Growth Division was newly established to expand on global businesses and incubate new growth businesses, while
digital platform organizations were integrated into the Digital Innovation Team to speed up digital innovation and achieve tangible results by strengthening
the digital capacity.
■ Woori Financial Capital
Woori Financial Capital endeavored to expand its personal finance and corporate finance businesses to diversify its business portfolio, which had mainly
focused on auto financing. Also, long-term car rental was added to the car financing product lineup, which had previously consisted of installment
payments, lease and loans, and an organization was created to handle leases for general properties, not just auto leases. In addition, in order to effectively
produce synergy with other subsidiaries and strengthen its digital-based businesses, it newly introduced a organizations dedicated to synergy creation
and to implementing digital strategies at the company level. It also restructured its organization, with the aim of improving risk management by separating
sales and review processes, strengthening the strategizing and planning functions and raising the efficiency of management and support.
■ Woori Investment Bank
Woori Investment Bank created the Digital Finance Team (Department) in June 2020 in response to the contactless trend in the financial sector. It plans
to pursue digital innovation by strengthening the non-face-to-face service platforms and discovering FinTech-related services and increase the number of
customers using non-face-to-face channels. The company also restructured its organization on January 1, 2021 for the purpose of promoting sales. The
Investment Finance Department was incorporated into the CIB Business Division, with plans to broaden the scope of collaboration with Woori Bank in joint
equity investment and more. The FICC Department was expanded as the Capital Market Department to broaden the business portfolio to include ECM and
corporate bond management. Furthermore, there are plans to create a loan policy department to oversee loan strategies by establishing a loan portfolio
policy and conducting industry research and analysis.
106
■ Woori Asset Trust
Woori Asset Trust endeavored to promote synergy between the business management organizations and business operation organizations under the co-
CEO management system and revamped the organizations providing support by reinforcing internal controls (separation of the Risk Management Team
and Compliance Team) and improving the contract review system (reinforcing the voting system and hiring examiners) to create a business management
system at the Group level. It also newly established the REIT Business Division, a department dedicated to renewal projects and related sales teams, as
part of the efforts to secure new growth engines and boost the business operation capacity in 2021.
■ Woori Asset Management
Woori Asset Management is striving to create a balanced portfolio as a management objective. To this end, it introduced the RM system to foster the
equity investment and global business areas. RMs with professional expertise in marketing and asset management will play the role of marketers that can
cater to institutional investors.
(2) Early Retirement of Employees, etc.
Woori Bank, a major subsidiary of Woori Financial Group, has been carrying out the Outplacement Services Program that serves as an upgraded early
retirement program since 2005. The Outplacement Services Program is designed to resolve the bottleneck in promotions and improve its workforce
structure, while allowing employees to plan out a new chapter after retirement. Employees looking to resign from their positions are provided with the
support necessary to prepare for a life after retirement. In 2020, the related services were provided to a total of 487 employees, which helped improve the
workforce structure of the bank.
D. F/X Fluctuations
1) Foreign Currency Translation
The consolidated financial statements are presented in Korean won (KRW), the functional currency of the parent company. Monetary assets and liabilities
denominated in foreign currencies are translated at the exchange rate at of the end of the reporting period. The difference in foreign currency translation
between the effective hedging portion of the fluctuations in the fair value of derivatives that meet the criteria for cash flow hedging accounting and the
monetary items in relation to the net investment in overseas operations is recognized as equity.
For the purpose of preparing the consolidated financial statements, assets and liabilities of overseas operations that are subject to consolidation are
presented in Korean won (KRW) based on the exchange rate at the end of the reporting period. If the exchange rate fluctuates materially during the relevant
period, and it is not necessary to use the exchange rate at the transaction date, the items of profit and loss are translated at the average exchange rate
for the relevant period, and the resulting exchange difference is recognized as other comprehensive income and aggregated in equity (appropriated to
non-controlling interests if appropriate). In the case of disposal of overseas operations site, the cumulative amount of exchange differences related to
the overseas operations site attributable to the parent company is reclassified as profit or loss, and while the cumulative amount of exchange differences
related to the overseas operations site attributable to non-controlling interests is eliminated but not reclassified as profit or loss.
The fair value adjustments for goodwill and identifiable assets and liabilities arising from acquisition of an overseas operations site are treated as assets
and liabilities of the overseas operations site and translated at the exchange rate at the end of the reporting period. The resulting exchange difference is
recognized in other comprehensive income.
E. Asset Impairment Losses and Reduction Losses
Asset impairment losses and reduction losses incurred based on consolidated financial statements are as follows:
Category
(Current) 2nd term
(Previous) 1st term
Credit Loss on Financial Assets at Fair Value through Other
Comprehensive Income (“FVTOCI”)
Reversal of (Provision for) Credit Loss on Securities at Amortized Cost
Provision for Credit Loss On Loans and Other Financial Assets at
Amortized Cost
Reversal of Allowance for Acceptances and Guarantees Losses
Reversal of (Provisions for) Allowance for Undrawn Commitment
Reversal of (Provisions for) Impairment Losses on Premises, Equipment,
Intangible Assets, Goodwill and Other Assets
Provision for Impairment Losses on Investments in Joint Ventures and
Associates
(1,529)
934
(3,297)
1,415
(792,250)
(385,758)
18,348
(9,874)
(8,591)
(1,242)
4,352
9,044
(28,192)
(3,634)
(Unit: KRW in millions)
2018
(2,027)
(1,922)
(415,084)
105,985
(16,526)
674
(177)
107
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 ■ Woori Bank
Category
ImpairmentㆍLoss
Cause
Stocks subject to consolidation (Brazil
Woori Bank)
KRW 20.62 billion
More than 30% decrease in the net asset value compared to Woori Bank’s investment
in Korean won due to a drop in the BRL-KRW exchange rate
Stocks of related company
(K Bank)
KRW 6.9 billion
Recognition of impairment incurred until the reason for the impairment was resolved
(capital increase in July 2020)
■ Woori Financial Capital
Category
Name
Loss
Cause
Beneficiary
certificates
Beneficiary
certificates
Total
Hyundai Invest Guggenheim CLO Specialized Investment
PE Special Asset Investment Trust No. 2
693
A decrease in recoverable amount due to changes
in the market situation
KORAMCO Specialized Investment PE Real Estate
Investment Trust No. 107
2,956
3,648
A decrease in recoverable amount due to delayed
collection of principal and interest and a lawsuit
-
(Unit: KRW in millions, %)
■ Woori Investment Bank
Category
2020 (49th term)
2019 (48th term)
2018 (47th term)
Impairment Loss on Intangible Assets and Goodwill
Impairment Loss on Financial Assets Available for Sale
Total
50
-
786
-
786
-
-
-
(Unit: KRW in millions)
Woori Investment Bank conducts impairment tests each year on intangible assets and its activities of goodwill. Whenever there is sign of asset impairment
loss and the book value of intangible assets and goods are set to exceed the estimated recoverable amount, the book value is immediately reduced to the
recoverable amount. An impairment inspection was carried out on the membership in possession during the 2020 accounting period, and the book value
of KRW 50 million exceeding the estimated recoverable amount was recognized as an impairment loss.
■ Woori Asset Trust
Category
Impairment Loss on Premises and Equipment
Impairment Loss on Intangible Assets and Goodwill
Total
Note 1) Based on separate financial statements (K-IFRS)
4. Liquidity, Sources & Applications of Fund
A. Liquidity
■ Woori Financial Group, Inc.
Category
Liquid Assets
Liquid Liabilities
LCR in KRW
Note 1) Based on liquid assets and liabilities with time to maturity of one month or less
2020
-
-
-
2020
40,308
7,911
509.5
108
(Unit: KRW in millions)
2018
-
-
2019
660
-
660 -
(Unit: KRW in millions, %, %p)
Change (amount)
△4,771
436
△93.5
2019
45,079
7,475
603.1
Liquidity risk refers to the risk of incurring unexpected losses (abnormal disposition of assets, financing through high interest rate, etc.) or becoming
insolvent due to disparities in dates of payment between assets and liabilities or the drastic outflow of funds. Each subsidiary of the Group secures
an adequate level of liquidity and minimizes their risk of shortage of funds by early prediction methods and systematically managing the causes of
fluctuations in liquidity, relevant to sourcing and managing funds.
Woori Financial Group, Inc. maintains an LCR in KRW at a level higher than 100% as required by law. Please refer to 4-3) Liquidity Risk in [III. Matters on
Financials/5. Notes for Financial Statements] of this report for details regarding liquidity risk management based on separate financial statements, and
to [III. Matters on Financials/3. Notes for Consolidated Financial Statements] 4-4) Liquidity Risk for details regarding liquidity risk management based on
consolidated financial statements.
■ Woori Bank
Category
LCR (Including KRW and all other currencies)
Foreign Currency LCR
2020 (187th term)
2019 (186th term)
2018 (185th term)
92.07
106.06
107.27
110.5
103.40
108.98
(Unit: %)
Note 1) Applied as the same as the calculation criteria for management disclosures (average of the ratio on each business day during the quarter); The LCR requirement
was adjusted downward (100% → 85%) until the end of March 2021 in accordance with the Financial Services Commission’s Implementation of Financial Regulation
Flexibilization Measures and Future Plans in 2020 4Q, 2019 4Q and 2018 4Q
Note 2) Presented in the same manner as the calculation criteria for management disclosures (average of the quarter); The ratio of foreign currency LCR to the regulatory
requirement was adjusted downward (80% → 70%) until the end of March 2021 in accordance with the Financial Services Commission’s Implementation of Financial
Regulation Flexibilization Measures and Future Plans in 2020 4Q, 2019 4Q and 2018 4Q
Woori Bank manages the liquidity coverage ratio (LCR), an indicator for liquidity regulations in Basel III, at 92.07%, as of 2020 4Q, by increasing highly liquid
assets through deposits and corporate bonds. (The LCR will be lowered to 85% by March 2021.)
Foreign currency LCR was recorded at 106.06% on average, as of 2020 4Q, (set to be decreased to 70% by March 2021) a by securing a sufficient amount
of highly liquid assets such as US treasury bills.
Woori Bank manages the liquidity gap ratio and concentration of funding, in addition to keeping the LCR and foreign currency LCR above the regulatory
requirements, in order to maintain a stable funding structure. The bank also checks for excessive shortages of liquid assets through periodic stress testing,
and if liquidity is lacking due to an unexpected crisis, Woori Bank executes a contingency funding plan and utilizes committed lines from overseas financial
institutions to acquire liquidity.
■ Woori Card
Woori Card performs funding based on the principles of diversifying sourcing channels, maintaining an adequate maturity structure and securing liquidity,
in order to maintain a stable funding structure.
As of the end of 2020, the outstanding debenture issues amounted to KRW 7,862.5 billion, up KRW 781.6 billion from KRW 7,080.9 billion at the end of
2019. Woori Card has an adequate level of liquidity and a credit line of KRW 550.0 billion so that it can repay borrowings that are set to reach their maturity
and provide operating funds without market financing for some time even in the event of an unexpected credit crunch in the financing market.
(1) Liquidity
Based on consolidated financial statements
Category
Cash and Deposits
Credit Line
Total
(2) Financing through Debentures
Based on consolidated financial statements
Category
Debentures Issued in KRW
Liquid Debentures
Debentures Issued in Foreign Currencies
Total
(Unit: KRW in 100 millions)
2020 (8th term)
2019 (7th term)
2018 (6th term)
5,479
5,500
10,979
1,362
4,800
6,162
3,822
5,300
9,122
2020 (8th term)
2019 (7th term)
2018 (6th term)
(Unit: KRW in 100 millions)
67,450
9,217
1,958
78,625
60,500
9,383
926
70,809
60,200
9,701
559
70,460
109
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 (Unit: KRW in 100 millions)
■ Woori Financial Group, Inc. (based on separate financial statements of the holding company)
B. Sources and Management of Fund
(3) Time to Maturity of Debentures
Based on consolidated financial statements
Category
One Year or less
1 to 2 Years
2 to 3 Years
Over Three Years
Total
■ Woori Financial Capital
Category
Liquid Assets in KRW
Liquid Liabilities in KRW
LCR in KRW
2020 (8th term)
2019 (7th term)
2018 (6th term)
21,324
18,976
21,838
16,488
78,625
20,154
17,839
15,616
17,200
70,809
19,555
20,040
16,865
14,000
70,460
2020 (27th term)
2019 (26th term)
2018 (25th term)
1,357,876
616,632
220.2
1,037,894
498,197
208.3
775,050
507,518
152.7
(Unit: KRW in millions)
Woori Financial Capital’s LCR increased by 11.9%p to 220.2%, as of the end of 2020. The LCR of the company is the ratio of liquid assets that will reach
their maturities within 90 days to liquid liabilities that will reach their maturities within 90 days in accordance with Article 53-3 of the Specialized Credit
Finance Business Act and its subordinate regulations. In light of this, Woori Financial Capital is deemed to be maintaining its LCR at a fairly good level.
In addition, to respond to the liquidity crisis caused by a credit crunch in the financing market, Woori Financial Capital is maintaining an appropriate level of
liquid funds that are immediately available as well as credit lines from financial institutions.
■ Woori Investment Bank
Category
KRW LCR
Foreign Currency LCR
2020 (49th term)
2019 (48th term)
2018 (47th term)
139.27
-
149.49
109.72
266.26
105.80
(Unit: %)
Woori Investment Bank’s LCR in KRW decreased 10.22%p y-o-y to 139.27%, as of the end of 2020. The foreign currency LCR cannot be calculated as there
are no liquid liabilities in foreign currencies.
LCR in KRW is the ratio of assets to liabilities that will reach their maturities within three months, and Woori Investment Bank ensures that the figure
remains at 100% or above (Article 8-41 (Liquid assets/Liquid liabilities) of the Regulation on the Financial Investment Services and Capital Markets). As of
the end of 2020, Woori Investment Bank’s LCR in KRW was 139.27%, a decrease from the LCR in 2019, but it is still deemed to be at a satisfactory level.
Foreign currency LCR, the ratio of foreign currency assets to liabilities that will reach their maturities within three months, is maintained at or above 85%
(Article 8-69 (Liquid assets and Liquid liabilities) Regulation on the Financial Investment Services and Capital Markets).
■ Woori Savings Bank
Category
Liquid Assets
Liquid Liabilities
LCR
Note) Based on K-GAAP
2020 (50th term)
2019 (49th term)
2018 (48th term)
267,927
209,712
127.76
263,961
228,491
115.52
289,957
248,252
116.80
(Unit: KRW in millions, %)
Woori Savings Bank recorded an LCR of 127.76%, a 12.24%p y-o-y increase, at the end of 2020. Woori Savings Bank is required to maintain its LCR, which
is the ratio of assets to liabilities that will reach their maturities within three months, at 100% or higher (Article 40-1 (Supervisory Regulations) of the Mutual
Savings Bank Act) and has successfully achieved the target in 2020.
110
Debentures
Other Liabilities
Equity
Total Funds
Cash and Deposits
Share Investments in Subsidiaries
Non-Current Assets
Other Assets
Total Funds Managed
At End-2020
At End-2019
Change (amount)
Change (%)
(Unit: KRW in billions, %)
1,148
239
21,044
22,431
469
21,562
18
231
22,280
948
153
20,106
21,207
1,173
19,874
11
149
21,207
200
86
938
1,224
△704
1,688
7
82
1,073
21.10
56.21
4.67
5.77
△60.02
8.49
63.64
55.03
5.06
Note) Other liabilities: provisions + current income tax liabilities + deferred tax liabilities + other liabilities; Other assets: derivatives assets + other assets
Woori Financial Group is a financial holding company established pursuant to the Financial Holding Companies Act. Dividends from subsidiaries are its
main source of revenue, and no other sales activities are pursued. The sources of funds in 2020 include KRW 1,148 billion in debenture issuance, a KRW
200 billion increase from the previous year, while hybrid securities increased KRW 898 billion to KRW 1,895 billion.
As for the funds managed, the share investments in subsidiaries increased KRW 1,689 to KRW 21,562 billion, consisting of Woori Bank’s capital increase
of KRW 1 trillion, Woori Investment Bank’s capital increase of KRW 55 billion as well as KRW 634 billion of shares of Woori Financial Capital that was newly
incorporated in 2020. Deposits stood at KRW 469 billion, a y-o-y decrease of KRW 704 billion. Woori Financial Group also holds KRW 150 billion worth of
hybrid securities issued by Woori Card.
As for the amount of repayment according to the maturity of the debentures issued by Woori Financial Group, see the section on debentures issued in
4-(3)-2) Analysis of Maturity of Non-Derivative Financial Liabilities 【5. Notes to Financial Statements in Ⅲ. Matters on Financials】.
■ Woori Bank
(1) Sources of Funds
Category Fund
2020 (187th term)
2019 (186th term)
2018 (185th term)
(Unit: KRW in billions, %)
Average
balance
Interest
rate
%
Average
balance
Interest
rate
%
Average
balance
Interest
rate
Deposits, installments
227,416
Certificates of deposit
Funds
in KRW
Borrowings in KRW
Call money in KRW
Others
Subtotal
Deposits in foreign currencies
Borrowings in foreign currencies
Call money in foreign currencies
Debentures in foreign currencies
Funds in
foreign
currencies
Others
Subtotal
Total Equity
Provisions
Others
Subtotal
Others
Total
1,677
8,537
150
21,964
259,743
20,684
7,894
652
4,222
637
34,089
22,576
497
20,449
43,522
337,355
1.09
1.19
0.92
0.71
1.97
1.16
0.47
1.20
0.70
2.53
0.39
0.90
0.00
0.00
0.00
0.00
0.98
67.4
212,555
0.5
2.5
0.0
6.5
4,760
6,966
406
21,925
77.0
246,612
6.1
2.3
0.2
1.3
0.2
10.1
6.7
0.1
6.1
12.9
16,647
7,944
877
4,209
623
30,301
21,875
454
20,007
42,336
1.50
2.09
1.43
1.60
2.36
1.59
1.19
2.24
2.38
3.89
1.11
1.87
-
-
-
-
66.6
197,572
1.5
2.2
0.1
6.9
5,040
6,555
221
20,937
77.2
230,325
5.2
2.5
0.3
1.3
0.2
9.5
6.9
0.1
6.3
13.3
15,220
6,458
787
3,670
659
26,794
20,897
433
17,876
39,207
1.41
1.97
1.47
1.50
2.39
1.51
0.88
2.13
1.84
3.96
0.38
1.62
-
-
-
-
100.0
319,248
1.40
100.0
296,325
1.32
%
66.7
1.7
2.2
0.1
7.1
77.7
5.1
2.2
0.3
1.2
0.2
9.0
7.1
0.1
6.0
13.2
100.0
111
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Note 1) Deposits in KRW = Deposits in KRW – Deposit checks & bills in the process of collection – reverse deposits with BOK – inter-bank adjustment funds (call loans)
* Deposit checks & bills in the process of collection = total checks and bills in the process of collection – checks & bills on clearing for overdrafts – inter-bank
adjustment funds (call money)
* Interest for calculating interest rates is the sum of interest on deposits and installment deposits and deposit insurance premiums.
Note 2) Deposits in foreign currencies = Deposits in foreign currencies + off-shore deposits in foreign currencies
Note 3) Borrowings in foreign currencies = Borrowings in foreign currencies + dues to BOK in foreign currencies + off-shore borrowings in foreign currencies
Note 4) Debentures in foreign currencies = Debentures issued in foreign currencies + offshore debentures in foreign currencies
Note 5) Excluding merchant banking accounts
The average fund balance sourced by Woori Bank in 2020 increased by KRW 18 trillion y-o-y to KRW 337 trillion in 2020. The average balance of funds in
Korean won was KRW 260 trillion, with the main source being deposits from customers to ensure stable liquidity, and as a result, deposits increased by
KRW 13 trillion y-o-y. The average balance of funds in foreign currencies, on the other hand, increased by KRW 3.8 trillion y-o-y, while deposits in foreign
currencies rose by KRW 1.4 trillion. By effectively managing liquidity by raising funds to comply with the LCR and loan-deposit ratio (LDR) and managing its
portfolio of fund sources and management, Woori Bank has been successfully enhancing profitability.
※ Time to Maturity for Major Financial Liabilities
Category of Financial liabilities
Financial Liabilities at Fair Value
through Profit and Loss
Depository
Borrowings
Debentures
Other Financial Liabilities
3 months
or less
4 to 6
months
7 to 9
months
10 to 12
months
64,183
3,735
991
-
185,543,586
32,519,258
24,492,945
28,505,125
6,897,972
1,998,575
7,228,999
2,246,200
2,147,939
36,151
1,547,942
2,785,291
32,434
1,763,215
2,093,565
27,761
1 to 5
years
-
7,005,101
3,517,124
11,748,493
135,832
(Unit: KRW in millions)
Over 5
years
Total
-
68,909
499,595
452,496
2,079,903
1,998,218
278,565,610
16,424,949
22,853,766
9,459,395
Total
201,733,315
36,953,283
28,859,603
32,389,666
22,406,550
5,030,212
327,372,629
Note 1) Derivative financial liabilities and off-balance accounts (payment guarantees and commitments) are excluded
(2) Applications of Funds
Category
Applications
2020 (187th term)
2019 (186th term)
2018 (185th term)
(Unit: KRW in billions, % )
Average
balance
Interest
rate
Average
balance
Interest
rate
%
Average
balance
Interest
rate
Deposits in KRW
Marketable Securities in KRW
Loans in KRW
Advance Payments on Acceptances and
Guarantees
Funds
in KRW
Call Loans in KRW
Privately Placed Bonds
Credit Card Receivables
Others
Allowance for Doubtful Accounts in KRW(-)
Subtotal
Deposits in Foreign Currencies
Marketable Securities in Foreign Currencies
Funds in
foreign
currencies
Loans in Foreign Currencies
Call Loans in Foreign Currencies
Bills Bought in Foreign Currencies
Others
Allowance for Doubtful Accounts in Foreign
Currencies(-)
Subtotal
495
47,180
229,678
14
522
68
0
2,439
-1,074
279,321
7,907
5,578
14,539
874
6,165
122
-248
34,937
0.63
1.84
2.68
3.66
1.02
3.30
0.00
1.52
0.00
2.53
0.39
1.56
2.30
1.04
1.32
4.15
0.00
1.57
112
%
0.1
981
14.0
45,341
68.1 216,362
0.0
0.2
0.0
0.0
0.7
14
693
83
0
3,041
-0.3
-1,151
82.8 265,365
2.3
1.7
4.3
0.3
1.8
0.0
5,476
4,619
13,683
1,492
6,505
71
-0.1
-229
10.4
31,616
1.66
2.10
3.21
1.30
1.76
2.80
0.00
2.56
0.00
3.01
1.91
2.09
3.41
2.61
2.71
2.12
0.00
2.80
0.3
3,264
14.2
35,898
67.8 203,432
0.0
0.2
0.0
0.0
1.0
16
1,334
136
-
5,562
-0.4
-1,198
83.1 248,445
1.7
1.4
4.3
0.5
2.0
0.0
3,665
3,467
11,347
2,365
7,275
33
-0.1
-391
9.9
27,761
1.52
2.16
3.22
1.95
1.67
2.89
0.00
2.10
0.00
3.03
1.29
1.30
3.14
2.07
2.70
3.31
0.00
2.50
%
1.1
12.1
68.7
0.0
0.5
0.0
0.0
1.9
-0.4
83.8
1.2
1.2
3.8
0.8
2.5
0.0
-0.1
9.4
2020 (187th term)
2019 (186th term)
2018 (185th term)
Category
Applications
Cash
Property, Plant and Equipment for Business
Others
Subtotal
Others
Total
Average
balance
Interest
rate
1,021
2,713
19,363
23,097
337,355
0.00
0.00
0.00
0.00
2.26
%
0.3
0.8
5.7
6.8
1,091
2,698
18,478
22,268
Average
balance
Interest
rate
Average
balance
Interest
rate
%
0.3
0.8
5.8
7.0
1,229
2,354
16,537
20,119
%
0.4
0.8
5.6
6.8
100.0
0.00
0.00
0.00
0.00
2.78
0.00
0.00
0.00
0.00
2.78
100.0
319,248
100.0
296,325
Note 1) Deposits in KRW = Deposits in KRW – Reverse deposits with BOK
Note 2) Marketable securities in KRW = Marketable securities in KRW + Loaned securities in KRW
* Interest for calculating interest rates = Securities interest (including dividend received) + Evaluation profit (net) + Gain on redemption of securities (net) + Portion
excluding the gain from stock transactions (net) out of gains on sales of securities
Note 3) Loans in KRW = Loans in KRW + Checks & bills on clearing for overdrafts
* Interest for calculating interest rates = Interest on loans in KRW – Contribution to the Korea Credit Guarantee Fund
Note 4) Deposits in foreign currencies = Deposits in foreign currencies + Offshore deposits in foreign currencies
Note 5) Marketable securities in foreign currencies = marketable securities in foreign currencies + Loaned securities in foreign currencies * Interest for calculating interest rates
= Securities interests (including dividend received) + Evaluation profit (net) + Gain on redemption of securities (net) + Portion excluding the gain from stock transactions
(net) out of gains on sales of securities
Note 6) Loans in foreign currencies = Loans in foreign currencies + Offshore loans in foreign currencies + Inter-bank loans in foreign currencies + Loans from foreign
borrowings + Domestic import issuance bills
Note 7) Cash = Cash – Total checks & bills in the process of collection
Note 8) Property, plant and equipment for business = Property, plant, and equipment for business – Accumulated depreciation
Note 9) Based on financial statements (K-IFRS)
Note 10) Excluding merchant banking accounts
The average balance of funds managed by Woori Bank in 2020 was KRW 279.3 trillion, a y-o-y increase of KRW 13.9 trillion. The main contributing factor
was an increase of KRW 13.3 trillion in loans in KRW. Out of all loans in KRW, household loans and corporate loans increased by KRW 5.8 trillion and KRW
7.5 trillion, respectively. Yields for loans in KRW declined 52bp from December 2019, notably due to the two interest rate cuts by the Bank of Korea in 2020.
Assets in foreign currency amounted to KRW 34.9 trillion, a y-o-y increase of KRW 3.3 trillion, and this was attributable to the increase of KRW 0.9 trillion
and KRW 1.0 trillion in loans in foreign currency and marketable securities, respectively. Woori Bank will stay committed to complying with the liquidity
requirements (for LDR, LCR, etc.) and maintaining a stable fund management structure.
■ Woori Card
(1) Sources of Funds
Category
Fund
Call Money
Borrowings
Funds in KRW
Debentures
Others
Subtotal
Debentures
Borrowings
Others
Subtotal
Total Equity
Funds in
Foreign
Currencies
Other
Total
(Unit: KRW in millions,%)
2020 (8th term)
2019 (7th term)
2018 (6th term)
Average
balance
Interest
rate
-
142,268
6,692,528
1,142,170
7,976,966
903,918
4,720
6,214
914,852
1,931,459
10,823,277
-
2.20
2.15
0.00
1.84
1.54
1.64
0.00
1.53
0.00
1.49
%
-
1.31
61.83
10.56
73.70
8.35
0.04
0.06
8.45
Average
balance
Interest
rate
-
-
6,733,067
1,006,939
7,740,005
736,986
4,662
6,556
748,204
-
-
2.31
-
2.01
1.95
3.31
-
1.94
%
-
-
65.77
9.84
75.60
7.20
0.05
0.06
7.31
Average
balance
Interest
rate
-
-
-
-
6,203,782
2.33
953,134
7,156,916
713,681
3,700
577
-
2.02
2.08
4.21
-
717,958
2.09
%
-
-
65.15
10.01
75.16
7.49
0.04
0.01
7.54
17.85
1,749,620
-
17.09
1,647,351
-
17.30
100.00
10,237,829
1.66
100.00
9,522,225
1.68
100.00
113
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(2) Applications of Funds
Category
Applications
Funds in
KRW
Cash and Deposits
Call Loans
Marketable Securities
Loans
Subtotal
Cash and Deposits
Funds in
Foreign
Currencies
Loans
Others
Subtotal
Properties, Plants and Equipment
and Intangible Assets
Others
Total
Other Assets
Subtotal
■ Woori Financial Capital
(1) Sources of Funds
Category
Fund
Deposits
Borrowings
Debentures
Others
Subtotal
Total Equity
Funds in KRW
Total
2020 (8th term)
2019 (7th term)
2018 (6th term)
Average
balance
Interest
rate
%
Average
balance
Interest
rate
%
Average
balance
Interest
rate
%
227,337
0.66
2.10
112,614
1.45
1.10
157,630
1.09
1.66
-
274,343
9,697,975
10,199,655
4,555
-
0.68
14.25
14.00
5.61
28,751
28.00
730
-
34,036
24.91
95,989
493,597
589,586
-
-
-
-
-
2.53
175,342
89.61
9,431,958
94.24
9,719,914
9,466
-
1.44
14.87
14.47
8.07
0.04
0.26
0.01
0.31
0.89
4.56
5.45
15,760
28.00
241
-
25,467
20.33
86,535
405,913
492,448
-
-
-
-
-
1.71
209,504
92.13
8,759,388
94.94
9,126,521
2,408
5,208
82
-
1.31
15.49
14.92
8.00
30.00
-
7,698
22.80
50,795
337,211
388,006
-
-
-
0.09
0.15
0.00
0.25
0.85
3.96
4.81
-
2.20
91.99
95.84
0.03
0.05
0.00
0.08
0.53
3.54
4.07
10,823,277
13.27
100.00 10,237,829
13.79
100.00
9,522,225
14.32
100.00
■ Woori Investment Bank
(1) Sources of Funds
2020 (49th term)
2019 (48th term)
2018 (47th term)
(Unit: KRW in millions, %)
Category
Fund
Average
balance
Interest
rate
%
Average
balance
Interest
rate
%
Average
balance
Interest
rate
Deposits
2,725,135
Borrowings in
KRW
Others
Subtotal
Total Equity
Provisions
Others
Subtotal
485,679
97,167
3,307,981
352,675
29,748
204,797
587,220
1.84
0.77
1.35
1.67
-
-
-
69.96
2,282,715
12.47
111,690
2.49
0
84.92
2,394,405
9.05
0.76
5.26
337,102
29,889
126,364
15.08
493,355
2.24
1.43
0.00
2.21
-
-
-
-
79.05
1,892,535
3.87
0.00
712
0
82.92
1,893,247
11.67
337,102
1.04
4.38
27,894
265,655
17.08
630,651
2.03
1.64
0.00
2.03
-
-
-
-
3,895,201
1.42
100.00
2,887,760
1.83
100.00
2,523,899
1.53
100.00
Funds
in KRW
Others
Total
%
74.98
0.03
0.00
75.01
13.36
1.11
10.53
24.99
Note) Based on financial statements (K-IFRS)
(2) Applications of Funds
2020 (27th term)
2019 (26th term)
2018 (25th term)
Deposits in KRW
156,487
0.68
4.02
157,946
1.73
5.47
167,363
1.64
6.63
(Unit: KRW in millions,%)
Category
Applications
2020 (49th term)
2019 (48th term)
2018 (47th term)
Average
balance
Interest
rate
%
Average
balance
Interest
rate
%
Average
balance
Interest
rate
%
(Unit: KRW in millions, %)
Average Balance
% Average Balance
% Average Balance
1,018,977
316,053
5,702,577
313,244
7,350,851
825,528
8,176,379
12.5%
3.9%
69.7%
3.8%
89.9%
10.1%
100.0%
780,379
150,171
4,564,909
473,248
5,968,707
774,816
6,743,523
11.6%
2.2%
67.7%
7.0%
88.5%
11.5%
100.0%
882,613
253,825
3,589,950
255,192
4,981,580
715,172
5,696,752
%
15.5%
4.4%
63.0%
4.5%
87.4%
12.6%
100.0%
Note) Based on consolidated financial statements (K-IFRS)
(2) Applications of Funds
Category
Cash and Deposits
Marketable Securities
Financial Bonds
Lease Assets
Investments in Associates and
Joint Ventures
Properties, Plants and Equipment
Intangible Assets
Other Assets
Total
2020 (27th term)
2019 (26th term)
2018 (25th term)
(Unit: KRW in millions,%)
Average Balance
% Average Balance
% Average Balance
355,250
514,208
6,060,089
1,057,140
1,569
6,908
61,238
119,977
8,176,379
4.3%
6.3%
74.1%
12.9%
0.0%
0.1%
0.8%
1.5%
100.0%
323,489
341,417
5,050,958
846,826
2,126
7,131
68,789
102,787
6,743,523
4.8%
5.1%
74.9%
12.6%
0.0%
0.1%
1.0%
1.5%
346,126
330,233
4,239,526
622,248
3,111
4,989
67,884
82,635
100.0%
5,696,752
100.0%
%
6.1%
5.8%
74.4%
10.9%
0.1%
0.1%
1.2%
1.4%
Marketable securities in
KRW
1,318,262
1.86
33.84
802,499
2.74
27.79
540,982
3.33
21.43
Funds
in KRW
Loans in KRW
1,900,569
Privately placed bonds
318,707
Others
Allowance for doubtful
accounts in KRW (-)
-
(16,533)
4.93
4.76
-
-
48.79
1,394,034
8.18
0.00
363,269
0
5.30
4.99
0.00
48.27
12.58
0.00
1,071,107
387,406
0
4.95
4.86
0.00
42.44
15.35
0.00
(0.42)
(13,821)
-
-0.48
(11,829)
-
-0.47
Subtotal
3,677,492
3.66
94.41
2,703,926
4.32
93.63
2,155,028
4.30
85.38
Funds in
foreign
currencies
Deposits in Foreign
Currencies
Marketable Securities
in Foreign Currencies
Subtotal
Cash
Property, plant and
equipment for business
Others
Subtotal
Others
Total
Note) Based on financial statements (K-IFRS)
1,340
-
0.03
1,438
0.04
0.05
1,524
0.15
0.06
2,826
(14.18)
4,166
(9.62)
15
7,186
206,342
213,543
-
-
-
-
0.07
0.11
-
0.18
5.30
5.48
2,623
4,061
0
9,415
170,358
179,772
2.45
1.60
0.00
-
-
-
0.09
0.14
0.00
0.33
5.90
6.22
2,281
-0.48
3,805
0
9,757
355,308
365,065
-0.23
0.00
-
-
-
0.09
0.15
0.00
0.39
14.08
14.46
3,895,201
3.44
100.00
2,887,760
4.05
100.00
2,523,899
3.67
100.00
Note) Based on consolidated financial statements (K-IFRS)
114
115
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 ■ Woori Asset Trust
(1) Sources of Funds
Category
Total Liabilities
Other Liabilities
Other Account Payables
Withholdings
Advance Receipts
Accrued Income Tax
Lease Liabilities
Unearned Income
Accrued Dividends
Leasehold Deposits
Allowance for Severance Benefits
Allowance for Trust Risk
Total Equity
Total
Note) Based on separate financial statements (K-IFRS)
(2) Applications of Funds
Category
Total Assets
Cash and Deposits
Marketable Securities
Loans
Premises and Equipment
Other Assets
Total
(Unit: KRW in millions)
2020 (21st term)
2019 (20th term)
2018 (19th term)
(2) Applications of Funds
(Unit: KRW in millions,%)
Balance
56,396
56,396
7,523
1
37,553
7,514
1,547
-
635
-
-
1,620
129,237
185,634
Balance
185,634
148,871
1,405
22,287
4,522
8,549
2020
%
30%
30%
4%
20%
4%
1%
-
-
-
1%
70%
100%
2020
%
100%
80%
1%
12%
2%
5%
Balance
45,410
45,410
9,081
1
24,552
4,857
2,443
-
656
-
-
3,820
94,429
139,839
Balance
139,839
67,564
655
57,704
3,983
9,933
2019
%
32%
32%
6%
18%
3%
2%
-
-
-
3%
68%
100%
2019
%
100%
48%
1%
41%
3%
7%
Balance
37,333
37,333
2,292
1
26,040
6,462
-
102
656
-
230
1,550
76,453
113,786
2018
%
27%
27%
2%
19%
5%
-
-
1%
55%
100%
(Unit: KRW in millions)
Balance
113,786
61,514
6,935
35,397
2,539
7,401
2018
%
100%
54%
6%
31%
2%
7%
100
185,634
100%
139,839
100%
113,786
Category
Applications
Cash and Deposits
Securities Available for Sale
Financial Assets at Fair Value
through Profit or Loss (FVTPL)
Financial Assets at Fair Value
through Other Comprehensive
Income
Investments in Associates
Derivatives
Loans
Properties, Plants and Equipment
Other Assets
Accrued Income
Deferred Tax Assets
Subtotal
Cash and Deposits
Securities Available for Sale
Financial Assets at Fair Value
through Profit or Loss (FVTPL)
Financial Assets at Fair Value
through Other Comprehensive
Income
Subtotal
Funds in KRW
Funds in
foreign
currencies
Total
Average
Balance
25,832
-
72,097
1,358
3,130
103
541
1,237
6,496
4,759
1,063
110,793
378
-
11,008
%
20.71
-
57.79
1.09
2.51
0.08
0.43
0.99
5.21
88.81
0.30
0.00
8.82
Average
Balance
24,757
-
48,619
%
23.10
0.00
45.37
Average
Balance
31,621
13,805
17,754
%
32.02
13.98
17.98
11,394
10.63
10,617
10.75
3,240
25
100
848
7,541
5,329
1,639
96,524
-
-
6,034
3.02
0.02
0.09
0.79
7.04
90.08
0.00
0.00
5.63
1,230
228
180
246
7,832
5,471
1,774
83,512
4,803
5,318
3,098
1.25
0.23
0.18
0.25
7.93
84.56
4.86
5.38
3.14
2,569
2.06
4,601
4.29
2,032
2.06
13,955
124,748
11.19
100.00
10,635
107,159
9.92
100.00
15,250
98,762
15.44
100.00
Note) Based on consolidated financial statements (K-IFRS) for 2020 and separate financial statements (K-IFRS) for 2019 and 2018
■ Woori Savings Bank
(1) Sources of Funds
The average balance of funds sourced by Woori Savings Bank in 2020 was KRW 1,173.6 billion, a y-o-y increase of KRW 62.4 billion. The average
balance of funds in Korean won was KRW 1,051.0 billion, which was primarily sourced from deposits from customers to ensure stable liquidity.
Note) Based on separate financial statements (K-IFRS)
(2) Applications of Funds
■ Woori Asset Management
(1) Sources of Funds
Category
Liabilities
Derivatives
Other Liabilities
(Accrued Income Tax)
(Accrued Expense)
(Others)
Total Equity
Sources (Total Liabilities and Equity)
2020 (21st term)
2019 (20th term)
2018 (19th term)
(Unit: KRW in millions,%)
Average Balance
% Average Balance
% Average Balance
14,854
-
14,854
1,515
2,658
10,681
109,894
124,748
12
0
100
10
18
72
88
100
4,921
-
4,921
1,506
2,428
987
102,238
107,159
5
0
100
31
49
20
95
100
3,930
14
3,915
1,416
2,099
400
94,832
98,762
%
4
0
100
36
54
10
96
100
Note) Based on consolidated financial statements (K-IFRS) for 2020 and separate financial statements (K-IFRS) for 2019 and 2018
116
The average balance of funds managed by Woori Savings Bank in 2020 was KRW 1,138.8 billion, a y-o-y increase of KRW 62.8 billion. It is being
managed consistently to comply with the liquidity regulations and maintain an adequate fund management structure.
5. Off-Balance Sheet Activities
■ Woori Financial Group
(1) The guarantees of payment at the end of 2020, 2019 and 2018 are as follows:
Category
Confirmed Guarantees
Guarantees for Loans
Acceptances
Acceptances for L/G
Other Confirmed Guarantees
Subtotal
End of the 2nd (Current) Term
End of the 1st (Previous) Term
End of 2018
(Unit: KRW in millions)
103,229
602,014
78,395
6,491,608
7,275,246
89,699
391,688
224,746
6,982,889
7,689,022
125,870
371,525
158,179
6,452,791
7,108,365
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Category
Unconfirmed Guarantees
Guarantees for Local L/C
Guarantees for Import L/C
Other Unconfirmed Guarantees
Subtotal
CP Purchase Commitments and Others
Total
(2) Loan Agreements, etc.
End of the 2nd (Current) Term
End of the 1st (Previous) Term
End of 2018
(2) Employees and Other Matters
187,146
3,025,923
403,652
3,616,721
917,489
11,809,456
193,096
3,081,390
771,378
4,045,864
884,031
12,618,917
305,057
3,322,731
669,677
4,297,465
1,260,587
12,666,417
Woori Bank, a major subsidiary of Woori Financial Group, creates a human resources management plan based on changes in the business environment
and the direction of its strategies to be better prepared for foreseeable changes in manpower in the long run. Through ongoing recruitment and CDP
control effects, Woori Bank has secured some of the best human resources in the industry, including personal and corporate banking experts and the
future leaders of the FinTech business. Meanwhile, as of the end of 2020, Woori Bank’s regular employees consist of business unit and group heads (26%),
managers (27%), and clerks or lower-level employees (47%) in a pyramid structure.
C. Matters on Statutory Regulations
As a financial holding company, Woori Financial Group complies with the Financial Holding Companies Act, the Act on Corporate Governance of Financial
Companies and other relevant legislations.
(Unit: KRW in millions)
The main contents of the Financial Holding Companies Act are as follows:
Category
Loan Agreements
Other Agreements (*)
End of the 2nd (Current) Term
End of the 1st (Previous) Term
112,088,680
7,827,774
103,651,674
5,993,608
End of 2018
97,796,704
5,041,314
(*) The amount of bill of sale for qualified endorsement (sales from bills bought) and the discount from short-term electric credit facilities (purchase) at the end of 2020, 2019
and 2018 include KRW 2,894,688 million, KRW 2,582,274 million and KRW 2,968,190 million, respectively.
For off-balance sheet activities, please refer to ‘Note 40. Contingent Liabilities and Commitments’ in [III. Matters on Financials / 3. Notes for Consolidated
Financial Statements] in this report.
■ Woori Bank
Category
Guarantees
Agreements
Confirmed Guarantees
Unconfirmed Guarantees
CP Purchase Commitments
and Others
Loan Agreements
Other Agreements
2020 (187th term)
7,137,891
3,616,721
917,489
74,944,921
5,089,094
(Unit: KRW in millions)
2019 (186th term)
7,689,022
4,045,864
884,031
70,303,900
3,204,654
6. Other Issues Required for Making Investment Decisions
A. Matters on Key Accounting Policies and Changes in Estimates
Please refer to ‘Note 2. Standards applied in the preparation of (Consolidated) Financial Standards and Key Accounting Policies’ and ‘Note 3. Key
Accounting Estimates and Assumptions’ in [III. Matters on Finance / 3. Note on Consolidated Financial Statements and 5. Note on Financial Statements] of
this report.
B. Environmental Impact and Employees
(1) Environmental Impact
Since Woori Financial Group’s businesses involve providing financial services (banking, credit card, capital, etc.) that do not have an environmentally
destructive impact, it is neither currently paying nor likely to have to pay for any environmental restoration or compensation for damages in the future. It
has not been subject to administrative measures from the government or environmental authorities, nor is it expected to be in the future. In December
2020, Woori Financial Group declared its plans to end coal finance to emerge as a carbon-neutral financial group in an effort to lead the financial sector
in combating climate change, joined the Carbon Disclosure Project (CDP) and endorsed the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD), in addition to setting for mid- and long-term roadmaps for green management. Woori Bank, a major affiliate of Woori
Financial Group, has been designated as a company subject to building management, pursuant to Article 42 (6) of the Framework Act on Low Carbon,
Green Growth, and assigned greenhouse (GHG) gas emission and energy consumption reduction targets by the government. It has been strengthening its
environmental management and achieving the GHG reduction targets. For more details, please refer to [XI. Other Issues Required for Protecting Investors /
3. Environmental Sanctions, and etc. / E. Green Management Issues].
1. Incorporation of financial holding companies
2. Restriction on ownership of financial holding companies
3. Business affairs of financial holding companies and inclusion of companies as subsidiaries thereof
4. Operation of financial holding companies
5. Supervision of financial holding companies
The main contents of the Act on Corporate Governance of Financial Companies are as follows:
1. Qualifications for operating officers and the establishment of an appointment procedure for major operating officers
2. Reinforced qualifications for outside directors and procedures for nominating candidates for executive officers
3. Composition of the Board centered on outside directors and bolstering the authority of the Board
4. Establishment and disclosure of internal rules on governance
5. Qualifications for members of the Audit Committee and improvement of the appointment procedure thereof
6. Improvement of the risk management scheme and remuneration system
7. Introduction of a regular examination on the eligibility of major shareholders
D. Derivatives and Risk Management Policy
(1) Derivatives (Woori Bank)
Woori Bank offers derivatives mainly to corporate customers. Since companies are exposed to various risks, such as interest rate hikes and fluctuations
in stock prices and exchange rates, there is a need to hedge these risks. Woori Bank offers a wide array of derivatives to companies to meet their hedging
needs. Derivatives are also traded to hedge interest rate and foreign exchange risks associated with the bank’s assets and liabilities. The total value of
derivatives outstanding amounted to KRW 324,071 billion in 2018, KRW 372,543 billion in 2019, and KRW 355,155 billion in 2020.
While banks primarily use derivatives to avoid the risk of loss in relation to the assets held, such transactions are somewhat complicated and can be risky,
which is why a limit is placed on the transaction amount and losses that can be incurred so as to prevent excessive losses in advance. Also, when it comes
to atypical transactions (structured derivatives) or trading of Hybrid Derivative Products, the Risk Oversight Department dedicated to risk management
performs a prior review of potential risks, followed by deliberation by the Risk Management Committee, in order to proceed. In addition, the possibility of
losses is minimized by separating the duties of the trading part (front office), risk management part (middle office) and follow-up management part (back
office) so that they can keep one another in check.
(2) Overview of Risk Management Policy
Woori Financial Group Inc. develops strategies to remove excessive risks and manage risks at an adequate level in order to maximize revenue relative to
risks. To this end, procedure is to first recognize the risk, measurement and assess it and then control and monitor and report it. Risk is managed by the
Risk Management Department based on policy resolutions. The Risk Management Committee makes decisions on risk strategies including the allocation
of any capital at risk and the approval of loss limits as the top decision-making body for risk management.
The Group’s risk management principles are as follows:
- All business activities must be per formed in consideration of the balance between risk and revenue, within the scope of the preset risk thresholds.
- Decision making systems regarding risk must be operated in a way that allows sufficient consideration of risk by the management
- Risk management organization must be composed and operated independently from business departments
- Performance management systems must be operated to allow for the clear consideration of risks when making business decisions
- Even during normal times, precautionary views must be shared in preparation for the possible worsening of situations
- The holding company oversees the risk management of its subsidiaries
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 2) Risk Management Organization
① Risk Management Committee
The Risk Management Committee performs the role of comprehensively managing and controlling risks at the Group level, in order to promptly recognize,
measure, monitor and control risks that may arise in the course of business management by the holding company and subsidiaries thereof.
The major roles of the Risk Management Committee are as follows:
- Establishment of basic risk management policies and strategies:
ㆍ The Risk Management Committee establishes basic policies and strategies, including a risk management philosophy and risk management principles,
for systematic management of risks.
- Determination of permissible risk level:
ㆍ Each year, the Risk Management Committee determines the overall permissible risk level for the Group and each subsidiary by taking into consideration
the economic and financial environment at home and abroad.
- Approval of investment limits and maximum permissible loss:
ㆍ The amount of risk capital out of all available capital is determined according to the risk tolerance determined annually, and it is allocated to each
subsidiary and according to the risk type.
- Establishment and revision of risk management regulations and the regulations of the Group Risk Management Council:
ㆍ Risk management regulations and the regulations of the Group Risk Management Council are established and implemented for optimal risk
management, and they are revised or abolished, as necessary.
- Other
ㆍ The Risk Management Committee deliberates on matters concerning the risks that accompany important management decisions at the Group level
requiring a resolution of the BOD, including changes to the organization, commencement of new businesses and large investments, and gets briefed on
the current status and major issues of risk management of the Group.
② Group Risk Management Council
The Group Risk Management Council has the authority to deliberate on necessary details in relation to carrying out the risk management policies
established by the Risk Management Committee at the level of the holding company and subsidiaries. The Council also reaches resolution on matters
delegated by the Risk Management Committee and performs the role of understanding the current status of risk management of the Group as a whole
and each subsidiary as well as exchanging information on risk management among subsidiaries.
The major roles of the Group Risk Management Council are as follows:
- Matters for Resolution
ㆍ Matters delegated by the Committee
ㆍ Matters requiring resolution of the Council, as specified by the regulations of the Group Risk Management Council
ㆍ Enactment and abolishment of guidelines on risk management. Provided, heads of departments in charge of risk management are delegated authority
to copy and incorporate in full any changes to higher regulations such as relevant legislations and regulations of supervisory authorities and to make
simple revisions to terminology or phrases, and shall report to the Council ex-post.
- Matters for Deliberation
ㆍ Matters concerning agenda tabled by the Committee (Provided, agenda for deliberation may be omitted when deemed necessary by the risk
management officer of the holding company)
ㆍ Important matters among matters for resolution by the Risk Management Committees of subsidiaries and result of implementation thereof
ㆍ Adjustments to the classification of asset quality or allowances for questionable accounts in accordance with criteria set by the Committee
ㆍ Matters concerning the introduction of a new product at the Group level
ㆍ Matters the Chair is requested to deliberate on by a member or matters recognized by the Chair to be in need of deliberation
- Matters for Report
ㆍ Status of progress and management of matters deliberated or resolved by the Council
ㆍ Other matters deemed necessary by the Council
③ Risk Management Department
The Risk Management Department is responsible for overseeing the risk management affairs of the financial holding company and its subsidiaries,
including the monitoring, control and reporting of risks. The department operates independently from departments within the financial holding company
and business (support) departments of subsidiaries.
(3) Credit Risk
Credit risk refers to the potential financial losses that the Bank may incur when a counterparty becomes insolvent or refuses its financial obligations within
the period specified in the contract. The goal of credit risk management is to keep the credit risk exposure to a permissible level and to optimize its rate of
return in reflection of the risks.
1) Management of Credit Risk
Woori Financial Group measures credit risk by taking into account the possibility of non-performance of contract obligations by a customer or counterparty,
exposure to credit risk in relation to a counterparty, a counterparty’s exposure to the risk of insolvency, the rate of loss upon insolvency and other factors. A
credit rating assessment model is used to assess the possibility of defaulting by a counterparty, and credit ratings are assessed by applying a quantitative
method using financial statements and other data, a statistical method of calculating the credit score, judgment by evaluators, etc.
In order to manage credit risk limits, Woori Financial Group calculates the ceiling for credit extension for each joint borrowers, company, industry, etc. based
on joint borrower management, total exposure management and portfolio management.
Woori Financial Group uses a set of techniques to lower the credit risk of assets by purchasing financial collateral, physical collateral, guarantees, on-
balance-sheet items and credit derivatives, which have little correlation with the borrower’s credit status. Woori Financial Group applies the comprehensive
method among credit risk reduction techniques, and the amount of credit risk reduction is reflected for eligible financial collateral, trade receivables,
guarantees, commercial and residential real estate properties and other collateral that are applicable for the approach applied. Furthermore, the collateral
used for credit risk reduction is re-evaluated on a regular basis.
2) Maximum Exposure
Maximum exposure of financial assets to credit risk indicates the uncertainty of maximum volatility in the net value of the financial assets due to volatility
in a particular risk factor, before considering the book value of collateral after allowances or other credit enhancement. Provided, the maximum exposure
to credit risk of derivatives is the on-balance sheet fair value amount, that of payment guarantee is the maximum amount payable upon claims by the
principal debtor pursuant to the guarantee contract, and that of loan agreement is undrawn commitment.
(4) Market Risk Management
Market risks refer to potential losses that can be incurred from trading positions of a financial institution according to changes in market factors, such as
interest rates, stock prices, and exchange rates.
1) Trading Market Risk
Market risk management involves the process of making and applying decisions to avoid, take or reduce risks by identifying the sources of risk for each
risk factor, measuring the magnitude of the identified risk sources and evaluating whether the level of market risk assumed is appropriate.
Woori Financial Group Inc. uses both a standard approach and an internal model (Woori Bank) to measure market risks and the Risk Management
Committee allocates the market risk capital. The risk management departments of the Group and subsidiaries manage detailed ceilings including risk limit
and loss limit of trading positions. The result of risk management is reported regularly to the Risk Management Committee.
For the trading segment, Group-wide market risk is managed by the standard method of the FSS, while Woori Bank measures Value at Risk (VaR) to
manage and measure market risk in order to predict the market risk of its trading positions and the maximum loss expected. The VaR method, which
involves using statistical techniques, is designed to estimate potential losses in the portfolio that may be incurred by unfavorable volatility in the market at
a certain time in the present or future. The result produced by using this method is an estimated maximum loss at a 99% confidence level, which means
that it is statistically possible (1% probability) that the actual loss turns out to be larger than what was estimated by VaR. The actual losses incurred are
monitored on a regular basis for the purpose of reviewing the feasibility of assumptions, variables and factors used when calculating VaR. This approach,
however, does not prevent losses in excess of the limit when there is greater market volatility.
2) Interest Rate Risk
In the case of Woori Bank, interest rate risks in the non-trading sectors are measured and managed based on the change in net interest income (△NII ) and
change in economic value of equity (△NEVE) according to the interest rate risk in the banking book (IRRBB) introduced in late 2019.
△NII represents changes in net interest income that may occur over a certain period of time (e.g. one year) in the future due to changes in interest rates,
while △EVE represents fluctuations in the economic value of equity capital that may occur due to changes in interest rates affecting the present values of
assets, liabilities and off-balance sheet items.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 The subsidiaries of the Group, other than Woori Bank, measure and manage interest rate risk using earnings at risk (EaR) and value at risk (VaR) in
association with interest rates.
EaR represents the maximum change expected in profit or loss corresponding to the maximum decrease in net interest income that can occur over a
certain period of time (e.g. one year) in the future due to changes in unfavorable fluctuations in interest rates. VaR is the maximum expected loss, which
represents the maximum decrease in net asset value that can potentially occur at present or a specific point in time in the future due to unfavorable
fluctuations in interest rates.
(5) Liquidity Risk
Liquidity risk refers to the risk of failing to perform the payment obligation at maturity on financial liabilities that consolidated companies bear.
Liquidity risk management is aimed at preventing potential losses arising from a shortage of funds by effectively managing liquidity crunches caused by
disparities in the maturity of assets and liabilities or unexpected outflow of funds. Products relevant to liquidity risk that recognized as financial liabilities on
the consolidated financial statements are subject to liquidity risk management.
In managing liquidity risk, Woori Financial Group Inc. groups assets and liabilities according to a different ALM chart of accounts, then determines the
maturity gaps and gap ratios from cash flow statements by time group (time to maturity or contract periods). Based on the outcomes, Woori Financial
Group maintains the gap ratios within predetermined target ratios (limits).
(6) Operational Risk
Woori Financial Group defines operational risks as the potential risk of loss that could result from inadequate internal processes, personnel and systematic
factors, as well as external factors.
To reinforce competitiveness, reduce the amount of risk capital, enhance operational risk management competencies and prevent any unexpected
incidents, Woori Bank has established an operational risk management system developed under Basel II. The objectiveness of operational risk
management system has been tested internally and by an independent third party. The advanced measurement approach was submitted to and obtained
approval from the FSS.
(7) Capital Management
Woori Financial Group Inc. complies with the capital adequacy standards put forth by financial supervisory bodies that are based on Basel III of the Basel
Committee on Banking Supervision under the Bank for International Settlements. These standards were introduced in Korea at the end of December 2013.
In late September 2020, 「Basel III: Finalizing post-crisis reforms」 was introduced for credit risk management.
The capital adequacy ratio is calculated by dividing total capital by total risk-weighted assets, based on consolidated financial statements.
E. Matters Concerning Overseas Subsidiaries
Due to the stagnant growth of the domestic financial market, Woori Bank, a major subsidiary of Woori Financial Group, has been laying the groundwork for
global operations by expanding regional networks in Southeast Asia, boasting high growth potential in consideration of NIM, branch and financial inclusivity
and economic growth rate. Woori Bank is continually pursuing localization through M&As with local banks (Indonesia, the Philippines and Cambodia) and
the conversion of existing branches into local subsidiaries (Vietnam), while seeking to diversify its business portfolio by entering new markets through
savings banks and non-banking financial firms. In addition to the existing business segments, Woori Bank is also striving to develop new markets by
conducting market surveys to discover new business areas. As of the end of December 2020, Woori Bank has a global network of 447 places of business.
Woori Bank, in particular, will continue to expand its global operations based on the strategy to expand its customer base and growth potential with
financially sound assets, reinforce its competencies by applying a wide array of business models and bolstering its global digital banking services. It is also
noteworthy that the company is in the process of building a company-wide system to support and manage global operations by nurturing global examiners
and improving its risk management system, through which it is endeavoring to achieve quantitative and qualitative growth.
As of the end of 2020, the status of foreign subsidiaries of the Group are as follows:
Capital Adequacy Ratio
Asset Quality
Profitability
Liquidity
BIS Capital
Adequacy
Ratio
BIS Tier 1
Capital
Ratio
Tangible
Common
Equity
Ratio
Loss-Risk
Weighted
Loan
Ratio
Substandard
and
Below Ratio
Ratio of
Allowance
for
Credit
Loss
Ratio of
Delinquent
Loans
ROA
Expense
Ratio to
Total
Assets
Cost to
Income
Ratio
Foreign
Currency
Liquidity
Ratio
(Unit: %)
16.13
15.72
12.36
0.83
0.7
70.78
0.66
0.6
2.28
70.48
94.35
17.8
17.58
9.37
3.69
1.5
14.95
1.97
0.17
1.07
74.31
163.61
16.97
16.18
14.1
5.26
1.08
132.33
1.22
0.96
1.79
47.28
63.29
15.72
15.24
12.53
29.11
6.29
26.49
6.75
0.62
3.93
80.45
102.29
26.49
26.26
17.6
0.65
0.26
223
0.28
0.81
1.76
64.44
111.45
28.54
27.76
28.77
0.33
0.26
438.93
0.26
4.17
5.02
46.63
158.44
18.42
18.34
13
17.74
7.23
101.99
7.23 △4.02
1.82
116.49
89.14
44.91
44.75
15.19
13.52
13.32
14.18
-
-
-
-
-
-
56.36
56.11
27.06
3.61
4.12
36.24
-
-
0
1.05
2.59
52.06
782.85
0.86
1.29
50.19
97.42
0.7
0.85
47.53
92.18
Category
(Percentage of
Ownership)
Woori America
Bank
(100.00%)
China Woori Bank
(100.00%)
Indonesia Woori
Saudara Bank
(79.88%)
Wealth
Development
Bank
(51.00%)
Vietnam Woori
Bank
(100.00%)
Woori Finance
Cambodia
(100.00%)
Europe Woori
Bank
(100.00%)
Brazil Woori Bank
(100.00%)
Russia Woori Bank
(100.00%)
Hong Kong Woori
Investment Bank
(100.00%)
■ Korea BTL Infrastructure Fund
Korea BTL Infrastructure Fund (“the Company”) is a collective investment vehicle as defined by the Act on Public-Private Partnerships in Infrastructure and
an investment company as per the Financial Investment Services and Capital Markets Act. The major shareholder, Woori Bank, has committed to invest a
total of KRW 1.3 trillion in the Company under a purchase agreement valid until June 4th, 2036 (extendible for up to six years).
As of end of December 2020, funds under management of the Company are fully financed by equity capital and the major shareholder, Woori Bank, has
been executing equity investment through capital call since the incorporation of the Company. The Company currently invests in or extends loans to project
concessionaires, concentrating on highly stable projects whose principal and interest of investment are either paid or compensated by the government.
Invested projects include one BTO project, 43 BTL projects and 2 government cost compensation projects. Maintaining this tendency, investments will be
made gradually with the outstanding commitment under the purchase agreement.
The Company is maintaining a robust return on investment (ROI). (KRW 768.4 billion in capital and ROI of 4.64%, as of the end of December 2020 [internal
rate of return (IRR) since incorporation under the assumption that the investment principal will be recovered at the end of 2020]). Most of the investment
assets are BTL projects, where the payment of the principal and interest is tied to the yield on five-year government bonds, and as such, the returns are
likely to fluctuate with the yields of the bonds in question. As of the end of December 2019, the ROI under the same assumption was 4.79%, a slight decline
year-over-year, and this was attributable to a decrease in the return on five–year government bonds.
Currently, the Company is both making and redeeming investments. Following the recovery schedules for each invested project, the principals of
investment will be recovered quarterly over the duration of the fund, once the investment is complete. Depending on whether new investments will be
executed by the Company, either a capital increase of the Company or a redemption on investment by shareholders will be carried out systematically.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 INDEPENDENT AUDITOR’S REPORT
(English Translation of a Report Originally Issued in Korean)
To the Board of Directors and Shareholders of Woori Financial Group Inc.
Auditor’s Responsibilities for the Audit of the Financial Statements
Opinion
We have audited the accompanying separate financial statements of Woori Financial Group Inc. (the Company), which comprise the separate
statement of financial position as of December 31, 2020, and the statement of comprehensive income, separate statement of changes in equity
and separate statement of cash flows for the year then ended, and notes to the separate financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of Woori Financial
Group Inc. as of December 31, 2020, and its separate financial performance and its separate cash flows for the year then ended in accordance with
International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).
We also have audited, in accordance with Korean Standards on Auditing, the Company's Internal Control over Financial Reporting as of December 31,
2020, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting, and our report dated March 12, 2021,
expressed an unqualified opinion
Basis for Opinion
We conducted our audit in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with
the ethical requirements of the Republic of Korea that are relevant to our audit of the financial statements and we have fulfilled our other ethical
responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Key Audit Matter
No key audit matter is identified to be described in this audit report.
Emphasis of Matter
Without modifying our opinion, we draw attention to Note 3 of the financial statements, which indicates that the outbreak of COVID-19 in 2020 may
have a negative impact on the Company’s financial condition and results of operations.
Other Matters
The separate financial statements of the Company for the year ended December 31, 2019, were audited by Deloitte Anjin LLC auditor who expressed
an unqualified opinion on those statements on March 16, 2020.
Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such
separate financial statements may differ from those generally accepted and applied in other countries.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with Korean IFRS, and
for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the
Company or to cease operations.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of
the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Sung-Jae Lim, Certified Public Accountant.
Samil Pricewaterhouse Coopers Seoul, Korea
March 12, 2021
This report is effective as of March 12, 2021, the audit report date. Certain subsequent events or circumstances, which may occur between the
audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes
thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised
to reflect the impact of such subsequent events or circumstances, if any.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 WOORI FINANCIAL GROUP INC.
SEPARATE STATEMENTS OF FINANCIAL POSITION
WOORI FINANCIAL GROUP INC.
SEPARATE STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2020 AND 2019
AS OF DECEMBER 31, 2020 AND 2019
ASSETS
Cash and cash equivalents (Notes 5 and 30)
Financial assets at fair value through profit or loss (“FVTPL”) (Notes 4, 6, 9 and
17)
Financial assets at fair value through other comprehensive income ("FVTOCI")
(Notes 4, 7 and 9)
Loans and other financial assets at amortized cost (Notes 4, 8, 9 and 30)
Investments in subsidiaries (Notes 10 and 30)
Premises and equipment (Notes 11 and 30)
Intangible assets (Note 12)
Net defined benefit asset (Note 15)
Current tax assets (Note 27)
Deferred tax assets (Note 27)
Total assets
LIABILITIES
Debentures (Notes 4, 9 and 13)
Provisions (Note 14)
Net defined benefit liability (Note 15)
Current tax liabilities (Note 27)
Deferred tax liabilities (Note 27)
Other financial liabilities (Notes 4, 9, 16, 30 and 31)
Other liabilities (Note 16)
Total liabilities
EQUITY (Note 18)
Capital stock
Hybrid securities
Capital surplus
Other equity
Retained earnings
Total equity
Total liabilities and equity
December 31,
December 31,
2020
2019
(Korean Won in millions)
69,176
7,247
149,614
619,117
21,562,229
12,538
5,282
3,509
307
964
22,429,983
1,147,503
782
-
215,071
-
22,085
570
1,386,011
3,611,338
1,895,322
14,874,084
(1,518)
664,746
21,043,972
22,429,983
43,670
9,434
-
1,269,203
19,873,593
7,383
3,310
-
-
-
21,206,593
947,679
600
3,482
133,526
154
10,745
4,142
1,100,328
3,611,338
997,544
14,874,084
(631)
623,930
20,106,265
21,206,593
The accompanying notes are part of this financial statements.
WOORI FINANCIAL GROUP INC.
WOORI FINANCIAL GROUP INC.
SEPARATE STATEMENTS OF COMPREHENSIVE INCOME
SEPARATE STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2020
AND FOR THE PERIOD FROM JANUARY 11, 2019 (DATE OF INCORPORATION)
FOR THE YEAR ENDED DECEMBER 31, 2020 AND FOR THE PERIOD FROM JANUARY 11, 2019 (DATE OF INCORPORATION) TO
TO DECEMBER 31, 2019
DECEMBER 31, 2019
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
(Korean Won in millions)
Interest income
Interest expense
Net interest income (Notes 9, 20 and 30)
Fees and commissions income
Fees and commissions expense
Net fees and commissions loss (Notes 21 and 30)
Dividend income (Notes 22 and 30)
Net gain(loss) on financial instruments at FVTPL
(Notes 9 and 23)
Reversal(Provision) of impairment losses due to
credit loss (Notes 24 and 30)
General and administrative expenses (Notes 25 and
30)
Operating income
Non-operating expense (Note 26)
Net income before income tax expense
Income tax income(expense) (Note 27)
Net income
Net loss on valuation of equity securities at FVTOCI
Remeasurement loss related to defined benefit plan
Items that will not be reclassified to profit or loss:
Other comprehensive loss, net of tax
Total comprehensive income
Earnings per share (Note 28)
Basic and diluted earnings per share (Unit: In Korean
Won)
10,082
(23,035)
(12,953)
805
(16,199)
(15,394)
680,375
(920)
116
(56,472)
594,752
(215)
594,537
781
595,318
(280)
(607)
(887)
(887)
594,431
7,741
(7,701)
40
-
(15,833)
(15,833)
676,000
9,434
(263)
(39,941)
629,437
(750)
628,687
(394)
628,293
-
(631)
(631)
(631)
627,662
757
900
The accompanying notes are part of this financial statements.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
WOORI FINANCIAL GROUP INC.
SEPARATE STATEMENTS OF CHANGES IN EQUITY
WOORI FINANCIAL GROUP INC.
SEPARATE STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2020
AND FOR THE PERIOD FROM JANUARY 11, 2019 (DATE OF INCORPORATION)
FOR THE YEAR ENDED DECEMBER 31, 2020 AND FOR THE PERIOD FROM JANUARY 11, 2019 (DATE OF INCORPORATION) TO
TO DECEMBER 31, 2019
DECEMBER 31, 2019
Capital
stock
Capital
surplus
Hybrid
securities
(Korean Won in millions)
Other
equity
Retained
earnings
Total
equity
January 11, 2019 (Date of incorporation)
Total comprehensive income
3,400,822 14,565,637
Net income
Remeasurement loss related to defined benefit plan
-
-
-
-
-
-
-
210,516
-
-
-
309,460
(1,013)
-
-
3,611,338 14,874,084
-
-
997,544
-
997,544
-
-
17,966,459
-
(631)
-
-
-
-
(631)
628,293
-
-
-
-
(4,363)
623,930
628,293
(631)
519,976
(1,013)
997,544
(4,363)
20,106,265
Transactions with owners
Comprehensive stock exchange (Note 1)
New stocks issue cost
Issuance of hybrid securities
Dividends to hybrid securities
December 31, 2019
January 01, 2020
Total comprehensive income
3,611,338 14,874,084
997,544
(631)
623,930
20,106,265
Net income
Net loss on valuation of equity securities at FVTOCI
Remeasurement loss related to defined benefit plan
-
-
-
-
-
-
-
-
-
-
(280)
(607)
595,318
-
-
595,318
(280)
(607)
Transactions with owners
Dividends to common stocks
Issuance of hybrid securities
Dividends to hybrid securities
December 31, 2020
-
897,778
-
3,611,338 14,874,084 1,895,322
-
-
-
-
-
-
-
-
-
(1,518)
(505,587)
-
(48,915)
664,746
(505,587)
897,778
(48,915)
21,043,972
The accompanying notes are part of this financial statements.
WOORI FINANCIAL GROUP INC.
SEPARATE STATEMENTS OF CASH FLOWS
WOORI FINANCIAL GROUP INC.
SEPARATE STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2020
AND FOR THE PERIOD FROM JANUARY 11, 2019 (DATE OF INCORPORATION)
TO DECEMBER 31, 2019
FOR THE YEAR ENDED DECEMBER 31, 2020 AND FOR THE PERIOD FROM JANUARY 11, 2019 (DATE OF INCORPORATION) TO
DECEMBER 31, 2019
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
(Korean Won in millions)
Cash flows from operating activities:
Net income
Adjustments to net income:
Income tax expense(income)
Interest income
Interest expense
Dividend income
Adjustments for profit/loss items not involving cash flows:
Provision(Reversal) of impairment losses due to credit loss
Loss(Gain) on valuation of financial instruments at FVTPL
Retirement benefit
Depreciation and amortization
Changes in operating assets and liabilities:
Loans and other financial assets at amortized cost
Net defined benefit liability
Other financial liabilities
Other liabilities
Interest income received
Interest expense paid
Dividends received
Income tax paid
Net cash provided by operating activities
Cash flows from investing activities:
Net decrease(increase) on other investment assets
Acquisition of investments in subsidiaries
Acquisition of financial assets at FVTOCI
Acquisition of premises and equipment
Acquisition of intangible assets
Increase on guarantee deposits for leases
(Continued)
595,318
(781)
(10,082)
23,035
(680,375)
(668,203)
(116)
920
3,499
5,449
9,752
(188)
(11,329)
7,213
(3,571)
(7,875)
13,080
(22,559)
680,375
(397)
670,499
599,491
730,000
(1,687,371)
(150,000)
(3,074)
(3,051)
(1,118)
(1,114,614)
628,293
394
(7,741)
7,701
(676,000)
(675,646)
263
(9,434)
4,899
4,098
(174)
(1,365)
(1,687)
7,055
4,142
8,145
4,082
(6,097)
676,000
-
673,985
634,603
(1,130,000)
(1,370,785)
-
(6,722)
(4,630)
(955)
(2,513,092)
128
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
WOORI FINANCIAL GROUP INC.
SEPARATE STATEMENTS OF CASH FLOWS
WOORI FINANCIAL GROUP INC.
SEPARATE STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2020
AND FOR THE PERIOD FROM JANUARY 11, 2019 (DATE OF INCORPORATION)
TO DECEMBER 31, 2019 (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2020 AND FOR THE PERIOD FROM JANUARY 11, 2019 (DATE OF INCORPORATION) TO
DECEMBER 31, 2019 (CONTINUED)
Cash flows from financing activities:
Issuance of debentures
Issuance of hybrid securities
Redemption of lease liabilities
New stock issuance cost
Dividends paid to hybrid securities
Dividends paid
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning of the period
Cash and cash equivalents, end of the period (Note 5)
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
(Korean Won in millions)
199,556
897,778
(2,203)
-
(48,915)
(505,587)
540,629
25,506
43,670
69,176
947,604
997,544
(1,289)
(17,337)
(4,363)
-
1,922,159
43,670
-
43,670
The accompanying notes are part of this financial statements.
WOORI FINANCIAL GROUP INC.
WOORI FINANCIAL GROUP INC.
NOTES TO SEPARATE FINANCIAL STATEMENTS
NOTES TO SEPARATE FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2020 AND 2019
AS OF DECEMBER 31, 2020 AND 2019
1. GENERAL
(1) Summary of the parent company
Woori Financial Group, Inc. (hereinafter referred to the “Company”) is primarily aimed at controlling
subsidiaries that operate in the financial industry or those that are closely related to the financial industry through
the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act
through the comprehensive transfer with shareholders of Woori Bank, Woori FIS Co., Ltd., Woori Finance
Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services Co., Ltd. and Woori
Private Equity Asset Management Co. Ltd. The headquarters of the Company is located at 51, Sogong-ro, Jung-
gu, Seoul, Korea, and the capital is 3,611,338 million won as of December 31, 2020 while the Korea Deposit
Insurance Corp. (“KDIC”), the Company’s largest shareholder, owns 124,604,797 shares (17.25%) of the
Company’s stocks issued. The Company’s stocks were listed on the Korea Exchange on February 13, 2019, and
its American Depository Shares (“ADS”) are also being traded as the underlying common stock on the New
York Stock Exchange since the same date.
The details of stock transfer from the Company and subsidiaries as of incorporation are as follows (Unit:
Number of shares):
Stock transfer company
Woori Bank
Woori FIS Co., Ltd.
Woori Finance Research Institute Co., Ltd.
Woori Credit Information Co., Ltd.
Woori Fund Service Co., Ltd.
Woori Private Equity Asset Management Co., Ltd.
Total number of
issued shares
Exchange ratio
per share
676,000,000
4,900,000
600,000
1,008,000
2,000,000
6,000,000
1.0000000
0.2999708
0.1888165
1.1037292
0.4709031
0.0877992
Number of Parent
company’s stocks
676,000,000
1,469,857
113,289
1,112,559
941,806
526,795
As of August 1, 2019, the Company acquired a 73% interest in Woori Asset Management Co. (Formerly
Tongyang Asset Management Corp.). The remaining payment was completed in August, 2019 after the request
for the change of major shareholder was approved by the Financial Service Commission in July, 2019 and the
Company gained 100% control of Woori Global Asset Management Co., Ltd. (formerly ABL Global Asset
Management Co., Ltd), and added it as a consolidated subsidiary.
The Company paid 598,391 million won in cash and 42,103,377 new shares of the parent company to acquire
100% interest of Woori Card Co., Ltd. from its subsidiary Woori Bank on September 10, 2019. On the same
date, the Company also acquired 59.8% interest of Woori Investment Bank Co., Ltd. from Woori Bank with
392,795 million won in cash.
As of December 30, 2019, the Company acquired 67.2% interests (excluding treasury stock, 51.0% when
including treasury stock) in Woori Asset Trust Co. (formerly Kukje Asset Trust Co.)
As of December 10, 2020, the Company acquired 76.8% interests (excluding treasury stock, 74% when
including treasury stock) in Woori Financial Capital Co., Ltd. (formerly Aju Capital Co., Ltd.).
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
(1) Basis of presentation
The Company’s separate financial statements are prepared in accordance with Korean International Financial
Reporting Standards (“K-IFRS”). Significant accounting policies applied in the preparation of the financial
statements are described below.
The Company is preparing its financial statements in accordance with the K-IFRS, and the separate financial
statements are prepared in accordance with K-IFRS 1027 “Separate Financial Statements”. The financial
statements of the parent, associate or joint venture represent the investment assets in a manner that is based on
direct equity investments, not based on the reported performance and net assets of the investee.
The financial statements are prepared at the end of each reporting period on the historical cost basis, except for
certain non-current assets and financial assets that are either revalued or measured in fair value. Historical cost is
generally measured at the fair value of consideration given to acquire assets.
The financial statements of the Company were approved with adjustments as of March 5, 2021 after the initial
approval for the issuance as of February 5, 2021, and are planned to be finalized at the shareholder’s meeting on
March 26, 2021.
1) The new standards and interpretations introduced from the current term and the resulting changes in
accounting policies are as follows:
1.1 Amendments to K-IFRS 1103 Business Combination – Definition of a Business
To consider the integration of the required activities and assets as a business, the amended definition of a
business requires an acquisition to include an input and a substantive process that together significantly
contribute to the ability to create outputs and excludes economic benefits from the lower costs. An entity
can apply a concentration test, an optional test, where substantially all of the fair value of gross assets
acquired is concentrated in a single asset or a group of similar assets, the assets acquired would not
represent a business. The amendment does not have a significant impact on the financial statements.
1.2 Amendments to K-IFRS 1001 Presentation of Financial Statements and K-IFRS 1008 Accounting
policies, changes in accounting estimates and errors – Definition of Material
The amendments clarify the explanation of the definition of material and amended K-IFRS 1001 and K-
IFRS 1008 in accordance with the clarified definitions. Materiality is assessed by reference to omission or
misstatement of material information as well as effects of immaterial information, and to the nature of the
users when determining the information to be disclosed by the Company. The amendment does not have a
significant impact on the financial statements.
1.3 Amendments to K-IFRS 1116 Lease – Practical expedient for COVID-19-Related Rent Exemption,
Concessions, Suspension
As a practical expedient, a lessee may elect not to assess whether a rent concession occurring as a direct
consequence of the COVID-19 pandemic is a lease modification. A lessee that makes this election shall
account for any change in lease payments resulting from the rent concession the same way it would account
for the change applying this Standard if the change were not a lease modification.
With implementation of K-IFRS 1116 Lease, the Company has changed accounting policy. The Company
has adopted K-IFRS 1116 retrospectively, as permitted under the specific transitional provisions in the
standard. There was no cumulative impact on the beginning balance of retained earnings as at January 1,
2020 by retrospectively applying this standard, and the Company did not restate comparatives for the 2019
reporting period.
2) The details of K-IFRS that have been issued and published as of the date of issue approval of the
financial statements but have not yet reached the effective date, and which the Company has not
applied at an earlier date are as follows:
2.1 Amendments to K-IFRS 1103 'Business Combinations' - Citation of Conceptual Framework
Although the definition of assets and liabilities to be recognised was amended to refer to the revised
conceptual framework for financial reporting, it added exceptions to apply the IFRS for liabilities and
contingent liabilities within the scope of IAS 1037 'Provisions, Contingent Liabilities and Contingent
Assets' and IFRS 2121 'Levies' and clarified that contingent assets are not recognised at acquisition date.
This amendment will be applied for annual periods beginning on or after January 1, 2022, and early
application is permitted. We expect that the amendments to the Standard will have no significant impact on
financial statements.
2.2 Amendments to IAS 1037 'Provisions, Contingent Liabilities and Contingent Assets' - Loss-bearing
When identifying a loss-bearing contract, it was clarified that the scope of the contract's implementation
costs is the allocation of incremental costs for contract execution and other costs directly related to contract
performance. This amendment will be applied for the fiscal year beginning on or after January 1, 2022, and
early application is permitted. It is expected that the amendments to the Standard will have no significant
impact on financial statements.
2.3 Amendments to Korean IFRS 1016 Property, plant and equipment – Proceeds before intended use
The amendments prohibit an entity from deducting from the cost of an item of property, plant and
equipment any proceeds from selling items produced while the entity is preparing the asset for its intended
use. Instead, the entity will recognize the proceeds from selling such items, and the costs of producing those
items, in profit or loss. The amendments should be applied for annual periods beginning on or after January
1, 2022, and earlier application is permitted. The Company does not expect that these amendments have a
significant impact on the financial statements.
2.4 Annual Improvements to K-IFRS 2018-2020
K-IFRS Annual Improvements 2018-2020 apply for annual periods beginning on or after January 1,2022,
and early application is permitted. We expect that the amendments to the Standard will have no significant
impact on financial statements.
- K-IFRS 1101 'First Adoption of IFRS': Subsidiaries of first-time adopters
- K-IFRS 1109 'Financial Instruments': 10% test-related fees for the purpose of derecognising financial
liabilities
- K-IFRS 1116 'Leases': Lease Incentives
- K-IFRS 1041 'Agriculture' : Measuring fair value
2.5 Amendments to Korean IFRS 1001 Presentation of Financial Statements – Classification of Liabilities
as Current or Non-current
The amendments clarify that liabilities are classified as either current or non-current, depending on the
substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood
that an entity will exercise right to defer settlement of the liability or the expectations of management. Also,
the settlement of liability include the transfer of the entity's own equity instruments, however, it would be
excluded if an option to settle them by the entity's own equity instruments if compound financial
instruments is met the definition of equity instruments and recognized separately from the liability. The
amendments should be applied for annual periods beginning on or after January 1, 2023, and earlier
application is permitted. The Company does not expect that these amendments have a significant impact on
the financial statements.
The above enacted or amended standards will not have a significant impact on the Company.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(2)
Investments in subsidiaries and associates in separate financial statements
(5) Cash and cash equivalents
The Company selects and processes the cost method in accordance with K-IFRS 1027 for investments in
subsidiaries, associates and jointly controlled entities, except for those classified as held for sale in accordance
with K-IFRS 1105 ‘Non-current Assets Held for Sale and Discontinued Operations’. Dividends received from
subsidiaries, associates and jointly controlled entities are recognized in profit or loss as dividend income when
the right to receive dividends is established.
(3) Revenue recognition
K-IFRS 1115 requires the recognition of revenues based on transaction price allocated to the performance
obligation when or as the Company performs the obligation to the customer. Revenues other than those from
contracts with customers, such as interest revenue, are measured through the effective interest rate method.
1) Revenues from contracts with customers
The Company recognizes revenue when the Company satisfies a performance obligation by
transferring a promised good or service to a customer. When a performance obligation is satisfied, the
Company shall recognize as a revenue the amount of the transaction price that is allocated to that
performance obligation. The transaction price is the amount of consideration to which the Company
expects to be entitled in exchange for transferring promised goods or services to a customer, excluding
amounts collected on behalf of third parties. The revenue recognized by these standards is fees and
commissions income.
2) Revenues from sources other than contracts with customers
Interest income on financial assets measured at FVTOCI and financial assets at amortized costs is
measured using the effective interest method.
The effective interest method is a method of calculating the amortized cost of debt securities (or group
of financial assets) and of allocating the interest income over the expected life of the asset. The
effective interest rate is the rate that exactly discounts estimated future cash flows to the instrument's
initial total carrying amount over the expected period, or shorter if appropriate. Future cash flows
include commissions and cost of reward points (limited to the primary component of effective interest
rate) and other premiums or discounts that are paid or received between the contractual parties, and
future cash flows exclude expected credit loss when calculating the effective interest rate. All
contractual terms of a financial instrument are considered when estimating future cash flows.
For purchased or originated credit-impaired financial assets, interest revenue is recognized by applying
the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial
recognition. Even if the financial asset is no longer impaired in the subsequent periods due to credit
improvement, the basis of interest revenue calculation is not changed from amortized cost to
unamortized cost of the financial assets.
3) Dividend income
Dividend income is recognized when the right to receive dividends as a shareholder is confirmed.
Dividend income is recognized as an appropriate item of profit or loss in the statement of
comprehensive income according to the classification of financial instruments.
(4) Accounting for foreign currencies
The Company’s separate financial statements are presented in Korean Won, which is the functional currency of
the Company. At the end of each reporting period, monetary assets and liabilities denominated in foreign
currencies are translated to the functional currency at its prevailing exchange rates at the date.
The Company is classifying cash on hand, demand deposits, interest-earning deposits with original maturities of
up to three months on acquisition date, and highly liquid investments that are readily convertible to known
amounts of cash and subject to an insignificant risk of changes in value as cash and cash equivalents.
(6) Financial assets and financial liabilities
1) Financial assets
A regular way purchase or sale of financial assets is recognized or derecognized on the trade or
settlement date. A regular way purchase or sale is a purchase or sale of a financial asset under a
contract whose term requires delivery of the asset within the time frame established generally by
regulation or convention in the marketplace concerned.
On initial recognition, financial assets are classified into financial assets at FVTPL, financial assets at
FVTOCI, and financial assets at amortized cost.
a) Business model
The Company evaluates the way business is being managed, and the purpose of the business model for
managing a financial asset best reflects the way information is provided to the management at its portfolio
level. Such information considers the following:
- The accounting policies and purpose specified for the portfolio, and the actual operation of such
policies. This includes strategy of the management focusing on the receipt of contractual interest
revenue, maintaining a certain level of interest income, matching the duration of financial assets and
the duration of corresponding liabilities to obtain the asset, and outflow or realization of expected cash
flows from disposal of assets.
- The way the performance of a financial asset held under the business model is evaluated, and the way
such evaluation is being reported to the management
- The risk affecting the performance of the business model (and financial assets held under the business
model), and the way such risk is being managed
- The compensation plan for the management (e.g. whether the management is being compensated based
-
on the fair value of assets or based on contractual cash flows received)
Frequency, amount, timing and reason for sale of financial assets in the past and forecast of future sale
activities
b) Contractual cash flows
The principal is defined to be the fair value of a financial asset at initial recognition. Interest is not only
composed of consideration for the time value of money, consideration for the credit risk related to
remaining principal at a certain period of time, and consideration for other cost (e.g. liquidity risk and cost
of operation) and fundamental risk associated with lending, but also profit.
When evaluating whether contractual cash flows are solely payments of principal and interests, the
Company considers the contractual terms of the financial instrument. When a financial asset contains
contractual conditions that modify the timing and amount of contractual cash flows, it is required to
determine whether contractual cash flows that arise during the remaining life of the financial instrument
due to such contractual condition are solely payments of principal and interest. The Company considers the
following elements when evaluating the above:
- Conditions that lead to modification of timing or amount of cash flows
- Contractual terms that adjust contractual nominal interest, including floating rate features
- Early payment features and maturity extension features
- Contractual terms that limit the Company’s claim on cash flows arising from certain assets (e.g. non-
recourse feature)
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
1.1 Financial assets at FVTPL
1.3 Financial assets at amortized cost
The Company is classifying those financial assets that are not classified as either financial assets at
amortized cost or financial assets at FVTOCI, and those designated to be measured at FVTPL, as financial
assets at FVTPL. Financial assets at FVTPL are measured at fair value, and related profit or loss is
recognized in net income. Transaction costs related to acquisition at initial recognition is recognized in net
income immediately upon its occurrence.
It is possible to designate a financial asset as financial asset at FVTPL if at initial recognition: (a) it is
possible to remove or significantly reduce recognition or measurement mismatch that may otherwise have
occurred if not for its designation as financial asset at FVTPL; (b) the financial asset forms part of the
Company’s financial instrument group (A group composed of a combination of financial asset or liability),
is measured at fair value and is being evaluated for its performance, and such information is provided
internally; and (c) the financial asset is part of a contract that contains one or more of embedded
derivatives, and is a hybrid contract in which designation as financial asset at FVTPL is allowed under K-
IFRS 1109 ‘Financial Instruments’. However, the designation is irrevocable.
1.2 Financial assets at FVTOCI
When financial assets are held under a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets, and when contractual cash flows from such financial
assets are solely payments of principal and interest, the financial assets are classified as financial assets at
FVTOCI. Also, for investments in equity instruments that are not held for short-term trade, an irrevocable
election is available at initial recognition to present subsequent changes in fair value as other
comprehensive income.
At initial recognition, financial assets at FVTOCI is measured at its fair value plus any direct transaction
cost and is subsequently measured in fair value. However, for equity instruments that do not have a
quotation in an active market and in which fair value cannot be measured reliably, they are measured at
cost. The changes in fair value except for profit or loss items such as impairment losses (reversals), interest
revenue calculated by using effective interest method, and foreign exchange gain or loss, and related
income tax effects are recognized as other comprehensive income until the asset’s disposal. Upon
derecognition, the accumulated other comprehensive income is reclassified from equity to net income for
FVTOCI (debt instrument), and reclassified within the equity for FVTOCI (equity instruments)
When financial assets are held under a business model whose objective is to hold financial assets in order to
collect contractual cash flows, and when contractual cash flows from such financial assets are solely
payments of principal and interest, the financial assets are classified as financial assets at amortized cost. At
initial recognition, financial assets at amortized cost are recognized at fair value plus any direct transaction
cost. Financial assets at amortized cost is presented at amortized cost using effective interest method, less
any loss allowance.
2) Financial liabilities
At initial recognition, financial liabilities are classified into either financial liabilities at FVTPL or
financial liabilities at amortized cost.
Financial liabilities are usually classified as financial liabilities at FVTPL when they are acquired with
a purpose to repurchase them within a short period of time, when they are part of a certain financial
instrument portfolio that is actually and recently being managed with a purpose of short-term profit and
joint management by the Company at initial recognition, and when they are derivatives that do not
qualify as hedging instruments. Financial liabilities at FVTPL are measured at fair value plus direct
transaction cost at initial recognition and are subsequently measured at fair value. Profit or loss arising
from financial liabilities at FVTPL is recognized in net income when occurred.
It is possible to designate a financial liability as financial liability at FVTPL if at initial recognition: (a)
it is possible to remove or significantly reduce recognition or measurement mismatch that may
otherwise have occurred if not for its designation as financial liability at FVTPL; (b) the financial
liability forms part of the Company’s financial instrument group (a group composed of a combination
of financial asset or liability) according to the Company’s documented risk management or investment
strategy, is measured at fair value and is being evaluated for its performance, and such information is
provided internally; and (c) the financial liability is part of a contract that contains one or more of
embedded derivatives, and is a hybrid contract in which designation as financial liability at FVTPL is
allowed under K-IFRS 1109 ‘Financial Instruments’.
Financial liabilities designated as at FVTPL are initially recognized at fair value, with any direct
transaction cost recognized in profit or loss, and are subsequently measured at fair value. Any profit or
loss from financial liabilities at FVTPL are recognized in profit or loss.
Financial liabilities not classified as financial liabilities at FVTPL are measured at amortized cost. The
Company is classifying liabilities such as borrowings etc. as financial liabilities at amortized cost.
3) Reclassification
Financial assets are not reclassified after initial recognition unless the Company modifies the business
model used to manage financial assets. When the Company modifies the business model used to
manage financial assets, all affected financial assets are reclassified on the first day of the first
reporting period after the modification.
4) Derecognition
Financial assets are derecognized when contractual rights to cash flows from the financial assets are
expired, or when substantially all of risk and reward for holding financial assets is transferred to
another entity as a result of a sale of financial assets. If the Company does not have and does not
transfer substantially all of the risk and reward of holding financial assets with control of the
transferred financial assets retained, the Company recognizes financial assets to the extent of its
continuing involvement. If the Company holds substantially all the risk and reward of holding a
financial asset, it continues to recognize that asset and proceeds are accounted for as collateralized
borrowings.
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When a financial asset is fully derecognized, the difference between the book value and the sum of
proceeds and accumulated other comprehensive income is recognized as profit or loss in case of
FVTOCI (debt instruments), and as retained earnings for FVTOCI (equity instruments).
In cases when a financial asset is not fully derecognized, the Company allocates the book value into
amounts retained in the books and removed from the books, based on the relative fair value of each
portion at the date of sale, and based on the degree of continuing involvement. For the derecognized
portion of the financial assets, the difference between its book value and the sum of proceeds and the
portion of accumulated other comprehensive income attributable to that portion will be recognized in
profit or loss in case of debt instruments and recognized in retained earnings in case of equity
instruments. The accumulated other comprehensive income is distributed to the portion of book value
retained in the books, and to the portion of book value removed from the books.
The Company derecognizes financial liabilities only when, the Company’s obligations are discharged,
cancelled or have expired. The difference between the carrying amount of the financial liability
derecognized and the consideration paid and payable is recognized in profit or loss.
When the Company exchanges with the existing lender one debt instrument into another one with the
substantially different terms, such exchange is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability. Similarly, the Company accounts for
substantial modification of terms of an existing liability or part of it as an extinguishment of the
original financial liability and the recognition of a new liability. It is assumed that the terms are
substantially different if the discounted present value of the cash flows under the new terms, including
any fees paid net of any fees received and discounted using the original effective rate is at least 10
percent different from the discounted present value of the remaining cash flows of the original financial
liability.
5) Fair value of financial instruments
Financial assets at FVTPL and financial assets at FVTOCI are measured and presented in financial
statements at their fair values, and all derivatives are also subject to fair value measurement.
Fair value is defined as the price that would be received to exchange an asset or paid to transfer a
liability in a recent transaction between independent parties that are reasonable and willing. Fair value
is the transaction price of identical financial assets or financial liabilities generated in an active market.
An active market is a market where trade volume is sufficient and objective price information is
available due to the fact that bid and ask price differences are small.
When trade volume of a financial instrument is low, when transaction prices within the market show
large differences among them, or when it cannot be concluded that a financial instrument is being
traded within an active market due to disclosures being extremely limited, fair value is measured using
valuation techniques based on alternative market information or using internal valuation techniques
based on general and observable information obtained from objective sources. Market information
includes maturity and characteristics, duration, similar yield curve, and variability measurement of
financial instruments of similar nature. Fair value amount contains unique assumptions on each entity
(the Company concluded that it is using assumptions applied in valuing financial instruments in the
market, or risk-adjusted assumptions in case marketability does not exist).
The market approach and income approach, which are valuation techniques used to estimate the fair
value of financial instruments, both require significant judgment. Market approach measures fair value
using either a recent transaction price that includes the financial instrument, or observable information
on comparable firm or assets. Income approach measures fair value through discounting future cash
flows with a discount rate reflecting market expectations, and revenue, operating income, depreciation,
capital expenditures, income tax, working capital and estimated residual value of financial investments
are being considered when deriving future cash flows. Valuation techniques such as the above include
estimates based on the financial instruments’ complexity and usefulness of observable information in
the market.
6) Expected credit losses on financial assets
The Company recognizes loss allowance on expected credit losses for the following assets:
-
Financial assets at amortized cost
- Debt instruments measured at FVTOCI
- Contract assets as defined by K-IFRS 1115
Expected credit losses are weighted-average value of a range of possible results, considering the time value
of money, and are measured by incorporating information on past events, current conditions and forecasts
of future economic conditions that are available without undue cost or effort at the reporting date.
The methods to measure expected credit losses are classified into following three categories in accordance
with K-IFRS:
- General approach: Financial assets that does not belong to below two models and unused loan
-
commitments
Simplified approach: When financial assets are either trade receivables, contract assets or lease
receivables
- Credit impairment model: Purchased or originated credit-impaired financial assets
The measurement of loss allowance under general approach is differentiated depending on whether the
credit risk has increased significantly after initial recognition. That is, loss allowance is measured based on
12-month expected credit loss when the credit risk has not increased significantly after initial recognition,
while loss allowance is measured at lifetime expected credit loss when credit risk has increased
significantly. Lifetime is the expected remaining life of the financial instrument up to the maturity date of
the contract.
The measurement of loss allowance under simplified approach is always based on lifetime expected credit
loss, and loss allowance under credit impairment model is measured as the cumulative change in lifetime
expected credit loss since initial recognition.
a) Measurement of expected credit losses on financial asset at amortized cost
The expected credit losses on financial assets at amortized cost is measured by the difference between the
contractual cash flows during the period and the present value of expected cash flows. Expected cash inflows
are computed for individually significant financial assets in order to calculate expected credit losses.
When financial assets that are not individually significant, they are included in a group of financial assets
with similar credit risk characteristics and expected credit losses of the Company are calculated collectively.
Expected credit losses are deducted through loss allowance account, and when the financial asset is
determined to be uncollectible, the loss allowance is written off from the books along with the related
financial asset.
b) Measurement of expected credit losses on financial asset at FVTOCI
The measurement method of expected credit loss is identical to financial asset at amortized cost, but changes
in the allowance is recognized in other comprehensive income. When financial assets at FVTOCI is disposed
or repaid, the related allowance is reclassified from accumulated other comprehensive income to net income.
(7) Offsetting financial instruments
Financial assets and liabilities are presented as a net amount in the statements of financial position when the
Company has an enforceable legal right and an intention to settle on a net basis or to realize an asset and settle
the liability simultaneously.
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(8) Premises and equipment
(11) Derivative instruments
Premises and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
The cost of an item of premises and equipment is expenditures directly attributable to their purchase or
construction, which includes any cost directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management. It also includes the initial
estimate of costs of dismantling and removing the item and restoring the site on which it is located.
Subsequent costs are recognized in the carrying amount of an asset or as a separate asset (if appropriate) if it is
probable that future economic benefit associated with the assets will flow into the Company and the cost of an
asset can be measured reliably. Routine maintenance and repairs are expensed as incurred.
While land is not depreciated, for all other premises and equipment, depreciation is charged to net income on a
straight-line basis by applying the following estimated economic useful lives on the amount of cost or revalued
amount less residual value.
Leasehold Improvement
Equipment and Vehicles
Useful life
5 years
5 years
The Company reassesses the depreciation method, the estimated useful lives and residual values of premises and
equipment at the end of each reporting period. If changes in the estimates are deemed appropriate, the changes
are accounted for as a change in an accounting estimate. When there is an indicator of impairment and the
carrying amount of a premises and equipment item exceeds the estimated recoverable amount, the carrying
amount of such asset is reduced to the recoverable amount.
(9)
Intangible assets and goodwill
The Company is recognizing intangible assets measured at the manufacturing cost or acquisition cost plus
additional incidental expenses less accumulated amortization and accumulated impairment losses. The
Company’s intangible asset are amortized over the following economic lives using the straight-line method. The
estimated useful life and amortization method are reviewed at the end of each reporting period. The estimated
useful life and amortization method of intangible assets with a finite useful life are reviewed at the end of each
reporting period. The estimated useful life and amortization method of intangible assets with an indefinite useful
life are reviewed at the end of each reporting period to ensure that the asset has an indefinite useful life. If
changes in the estimates are deemed appropriate, the changes are accounted for as a change in an accounting
estimate.
Software
Development cost
Useful life
1~5 years
5 years
In addition, when an indicator that intangible assets are impaired is noted, and the carrying amount of the asset
exceeds the estimated recoverable amount of the asset, the carrying amount of the asset is reduced to its
recoverable amount immediately.
(10) Impairment of non-monetary assets
Intangible assets with indefinite useful lives or intangible assets that are not yet available for use are tested for
impairment annually, regardless of whether or not there is any indication of impairment. All other assets are
tested for impairment by estimating the recoverable amount when there is an objective indication that the
carrying amount may not be recoverable. Recoverable amount is the higher of value in use or net fair value, less
costs to sell. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying
amount of the asset is reduced to its recoverable amount and such impairment loss is recognized immediately in
net income.
Derivative instruments are classified as forwards, futures, options, and swaps depending on the types of
transactions, and are classified as either trading or hedging at the point of transaction based on its purpose.
Derivatives are initially recognized at the fair value of the contract date and are subsequently measured at the fair
value of the end of each reporting period. The resulting gain or loss is recognized in net income immediately
unless the derivative is designated and effective as a hedging instrument. If derivatives have been designated as
hedging instruments and it is effective, the recognition point of gain or loss depends on the characteristics of the
hedging relationship.
Derivatives with a positive fair value(+) are recognized as financial assets, and derivatives with a negative fair
value(-) are recognized as financial liabilities. Derivatives in financial statements are not offset unless they have
a legally enforceable right to set-off or intend to set-off.
(12) Provisions
The Company recognizes provision if (a) it has present or contractual obligations as a result of the past event, (b)
it is probable that an outflow of resources will be required to settle the obligation and (c) the amount of the
obligation is reliably estimated. Provision is not recognized for the future operating losses.
The Company recognizes the expenses incurred in recovering the leased asset to its original state, under the
terms of the lease, as a provision at the commencement date of lease or at a specific period of time when the
asset is liable as a result of its use. The provision is measured as the best estimate of the expenditure required to
recover the asset and is regularly reviewed and adapted to the new circumstances.
Where there are a number of similar obligations, the probability that an outflow will be required in settlement is
determined by considering the obligations as a whole. Although the likelihood of outflow for any one item may
be small, if it is probable that some outflow of resources will be needed to settle the obligations as a whole, a
provision is recognized.
The balance of provisions is reviewed at the end of each reporting period and adjusted to reflect the best estimate
as of the end of the reporting period.
(13) Equity instruments issued by the Company
1) Capital and compound financial instruments
The Company classifies a financial instrument that it issues as a financial liability or an equity
instrument in accordance with the substance of the contractual arrangement. A financial liability is a
contractual obligation to deliver cash or another financial asset to another entity. An equity instrument
is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. The compound financial instruments issued by the Company are financial instruments which
are neither a financial liability nor an equity instrument as they were designed to contain both equity
and debt elements.
If the Company reacquires its own equity instruments, the consideration paid including the direct
transaction costs (net of income tax expense) are presented as a deduction from total equity until such
instruments are retired or reissued. When these instruments are reissued, the consideration received (net
of direct transaction costs) is included in the shareholder’s equity.
2) Hybrid securities
In case of hybrid securities that have the unconditional right to avoid contractual obligations, such as to
deliver cash or other financial assets related to financial instruments, they are classifies as equity
instruments and presented as part of equity.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(14) Employee benefits and pensions
The Company recognizes the undiscounted amount of short-term employee benefits expected to be paid in
exchange for the services rendered by the employees. Also, the Company recognizes expenses and liabilities in
the case of accumulating compensated absences when the employees render services that entitle their right to
future compensated absences. Similarly, the Company recognizes expenses and liabilities for customary profit
distribution or bonuses when the employees render services, even though the Company does not have legal
obligation to do so because it can be construed as constructive obligation.
The Company is operating defined benefit plans. For defined benefit plans, the defined benefit liability is
calculated through an actuarial assessment using the projected unit credit method every end of the reporting
period, conducted by professional actuaries. Remeasurement, comprising actuarial gains and losses, the return on
plan assets (excluding interest), and the effect of the changes to the asset ceiling (if applicable) is reflected
immediately in the separate statement of financial position with a charge or credit recognized in other
comprehensive income in the period in which they occur.
Remeasurement recognized in the statement of comprehensive income is not reclassified to profit or loss in the
subsequent periods. Past service cost is recognized in profit or loss in the period of a plan amendment. Net
interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit
liability or asset. Defined benefit costs are composed of service cost (including current service cost and past
service cost, as well as gains and losses on curtailments and settlements), net interest expense (income) and
remeasurement.
The Company presents the service cost and net interest expense (income) components in profit or loss, and the
remeasurement component in other comprehensive income. Curtailment gains and losses are accounted for as
past service costs.
The retirement benefit obligation recognized in the separate statement of financial position represents the actual
deficit or surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is
recognized as an asset limited to the present value of any economic benefits available in the form of refunds
from the plans or reductions in future contributions to the plans.
Liabilities for termination benefits are recognized at the earlier of either 1) the date when the Company is no
longer able to cancel its proposal for termination benefits or 2) the date when the Company has recognized the
cost of restructuring that accompanies the payment of termination benefits.
(15) Income taxes
Income tax expense is composed of current tax and deferred tax. That is, income tax expense is composed of
taxes payable or refundable during the period and deferred taxes calculated by applying asset-liability method to
taxable and deductible temporary differences arising from operating loss and tax credit carryforwards.
Temporary differences are the differences between the carrying values of assets and liabilities for financial
reporting purposes and their tax bases. Deferred income tax benefit or expense is recognized for the change in
deferred tax assets or liabilities. Deferred tax assets and liabilities are measured as of the reporting date using the
enacted or substantively enacted tax rates expected to apply in the period in which the liability is settled or asset
realized. Deferred tax assets, including the carryforwards of unused tax losses, are recognized to the extent it is
probable that the deferred tax assets will be realized.
The Company, as a consolidation group for its wholly-owned subsidiaries applies consolidated tax return
approach, in which the Company and its subsidiaries are consolidated into a single tax base and tax amount. The
Company determined whether temporary differences are realizable by considering the Company and each
subsidiary’s future taxable income. For the changes in deferred income tax asset (liability), the Company
recognized income tax expense (benefit), excluding the amounts that are directly adjusted from equity. Also, as
the Company became the consolidation entity for tax filings and tax returns, it recognized the total amount of
income tax payables as liabilities and individual tax amounts to be received from each of its wholly-owned
subsidiaries as receivables.
Deferred income tax assets and liabilities are offset if, and only if, the Company has a legally enforceable right to
offset current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to income
taxes levied by the same taxation authority or when the entity intends to settle current tax liabilities and assets on
a net basis with different taxable entities.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax assets or liabilities are not recognized if they arise from the initial recognition (other than in a
business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit.
Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized
in other comprehensive income or directly in equity or when it arises from business combination.
The tax uncertainty arises from the compensation claim filed by the Company, and refund litigation for the
amount of tax levied by the tax authority due to differences in tax law analysis. In response, the Company paid
taxes in accordance with K-IFRS 2123 due to the tax authority’s claim, but recognized as a corporate tax asset if
it is highly probable of a refund in the future. In addition, the Company appropriately estimates and reflects the
amount of corporate tax liabilities based on the analysis of corporate tax laws and the evaluation of many factors,
including past experiences.
(16) Earnings per share (“EPS”)
Basic EPS is a calculation of net income per each common stock. It is calculated by dividing net income
attributable to ordinary shareholders by the weighted-average number of common shares outstanding. Diluted
EPS is calculated by adjusting the earnings and number of shares for the effects of all dilutive potential common
shares.
(17) Share-based payments
For cash-settled share-based payment transactions that provide cash in return for the goods or services received,
the Company measures the goods or services received, and the corresponding liability at the fair value and
recognizes as employee benefit expenses and liabilities during the vesting period.
The fair value of the liability is remeasured at the end of each reporting period and the settlement date until the
liability is settled, and changes in fair value are recognized as employee benefits.
(18) Leases
1) The Company determines whether the contract is, or contains, a lease at the date of initial application.
A contract is or contains a lease if the right to control the use of an identified asset is transferred in
exchange for the consideration received for a period of time. In determining whether a contract
transfers control of the use of the identified asset, the Company uses the definition of lease in K-IFRS
1116.
2) Lessee
At the commencement date, the Company recognizes a right-of-use asset and a lease liability. The
right-of-use asset is initially measured at cost, which comprises the amount of the initial measurement
of the lease liability, lease payments made at or before the commencement date (less any lease
incentives received), initial direct costs, and an estimate of costs to be incurred by the lessee in
dismantling and removing the underlying asset, restoring the site on which it is located.
The right-of-use asset is subsequently depreciated on a straight-line basis from the commencement date
to the end of the lease term. However, if the lease transfers ownership of the underlying asset to the
lessee by the end of the lease term or if the cost of the right-of-use asset reflects that the lessee will
exercise a purchase option, the lessee depreciates the right-of-use asset same as a fixed asset from the
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
commencement date to the end of the useful life of the underlying asset. The right-of-use asset may be
reduced by an impairment of the underlying asset or adjusted by remeasurement of the lease liability.
operations in various forms both domestically and internationally. The Company will continue to evaluate future
prospects related to the duration of COVID-19's economic impact and the government's policies.
At the commencement date, a lease liability is measured at the present value of the lease payments that
are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease,
if the rate can be readily determined. If the rate cannot be readily determined, the Company’s
incremental borrowing rate can be used. Generally, the Company uses incremental borrowing rate as a
discount rate.
The Company makes adjustments to reflect the terms of the lease and the characteristics of the lease
asset in interest rates obtained from external financial information, and calculates the incremental
borrowing rate.
The lease payments included in the measurement of the lease liability comprise the following:
Fixed payments (including in-substance fixed payments)
-
- Variable lease payments that depend on an index (or a rate), initially measured using the index or
rate as at the commencement date
- Amounts expected to be payable by the lessee under residual value guarantees
- The exercise price of a purchase option if the lessee is reasonably certain to exercise that option,
lease payments of the extended period if the lessee is reasonably certain to exercise extension
option, and payments of penalties for terminating the lease, if the lease term reflects the lessee
exercising an option to terminate the lease
A lease liability is subsequently measured by increasing the carrying amount to reflect interest rate on
the lease liability and reducing the carrying amount to reflect the lease payments made. A lease liability
is remeasured when future lease payments change, depending on the changes in an index or a rate,
change in amounts expected to be payable due to residual value guarantees, assessment of whether the
Company is reasonably certain to exercise the purchase option and extension option, the Company is
not reasonably certain to exercise the termination options.
When lease liability is remeasured, the related right-of-use asset is adjusted and if the carrying amount
of the right-of-use asset decreases to zero, the remeasurement amount is recognized in profit or loss.
A Company’s judgment is used when determining the lease term for some contracts that contain
extension options. The assessment on whether the Company is reasonably certain to exercise the
extension option could affect the lease term, and therefore, the lease liability and the right-of-use asset
could be significantly affected.
The Company reevaluates the lease term when the option is exercised (or not exercised) or the
Company is liable to exercise (or not exercise) the option. Company will change its judgment only
when significant events occur that affect the lessee's control and the determination of the lease term, or
there is a significant change in the circumstances.
In the statement of financial position, the Company classified the right-of-use assets that do not meet
the definition of investment property as ‘premises and equipment’ and the lease liabilities as ‘other
financial liabilities.’
The Company has chosen a practical expedient that does not recognize the right-of-use asset and lease
liabilities for short-term leases with a lease term less than 12 months and leases for which the
underlying asset is of low value. The Company recognizes the lease payments associated with those
leases as an expense on a straight-line basis over the lease term.
3. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS
The significant accounting estimates and assumptions are continuously being evaluated based on numerous
factors including historical experiences and expectations of future events considered to be reasonably possible.
Actual results can differ from those estimates based on such definitions. The accounting estimates and
assumptions that contain significant risk of materially changing current book values of assets and liabilities in
the next accounting periods are as follows:
(1) Income taxes
The Company has recognized current and deferred taxes based on best estimates of expected future income tax
effect arising from the Company’s operations until the end of the current reporting period. However, actual tax
payment may not be identical to the related assets and/or liabilities already recognized, and these differences
may affect current taxes and deferred tax assets/liabilities at the time when income tax effects are finalized.
Deferred tax assets relating to tax losses carried forward and deductible temporary differences are recognized
only to the extent that it is probable that future taxable profit will be available against which the tax losses
carried forward and the deductible temporary differences can be utilized. In this case the Company’s evaluation
considers various factors such as estimated future taxable profit based on forecasted operating results, which are
based on historical financial performance. The Company is reviewing the book value of deferred tax assets every
end of the reporting period and in the event that the possibility of earning future taxable income changes, the
deferred tax assets are adjusted up to taxable income sufficient to use deductible temporary differences.
(2) Valuation of financial instruments
Financial assets at FVTPL and FVTOCI are recognized in the separate financial statements at fair value. All
derivatives are measured at fair value. Valuation techniques are required in order to determine fair values of
financial instruments where observable market prices do not exist. Financial instruments that are not actively
traded and have low price transparency will have less objective fair value and require broad judgment in
liquidity, concentration, uncertainty in market factors and assumption in price determination and other risks.
As described in Note 2, (6) 5), ‘Fair value of financial instruments’, when valuation techniques are used to
determine the fair value of a financial instrument, various general techniques are used, and various types of
assumptions and variables are incorporated during the process.
(3) Impairment of financial instruments
KIFRS 1109 requires entities to measure loss allowance equal to 12-month expected credit losses or lifetime
expected credit losses after classifying financial assets into one of the three stages, which depends on the degree
of increase in credit risk after their initial recognition.
Allowance for
expected credit
losses
Stage 1
Credit risk has not significantly
increased since initial recognition(*)
Expected 12-month credit losses:
Expected credit losses due to possible
defaults on financial instruments
within a 12-month period from the
end of reporting period.
Stage 2
Credit risk has significantly
increased since initial recognition
Stage 3
Credit has been
impaired
Expected lifetime credit losses:
Expected credit losses from all possible defaults
during the expected lifetime of the financial
instruments.
(*) Credit risk may be considered to not have been significantly increased when credit risk is low at the end of reporting
period.
The Company has estimated the allowance for credit losses based on reasonable and supportable information that
was available without undue cost or effort at the reporting date about past events, current conditions and
forecasts of future economic conditions.
The outbreak of COVID-19 in 2020 has had a significant impact on the global economy including Korea.
Financial and economic shocks may have negative impacts on the Company’s financial condition and results of
(4) Defined benefit plan
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
The Company operates a defined benefit pension plan. Defined benefit obligation is calculated at every end of
the reporting period by performing actuarial valuation, and estimation of assumptions such as discount rate,
expected wage growth rate and mortality rate is required to perform such actuarial valuation. The defined benefit
plan, due to its long-term nature, contains significant uncertainties in its estimates.
4. RISK MANAGEMENT
The Company is exposed to various risks that may arise from its operating activities and credit risk, market risk
and liquidity risk are the main types of risks. In order to manage such risks, the Risk Management Committee
analyzes, assesses, and establishes risk management standards, including policies, guidelines, management
systems and decision-making to ensure sound management of the Company.
The Risk Management Committee, Chief Risk Officer (“CRO”) and the Risk Management Department are
operated as risk management organizations. The board of directors operates the Risk Management Committee,
composed of nonexecutive directors for professional risk management. The Risk Management Committee
performs as the top decision-making body for risk management by establishing fundamental risk management
policies that are consistent with the Company’s management strategy and by determining the Company’s
acceptable level of risk.
CRO assists the Risk Management Committee and operates the Company Risk Management Council, which is
composed of the risk management managers of the subsidiaries, to periodically check and improve the external
environment and the Company’s risk burden. The Risk Management Department which is independently
structured, controls the risk management matter of the Company and reports key risks and assists decision-
making.
(1) Credit risk
Credit risk represents the possibility of financial losses incurred when the counterparty fails to fulfill its
contractual obligations. The goal of credit risk management is to maintain the Company’s credit risk exposure to
a permissible degree and to optimize its rate of return considering such credit risk.
1) Credit risk management
The Company measures expected loss on assets subject to credit risk management and uses it as a
management indicator.
2) Maximum exposure
The maximum exposure to credit risk is as follows (Unit: Korean Won in millions):
Loans and other financial assets
at amortized cost (*)
Banks
Corporates
Financial assets at FVTPL
Total
Sub-total
Derivative assets
(*) Cash and cash equivalents are not included.
a) Credit risk exposure by geographical areas
December 31, 2020
598,398
20,719
619,117
7,247
626,364
December 31, 2019
1,228,918
40,285
1,269,203
9,434
1,278,637
The following tables analyze credit risk exposure by geographical areas (Unit: Korean Won in millions):
Loans and other financial assets at amortized cost
146
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December 31, 2020
Korea
December 31, 2019
Korea
619,117
1,269,203
Financial assets at FVTPL
Total
b) Credit risk exposure by industries
December 31, 2020
Korea
December 31, 2019
Korea
7,247
626,364
9,434
1,278,637
The following tables analyze credit risk exposure by industries, which are finance and insurance, and others
in accordance with the Korea Standard Industrial Classification Code as of December 31, 2020 and
December 31, 2019 (Unit: Korean Won in millions):
Loans and other financial assets at amortized cost
Financial assets at FVPTL
Total
Loans and other financial assets at amortized cost
Financial assets at FVPTL
Total
3) Credit risk exposure
December 31, 2020
Finance and
insurance
617,024
7,247
624,271
Others
2,093
-
2,093
Total
619,117
7,247
626,364
December 31, 2019
Finance and
insurance
1,267,228
9,434
1,276,662
Others
1,975
-
1,975
Total
1,269,203
9,434
1,278,637
The maximum exposure to credit risk by asset quality, except for financial assets at FVTPL as of December
31, 2020 and December 31, 2019 is as follows (Unit: Korean Won in millions):
December 31, 2020
Stage 1
Stage 2
Above
appropriate
credit rating
(*1)
Less than a
limited
credit rating
(*3)
Above
appropriate
credit
rating (*2)
Less than a
limited credit
rating
(*3)
Stage 3
Total
Loss
allowance
Total, net
619,264
598,545
20,719
20,719
619,264
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
619,264
598,545
20,719
20,719
619,264
(147)
(147)
-
-
(147)
619,117
598,398
20,719
20,719
619,117
Financial assets
Loans and other financial
assets at amortized cost
Banks
Corporates
General business
Total
(*1) Credit grade of corporates are AAA ~ BBB.
(*2) Credit grade of corporates are A- ~ BBB.
(*3) Credit grade of corporates are BBB- ~ C.
Financial assets
Loans and other financial
assets at amortized cost
Banks
Corporates
General business
Total
December 31, 2019
Stage 1
Stage 2
Above
appropriate
credit rating
(*1)
Less than a
limited
credit rating
(*3)
Above
appropriate
credit
rating (*2)
Less than a
limited credit
rating
(*3)
Stage 3
Total
Loss
allowance
Total, net
1,269,466
1,229,181
40,285
40,285
1,269,466
-
-
-
-
-
-
-
-
-
-
- 26 -
-
-
-
-
-
-
-
-
-
-
1,269,466
1,229,181
40,285
40,285
1,269,466
(263)
(263)
-
-
(263)
1,269,203
1,228,918
40,285
40,285
1,269,203
147
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(*1) Credit grade of corporates are AAA ~ BBB.
(*2) Credit grade of corporates are A- ~ BBB.
(*3) Credit grade of corporates are BBB- ~ C.
(2)
Market risk
Market risk is the possible risk of loss arising from trading position and non-trading position as a result of the
volatility of market factors such as interest rates, stock prices and foreign exchange rates, and the Company’s
main market risk is interest rate risk.
The Company estimates and manages risks related to changes in interest rate due to the difference in the
maturities of interest-bearing assets and liabilities and discrepancies in the terms of interest rates. Cash flows
(both principal and interest), interest bearing assets and liabilities, presented by each re-pricing date, are as
follows (Unit: Korean Won in millions):
December 31, 2020
Within 3
months
(*1)
4 to 6
months
7 to 9
months
10 to 12
months
1 to 5
years
Over 5
years
Total
Asset:
Loans and other
financial assets at
amortized cost (*1)
Financial assets at
FVTOCI (*2)
Sub-total
Liability:
Debentures
Asset:
Loans and other
financial assets at
amortized cost (*1)
Liability:
Debentures
469,756
-
469,756
-
-
-
-
-
-
-
-
-
-
-
-
-
469,756
149,614
149,614
149,614
619,370
6,100
6,100
6,100
6,100
292,074
1,027,917
1,344,391
December 31, 2019
Within 3
months
(*1)
4 to 6
months
7 to 9
months
10 to 12
months
1 to 5
years
Over 5
years
Total
445,070
733,330
-
-
-
-
1,178,400
5,486
5,486
5,486
5,487
87,780 1,049,863 1,159,588
(*1) The principal and interest cash flows of cash and cash equivalents are included in the cash flows within three months, with
69,206 million won and 43,670 million won as of December 31, 2020 and December 31, 2019, respectively.
(*2) Due to the uncertain timing of the sale, it is included in the section for over 5 years in accordance with the expiration of the
remaining contract
(3)
Liquidity risk
cash flows analysis (i.e. based on remaining maturity and contract period, etc.).
2) Maturity analysis of non-derivative financial liabilities
a) Cash flows of principals and interests by remaining contractual maturities of non-derivative financial
liabilities are as follows (Unit: Korean Won in millions):
December 31, 2020
Within 3
months
6,100
722
4 to 6
months
6,100
705
10,247
3,304
7 to 9
months
10 to 12
months
6,100
705
-
6,100
704
391
1 to 5
years
292,074
2,768
Over
5 years
1,027,917
-
Total
1,344,391
5,604
2,604
-
16,546
17,069
10,109
6,805
7,195
297,446
1,027,917
1,366,541
December 31, 2019
Within 3
months
5,486
335
6,131
11,952
4 to 6
months
5,486
335
2,043
7,864
7 to 9
months
10 to 12
months
5,486
335
-
5,821
5,487
336
183
6,006
1 to 5
years
87,780
249
Over
5 years
1,049,863
-
Total
1,159,588
1,590
820
88,849
-
1,049,863
9,177
1,170,355
Debentures
Lease liabilities
Other financial
liabilities
Total
Debentures
Lease liabilities
Other financial
liabilities
Total
b) Cash flows of principals and interests by expected maturities of non-derivative financial liabilities are
as follows (Unit: Korean Won in millions):
December 31, 2020
Within 3
months
6,100
722
4 to 6
months
6,100
705
7 to 9
months
6,100
705
10 to 12
months
6,100
704
1 to 5
years
292,074
2,768
Over 5
years
1,027,917
-
Total
1,344,391
5,604
10,247
3,304
-
391
2,604
-
16,546
17,069
10,109
6,805
7,195
297,446
1,027,917
1,366,541
December 31, 2019
Within 3
months
5,486
335
4 to 6
months
5,486
335
7 to 9
months
5,486
335
6,131
11,952
2,043
7,864
-
5,821
5,487
336
183
6,006
10 to 12
months
1 to 5
years
Over 5
years
1,049,863
-
Total
1,159,588
1,590
87,780
249
820
88,849
-
1,049,863
9,177
1,170,355
Debentures
Lease liabilities
Other financial
liabilities
Total
Debentures
Lease liabilities
Other financial
liabilities
Total
Liquidity risk refers to the risk that the Company may encounter difficulties in meeting obligations from its
financial liabilities.
(4)
Capital management
1) Liquidity risk management
Liquidity risk management is to prevent damages from potential liquidity shortages with effective risk
management that could arise from mismatching the assets and liabilities or unexpected cash outflows. The
financial liabilities in the statement of financial position that are relevant to liquidity risk are incorporated
within the scope of risk management.
The Company manages liquidity risk by identifying the maturity gap and such gap ratio through various
The Company complies with the standard of capital adequacy provided by financial regulatory authorities. The
capital adequacy standard is based on Basel published by Basel III Committee on Banking Supervision in Bank
for International Settlement and was implemented in Korea in December 2013. The capital adequacy ratio is
calculated by dividing own capital by asset (weighted with a risk premium – risk weighted assets) based on the
consolidated financial statements of the Company.
According to the above regulations, the Company is required to meet the following minimum requirements:
Common Equity Tier 1 capital ratio of 8.0% and 7.0%, a Tier 1 capital ratio of 9.5% and 8.5%, and a minimum
148
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149
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
total capital ratio of 11.5% and 10.5% as of December 31, 2020, and 2019, respectively.
5.
STATEMENTS OF CASH FLOWS
Details of the Company’s capital adequacy ratio are as follows (Unit: Korean Won in millions):
(1) Details of cash and cash equivalents are as follows (Unit: Korean Won in millions):
Tier 1 capital
Other Tier 1 capital
Tier 2 capital
Total risk-adjusted capital
Risk-weighted assets for credit risk
Risk-weighted assets for market risk
Risk-weighted assets for operational risk
Total risk-weighted assets
Common Equity Tier 1 ratio
Tier 1 capital ratio
Total capital ratio
December 31, 2020
December 31, 2019
19,828,094
3,533,648
4,086,035
27,447,777
178,114,590
6,086,905
14,067,185
198,268,680
10.00%
11.78%
13.84%
19,135,300
3,340,252
4,639,519
27,115,071
209,802,895
5,586,757
12,656,301
228,045,953
8.39%
9.86%
11.89%
Demand deposits
Fixed deposits
Total
December 31, 2020
December 31, 2019
19,176
50,000
69,176
43,670
-
43,670
(2) Significant transactions of investing activities and financing activities not involving cash inflows and
outflows are as follows (Unit: Korean Won in millions):
Changes in other comprehensive income related to
valuation of financial assets at FVTOCI
Increase in account payables related to acquisition of
premises and equipment
Increase in account payables related to acquisition of
intangible assets
Changes in right-of-use assets due to new contract
Changes in right-of-use assets due to renewal of contract
Changes in lease liabilities due to new contract
Changes in lease liabilities due to renewal of contract
Comprehensive stock transfer
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
(280)
60
18
1,476
4,935
1,360
4,829
-
-
-
-
3,439
-
2,812
-
18,502,760
(3) Adjustments of liabilities from financing activities for the year ended December 31, 2020 and for the period
from January 11, 2019 (date of incorporation) to December 31, 2019 are as follows (Unit: Korean Won in
millions):
For the year ended December 31, 2020
Not involving cash inflows and
outflows
Debentures
Lease liabilities
Total
Beginning
Cash flow
Amortization
Others (*)
947,679
1,568
949,247
199,556
(2,203)
197,353
268
29
297
-
6,145
6,145
Ending
1,147,503
5,539
1,153,042
(*) Changes in lease liabilities due to new and renewed contracts include 1,360 million won and 4,829 million
won, respectively.
For the period from January 11,2019 (date of incorporation) to December 31, 2019
Not involving cash inflows and
outflows
Debentures
Lease liabilities
Total
Beginning
Cash flow
Amortization
Others (*)
Ending
-
-
-
947,604
(1,289)
946,315
75
45
120
-
2,812
2,812
947,679
1,568
949,247
(*) Changes in lease liabilities due to new contracts include 2,812 million won.
150
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
6. FINANCIAL ASSETS AT FVTPL
(3) Changes in the allowance for credit losses and gross carrying amount of due from banks are as follows (Unit:
(1) Details of financial assets at FVTPL as of December 31, 2020 and December 31, 2019 are as follows (Unit:
Korean Won in millions):
Financial assets at fair value through profit or loss
mandatorily measured at fair value
7,247
9,434
December 31, 2020
December 31, 2019
(2) Financial assets at fair value through profit or loss mandatorily measured at fair value are as follows (Unit:
Korean Won in millions):
Derivatives assets
December 31, 2020
December 31, 2019
7,247
9,434
(3) Financial assets at FVTPL designated as upon initial recognition is nil among financial assets at FVTPL as
of December 31, 2020 and December 31, 2019.
7. FINANCIAL ASSETS AT FVTOCI
(1) Details of financial assets at FVTOCI as of December 31, 2020 and December 31, 2019 are as follows
(Unit: Korean Won in millions):
Hybrid securities
December 31, 2020
December 31, 2019
149,614
(2) Details of equity securities designated as financial assets at FVTOCI as of December 31, 2020 and
December 31, 2019 are as follows (Unit: Korean Won in millions):
Purpose of acquisition
December 31, 2020
December 31, 2019
Investment for political purpose
149,614
-
-
8. LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST
(1) Details of loans and other financial assets at amortized cost as of December 31, 2020 and December 31,
2019 are as follows (Unit: Korean Won in millions):
Due from banks
Other financial assets
Total
December 31, 2020
December 31, 2019
399,853
219,264
619,117
1,129,738
139,465
1,269,203
(2) Details of due from banks are as follows (Unit: Korean Won in millions):
Due from banks in local currency:
Due from depository banks
Loss allowance
Total
December 31, 2020
December 31, 2019
400,000
(147)
399,853
1,130,000
(262)
1,129,738
Korean Won in millions):
1) Allowance for credit losses
For the year ended December 31, 2020
Stage 1
Stage 2
Stage 3
Total
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Reversal of allowance for credit loss
Ending balance
(262)
-
-
-
115
(147)
-
-
-
-
-
-
-
-
-
-
-
-
(262)
-
-
-
115
(147)
For the period from January 11, 2019
(date of incorporation) to December 31, 2019
Stage 1
Stage 2
Stage 3
Total
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Provision of allowance for credit loss
Ending balance
-
-
-
-
(262)
(262)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(262)
(262)
2)
Gross carrying amount
For the year ended December 31, 2020
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net increase (decrease)
Ending balance
Stage 1
1,130,000
-
-
-
(730,000)
400,000
Stage 2
Stage 3
-
-
-
-
-
-
Total
1,130,000
-
-
-
(730,000)
400,000
-
-
-
-
-
-
For the period from January 11,2019
(date of incorporation) to December 31, 2019
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net increase (decrease)
Ending balance
Stage 1
-
-
-
-
1,130,000
1,130,000
Stage 2
Stage 3
-
-
-
-
-
-
Total
-
-
-
-
1,130,000
1,130,000
-
-
-
-
-
-
(4) Details of other financial assets are as follows (Unit: Korean Won in millions):
Receivables
Accrued income
Lease deposits
Allowance for credit losses
Total
December 31, 2020
December 31, 2019
215,819
1,419
2,026
-
219,264
134,891
3,641
934
(1)
139,465
152
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(5) Changes in the allowances for credit losses and gross carrying amount of other financial assets are as follows
9.
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
(Unit: Korean Won in millions):
1)
Allowance for credit losses
For the year ended December 31, 2020
Stage 1
Stage 2
Stage 3
Total
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Reversal of allowance for credit loss
Ending balance
(1)
-
-
-
1
-
-
-
-
-
-
-
-
-
-
-
-
-
(1)
-
-
-
1
-
For the period from January 11, 2019
(date of incorporation) to December 31, 2019
Stage 1
Stage 2
Stage 3
Total
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Provision of allowance for credit loss
Ending balance
-
-
-
-
(1)
(1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1)
(1)
2)
Gross carrying amount
For the year ended December 31, 2020
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net increase (decrease)
Ending balance
Stage 1
139,466
-
-
-
79,798
219,264
Stage 2
Stage 3
-
-
-
-
-
-
Total
139,466
-
-
-
79,798
219,264
-
-
-
-
-
-
For the period from January 11, 2019
(date of incorporation) to December 31, 2019
Stage 1
Stage 2
Stage 3
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net increase (decrease)
Ending balance
-
-
-
-
139,466
139,466
-
-
-
-
-
-
Total
-
-
-
-
139,466
139,466
-
-
-
-
-
-
(1) The fair value hierarchy
The fair value hierarchy is determined by the levels of judgment involved in estimating fair values of financial
assets and liabilities. The specific financial instruments characteristics and market condition such as volume of
transactions and transparency are reflected to the market observable inputs. The fair value hierarchy gives the
highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Company
maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value
of its financial assets and financial liabilities. Fair value is measured based on the perspective of a market
participant. As such, even when market assumptions are not readily available, the Company’s own assumptions
reflect those that market participants would use for measuring the assets or liabilities at the measurement date.
The fair value measurement is described in the one of the following three levels used to classify fair value
measurements:
•
•
•
Level 1—fair value measurements are those derived from quoted prices (unadjusted) in active markets for
identical assets or liabilities. The types of financial assets or liabilities generally included in Level 1 are
publicly traded equity securities, derivatives, and debt securities issued by governmental bodies.
Level 2— fair value measurements are those derived from inputs other than quoted prices included within
Level 2 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived
from prices). The types of financial assets or liabilities generally included in Level 2 are debt securities
not traded in active markets and derivatives traded in OTC but not required significant judgment.
Level 3— fair value measurements are those derived from valuation technique that include inputs for the
assets or liabilities that are not based on observable market data (unobservable inputs). The types of
financial assets or liabilities generally included in Level 3 are non-public securities and derivatives and
debt securities of which valuation techniques require significant judgments and subjectivity.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the
level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value
measurement. The Company’s assessment of the significance of a particular input to a fair value measurement in
its entirety requires judgment and consideration of inherent factors of the asset or liability.
(2) Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit: Korean
Won in millions):
Financial assets:
Financial assets at FVTPL
Derivative assets
Financial assets at FVTOCI
Hybrid securities
Financial assets:
Financial assets at FVTPL
Derivative assets
Level 1
December 31, 2020
Level 3
Level 2
Total
-
-
-
-
7,247
7,247
149,614
149,614
Level 1
Level 2
Level 3
Total
December 31, 2019
-
-
9,434
9,434
154
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Financial assets measured at FVTPL and financial assets measured at FVTOCI are recognized at fair value. Fair
value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction
between market participants at the measurement date.
Financial instruments are measured at fair value using a quoted market price in active markets. If there is no
active market for a financial instrument, the Company determines the fair value using valuation methods.
Valuation methods and input variables for each type of financial instruments are as follows:
Derivatives
The fair value is measured considering the
Values of underlying assets,
Valuation methods
Input variables
price and volatility of the underlying assets
using the Binomial Tree, a commonly used
technique in the market
Volatility, Risk-free market return,
Corporate bond yield rate
Hybrid securities
The fair value is measured using the Hull and
White model and the Monte Carlo
Simulations.
YTM Matrix, Additive spread by
grade, Risk spread by entity,
Effective Credit rating, Issuing
information by item, Interest rate
volatility estimate
Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and
significant but unobservable inputs are as follows:
Fair value
measurement
technique
Option valuation
model and others
Type
Equity related
Derivative
assets
Hybrid
securities
Hull and White
model and others
Hybrid
securities
related
Significant
unobservable
inputs
Value of
underlying
assets and
volatility
Interest rate
(YTM)
Range
Impact of changes in significant
unobservable inputs on fair value
measurement
22.49% ~ 27.49% Variation of fair value increases as
value of underlying assets and
volatility increases.
Interest rate
0.42 %~ 1.83%
Market rate 1.84%
~ 4.60%
Variation of fair value increases as
variation of interest rate (YTM)
increases.
The fair value of financial assets classified as level 3 uses external valuation figures.
(3) Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows.
(Unit: Korean Won in millions):
For the year ended December 31, 2020
Beginning
balance
Net
Income
Other
comprehensive
income
Purchases/
issuances
Disposals/
settlements
Transfer to or
out of Level
3
Ending
balance
Financial assets:
Financial assets at
FVTPL
Derivative assets
Financial assets at
FVTOCI
Hybrid securities
Financial assets:
Financial assets at
FVTPL
Derivative assets
9,434
(2,187)
-
-
-
-
(386)
150,000
-
-
-
7,247
-
149,614
For the period from January 11, 2019(date of incorporation) to December 31, 2019
Beginning
balance
Net
Income
Other
comprehensive
income
Purchases/
issuances
Disposals/
settlements
Transfer to or
out of Level
3
Ending
balance
-
9,434
-
-
-
-
9,434
(4) Sensitivity analysis results on reasonable fluctuation of the significant unobservable input variables for the
fair value of Level 3 financial instruments are as follows.
The sensitivity analysis on financial instruments shows how changes in unobservable inputs affect changes in
fair value of the instruments through favorable and unfavorable changes. When the fair value of a financial
instrument is affected by more than one unobservable assumption, the below table reflects the most favorable or
the most unfavorable changes which resulted from varying the assumptions individually. The sensitivity analysis
was performed for equity related derivatives of which fair value changes are recognized as net income and
hybrid securities of which fair value changes are recognized as other comprehensive income among level 3
financial instruments.
The following table presents the sensitivity analysis to disclose the effect of reasonably possible volatility on the
fair value of a Level 3 financial instruments (Unit: Korean Won in millions):
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)
Financial assets at FVTOCI
Hybrid securities (*2)
Net income
Favorable
Unfavorable
Other comprehensive income (loss)
Unfavorable
Favorable
December 31, 2020
724
-
(724)
-
-
6,647
-
(6,365)
(*1) Fair value changes of equity related derivatives are calculated by increasing or decreasing stock price volatility rate of
underlying assets and correlation, which are major unobservable variables, by 10%, respectively.
(*2) Fair value changes of hybrid securities are calculated by increasing or decreasing market rate, which is the major
unobservable variable, by 1%, respectively.
Financial assets:
Financial assets at fair value through profit or loss mandatorily
measured at fair value
Derivative assets (*)
December 31, 2019
Net income
Favorable
Unfavorable
943
(943)
(*) Fair value changes of equity related derivatives are calculated by increasing or decreasing stock price volatility rate of
underlying assets and correlation, which are major unobservable variables, by 10%, respectively.
(5) Fair value and carrying amount of financial liabilities that are recorded at amortized cost are as follows
(Unit: Korean Won in millions):
Financial assets:
Loans and other financial assets at
amortized cost (*)
Financial liabilities:
Debentures
Other financial liabilities (*)
December 31, 2020
Fair value
Level 1
Level 2
Level 3
Total
Carrying amount
-
-
-
-
619,117
619,117
619,117
1,186,034
-
-
16,546
1,186,034
16,546
1,147,503
16,546
(*) The carrying amount is disclosed at fair value considering the carrying amount as an approximation of fair value.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
December 31, 2019
Fair value
Level 1
Level 2
Level 3
Total
Carrying amount
Financial assets:
Loans and other financial assets at
amortized cost (*)
Financial liabilities:
Debentures
Other financial liabilities (*)
`
-
-
-
-
1,269,203
1,269,203
1,269,203
951,387
-
-
9,177
951,387
9,177
947,679
9,177
(*) The carrying amount is disclosed at fair value considering the carrying amount as an approximation of fair value.
The fair values of financial instruments are measured using quoted market price in active markets. In case there
is no active market for financial instruments, the Company determines the fair value using valuation methods.
For the disclosed items in which book value is considered to be the approximate value of fair value, valuation
techniques and input variables are not disclosed. Valuation techniques and input variables for the fair value of
financial liabilities that are recorded at amortized cost are as follows:
Debentures
Valuation methods
The fair value is measured by discounting the projected cash
flows of debt products by applying the market discount rate
that is reflecting credit rating of the Company.
Input variables
Risk-free market rate,
etc.
(6) Financial instruments by category
Carrying amounts of financial assets and liabilities by each category are as follows (Unit: Korean Won in
millions):
Financial assets
Financial assets at FVTPL
December 31, 2020
Financial assets at
FVTOCI
Financial
assets at
amortized cost
Deposits
Hybrid securities
Derivative assets
Other financial assets
Total
-
-
7,247
-
7,247
-
149,614
-
-
149,614
399,853
-
-
219,264
619,117
Financial assets
Deposits
Derivative assets
Other financial assets
Total
Financial assets at FVTPL
-
9,434
-
9,434
December 31, 2019
Financial assets at
amortized cost
1,129,738
-
139,465
1,269,203
Total
399,853
149,614
7,247
219,264
775,978
Total
1,129,738
9,434
139,465
1,278,637
Financial liabilities
Debentures
Other financial liabilities
Total
December 31, 2020
Financial liabilities at amortized cost
December 31, 2019
Financial liabilities at amortized cost
1,147,503
16,546
1,164,049
947,679
9,177
956,856
(7)
Income or expense from financial instruments by category
Income or expense from financial assets and liabilities by each category for the year ended December 31, 2020
and for the period from January 11, 2019 (date of incorporation) to December 31, 2019 are as follows (Unit:
Korean Won in millions):
For the year ended December 31, 2020
Interest
Income(expense)
Reversal
(Provision) of
credit loss
Financial assets at FVTPL
Financial assets at FVTOCI
Loans and other financial assets
at amortized cost (*)
Financial liabilities at amortized
cost
Total
-
-
10,082
(22,992)
(12,910)
-
-
116
-
116
(*) 2,910 million won interest income of cash and cash equivalents are included.
Others
Total
(920)
2,580
(920)
2,580
-
10,198
-
1,660
(22,992)
(11,134)
Financial assets at FVTPL
Loans and other financial assets
at amortized cost (*)
Financial liabilities at amortized
cost
Total
Interest
Income(expense)
-
7,741
(7,644)
97
(*) 4,126 million won interest income of cash equivalents is included.
For the period from January 11, 2019 (date of incorporation)
to December 31, 2019
Reversal
(Provision) of
credit loss
Others
Total
-
9,434
(263)
-
(263)
-
-
9,434
9,434
7,478
(7,644)
9,268
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
10. INVESTMENTS IN SUBSIDIARIES
(2) Changes in the carrying value of investments in subsidiaries are as follows (Unit: Korean Won in millions):
(1) Details of Investments in subsidiaries are as follows (Unit: Korean Won in millions and number of shares):
Beginning balance
For the year ended December 31, 2020
Disposal
Acquisition
Ending balance
Subsidiaries
Woori Bank
Woori Card Co., Ltd.
Woori Financial Capital Co., Ltd.
Woori Investment Bank Co., Ltd.
Woori Asset Trust Co., Ltd
Woori Asset Management Corp.
Woori Credit Information Co., Ltd.
Woori Fund Service Co., Ltd.
Woori Private Equity Asset Management Co., Ltd.
Woori Global Asset Management Co., Ltd.
Woori FIS Co., Ltd.
Woori Finance Research Institute Co., Ltd.
Location
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
Korea
December 31, 2020
Capital
stock
3,581,400
896,300
287,700
437,100
15,300
20,000
5,000
10,000
30,000
20,000
24,500
3,000
Main business
Finance
Finance
Finance
Other credit finance
Finance
Finance
Credit information
Finance
Finance
Finance
System software development
& maintenance
Other service business
Number of
shares
Percentage of
ownership
(%) (*2)
December 31, 2019
Percentage of
ownership
(%) (*2)
Number of
shares
Subsidiaries (*1)
Woori Bank
Woori Card Co., Ltd.
Woori Financial Capital Co., Ltd.
Woori Investment Bank Co., Ltd.
Woori Asset Trust Co., Ltd
Woori Asset Management Corp.
Woori Credit Information Co., Ltd.
Woori Fund Service Co., Ltd.
Woori Private Equity Asset
Management Co., Ltd.
Woori Global Asset Management Co.,
Ltd.
Woori FIS Co., Ltd.
Woori Finance Research Institute Co.,
Ltd.
716,000,000
179,266,200
42,605,000
513,162,392
1,560,000
2,920,000
1,008,000
2,000,000
6,000,000
4,000,000
4,900,000
600,000
Financial
statements
date of use
December
31, 2020
December
31, 2020
December
31, 2020
December
31, 2020
December
31, 2020
December
31, 2020
December
31, 2020
December
31, 2020
December
31, 2020
December
31, 2020
December
31, 2020
December
31, 2020
100.0
100.0
76.8
58.7
67.2
73.0
100.0
100.0
100.0
100.0
100.0
100.0
676,000,000
179,266,200
-
403,404,538
1,560,000
2,920,000
1,008,000
2,000,000
6,000,000
4,000,000
4,900,000
600,000
Financial
statements
date of use
December
31,2019
December
31,2019
-
December
31,2019
December
31,2019
December
31,2019
December
31,2019
December
31,2019
December
31,2019
December
31,2019
December
31,2019
December
31,2019
100.0
100.0
-
59.8
67.2
73.0
100.0
100.0
100.0
100.0
100.0
100.0
(*1) Only subsidiaries invested directly by the Company are included.
(*2) The percentage is based on the effective shareholding rate relative to the number of stocks outstanding.
Woori Bank
Woori Card Co., Ltd.
Woori Financial Capital Co., Ltd. (*)
Woori Investment Bank Co., Ltd.
Woori Asset Trust Co., Ltd
Woori Asset Management Corp.
Woori Credit Information Co., Ltd.
Woori Fund Service Co., Ltd.
Woori Private Equity Asset
Management Co., Ltd.
Woori Global Asset Management Co.,
Ltd.
Woori FIS Co., Ltd.
Woori Finance Research Institute Co.,
Ltd.
Total
17,921,151
1,118,367
-
392,795
224,198
122,449
16,466
13,939
7,797
33,000
21,754
1,000,000
-
633,758
54,878
-
-
-
-
-
-
-
1,677
19,873,593
-
1,688,636
-
-
-
-
-
-
-
-
-
-
-
-
-
18,921,151
1,118,367
633,758
447,673
224,198
122,449
16,466
13,939
7,797
33,000
21,754
1,677
21,562,229
(*) After the Company acquiring 76.8% of Aju Capital Co., Ltd. in December 2020, Aju Capital Co. changed its name to
Woori Financial Capital Co., Ltd.
For the period from January 11, 2019 (date of incorporation) to December 31, 2019
Woori Bank (*1)
Woori Card Co., Ltd. (*2)
Woori Investment Bank Co., Ltd. (*2)
Woori Asset Trust Co., Ltd (*3)
Woori Asset Management Corp. (*4)
Woori Credit Information Co., Ltd.
(*1)
Woori Fund Service Co., Ltd. (*1)
Woori Private Equity Asset
Management Co., Ltd. (*1)
Woori Global Asset Management Co.,
Ltd. (*5)
Woori FIS Co., Ltd. (*1)
Woori Finance Research Institute Co.,
Ltd. (*1)
Total
Beginning balance
(date of incorporation)
17,921,151
-
-
-
-
16,466
13,939
7,797
-
21,754
1,677
17,982,784
Acquisition
Disposal
Ending balance
-
1,118,367
392,795
224,198
122,449
-
-
-
33,000
-
-
1,890,809
-
-
-
-
-
-
-
-
-
-
-
-
17,921,151
1,118,367
392,795
224,198
122,449
16,466
13,939
7,797
33,000
21,754
1,677
19,873,593
(*1) Acquired by the comprehensive stock transfer at the date of incorporation.
(*2) Woori Card Co., Ltd. and Woori Investment Bank Co., Ltd. were transferred from second-tier subsidiaries to
subsidiaries in September 2019.
(*3) After the Company acquiring 67.2% of Kukje Trust Co. stakes, Kukje Trust Co. changed its name to Woori Asset Trust
Co., Ltd. in December 2019.
(*4) After the Company acquiring 73% of Tongyang Asset Management Corporation stakes, Tongyang Asset Management
Corporation changed its name to Woori Asset Management Corporation in August 2019.
(*5) After obtaining approval from the Financial Services Commission to change the major shareholder of ABL Global
Asset Management Co., Ltd. in July 2019, the remaining payment was completed in August 2019. After the
acquisition, the company name was changed to Woori Global Asset Management Co., Ltd.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
11. PREMISES AND EQUIPMENT
(4) Details of right-of-use assets as of December 31, 2020 and December 31, 2019 are as follows (Unit: Korean
(1) Details of premises and equipment as of December 31, 2020 and December 31, 2019 are as follows (Unit:
Korean Won in millions):
Premises and
equipment(owned)
Right-of-use asset
Total
Premises and
equipment(owned)
Right-of-use asset
Total
Building
December 31, 2020
Equipment and
Vehicles
Leasehold
improvements
-
4,936
4,936
-
1,436
1,436
Building
3,779
590
4,369
3,233
-
3,233
December 31, 2019
Equipment and
Vehicles
Leasehold
improvements
3,767
384
4,151
1,796
-
1,796
Total
7,012
5,526
12,538
Total
5,563
1,820
7,383
(2) Details of premises and equipment (owned) as of December 31, 2020 and December 31, 2019 are as follows
(Unit: Korean Won in millions):
Equipment and Vehicles
Leasehold improvements
Total
December 31, 2020
Acquisition cost
Accumulated depreciation
Net carrying amount
5,572
(1,793)
3,779
4,283
(1,050)
3,233
Equipment and Vehicles
Leasehold improvements
Total
December 31, 2019
Acquisition cost
Accumulated depreciation
Net carrying amount
4,538
(771)
3,767
2,184
(388)
1,796
(3) Details of changes in premises and equipment (owned) are as follows (Unit: Korean Won in millions):
Beginning balance
Acquisitions
Depreciation
Ending balance
Beginning balance
Acquisitions
Depreciation
Ending balance
Equipment and Vehicles
For the year ended December 31, 2020
Leasehold improvements
Total
3,767
1,034
(1,022)
3,779
1,796
2,100
(663)
3,233
For the period from January 11, 2019 (date of incorporation) to December 31, 2019
Leasehold improvements
Equipment and Vehicles
Total
-
4,538
(771)
3,767
-
2,184
(388)
1,796
-
6,722
(1,159)
5,563
9,855
(2,843)
7,012
6,722
(1,159)
5,563
5,563
3,134
(1,685)
7,012
Won in millions):
Acquisition cost
Accumulated depreciation
Net carrying amount
Acquisition cost
Accumulated depreciation
Net carrying amount
Building
December 31, 2020
Equipment and Vehicles
8,703
(3,767)
4,936
2,871
(1,435)
1,436
Building
1,085
(495)
590
December 31, 2019
Equipment and Vehicles
568
(184)
384
Total
Total
9,788
(4,262)
5,526
3,439
(1,619)
1,820
(5) Details of changes in right-of-use assets for the year ended December 31, 2020 and for the period from
January 11, 2019 (date of incorporation) to December 31, 2019 are as follows (Unit: Korean Won in millions):
Beginning balance
New contracts
Changes in contract
Termination
Depreciation
Ending balance
Beginning balance
New contracts
Depreciation
Ending balance
Building
For the year ended December 31, 2020
Equipment and Vehicles
Total
1,436
896
4,936
-
(2,332)
4,936
384
580
-
(39)
(335)
590
1,820
1,476
4,936
(39)
(2,667)
5,526
For the period from January 11, 2019 (date of incorporation) to December 31, 2019
Equipment and Vehicles
Building
Total
-
2,871
(1,435)
1,436
-
568
(184)
384
-
3,439
(1,619)
1,820
12. INTANGIBLE ASSETS
(1) Details of intangible assets are as follows (Unit: Korean Won in millions):
Software
Development cost
Membership
deposit
Total
December 31, 2020
Acquisition cost
Accumulated
amortization
Net carrying amount
3,097
(1,832)
1,265
2,231
(585)
1,646
2,371
-
2,371
December 31, 2019
7,699
(2,417)
5,282
Acquisition cost
Accumulated amortization
Net carrying amount
Software
Development cost
Total
2,729
(1,144)
1,585
1,901
(176)
1,725
4,630
(1,320)
3,310
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(2) Details of changes in intangible assets are as follows (Unit: Korean Won in millions):
14. PROVISIONS
For the year ended December 31, 2020
Software
1,585
368
(688)
1,265
Development cost
1,725
330
(409)
1,646
Membership
deposit
-
2,371
-
2,371
Total
3,310
3,069
(1,097)
5,282
For the period from January 11, 2019 (date of incorporation)
to December 31, 2019
Software
Development cost
Total
-
2,729
(1,144)
1,585
-
1,901
(176)
1,725
-
4,630
(1,320)
3,310
Beginning balance
Acquisitions
Amortization
Ending balance
Beginning balance
Acquisitions
Amortization
Ending balance
13. DEBENTURES
Details of debentures are as follows (Unit: Korean Won in millions):
Face value of bonds:
General bonds
Subordinated bonds
Sub-total
Deducted item:
Discounts on bonds
Total
December 31, 2020
December 31, 2019
Interest rate (%)
Amount
Interest rate (%)
Amount
1.23
2.13 ~ 2.55
200,000
950,000
1,150,000
-
2.13 ~ 2.55
(2,497)
1,147,503
-
950,000
950,000
(2,321)
947,679
(1) Details of provisions are as follows (Unit: Korean Won in millions):
Asset retirement obligation
782
600
December 31, 2020
December 31, 2019
(2) Changes in asset retirement obligation are as follows (Unit: Korean Won in millions):
Beginning balance
Increase
Amortization
Ending balance
For the year ended
December 31,2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
600
168
14
782
-
588
12
600
The amount of the asset retirement obligation is the present value of the best estimate of future expected
expenditure to settle the obligation – arising from leased assets used as offices as of December 31, 2020,
discounted by appropriate discount rate. The restoration cost is expected to occur by the end of the lease period
of each office, and the Company used the average amount of the major subsidiaries’ actual recovery cost and the
inflation rate for the past 3 years in order to estimate future recovery cost.
15. NET DEFINED BENEFIT LIABILITY(ASSET)
The Company’s pension plan is based on the defined benefit retirement pension plan. Employees and directors
with one or more years of service are entitled to receive a payment upon termination of their employment, based
on their length of service and rate of salary at the time of termination. The assets of the plans are measured at
their fair value at the end of reporting date. The plan liabilities are measured using the projected unit method,
which takes into account of projected earnings' increase, using actuarial assumptions that give the best estimate
of the future cash flows that will arise under the plan liabilities.
The Company is exposed to various risks through defined benefit retirement pension plan, and the most
significant risks are as follows:
Volatility of asset
The defined benefit obligation was estimated with an interest rate
Decrease in profitability of blue
A decrease in profitability of blue chip bonds will be offset by some
calculated based on blue chip corporate bonds earnings. A deficit
may occur if the rate of return of plan assets falls short of the interest
rate.
chip bonds
Risk of inflation
increase in the value of debt securities that the employee benefit plan
owns but will bring an increase in the defined benefit obligation.
Defined benefit obligations are related to inflation rate; the higher the
inflation rate is, the higher the level of liabilities. Therefore, deficit
occurs in the system if an inflation rate increases.
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(1) Details of net defined benefit liability(asset) are as follows (Unit: Korean Won in millions):
Present value of defined benefit obligation
Fair value of plan assets
Net defined benefit liability(asset)
December 31, 2020
December 31, 2019
20,083
(23,592)
(3,509)
14,174
(10,692)
3,482
(2) Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in millions):
Beginning balance
Transfer-in / out
Recruit / Transfer in
Current service cost
Interest cost
Remeasurements
Financial assumption
Demographic assumptions
Experience adjustment
Retirement benefit paid
Others
Ending balance
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
14,174
2,441
1,266
2,127
410
298
-
454
(1,007)
(80)
20,083
-
8,276
3,360
1,415
253
(457)
542
762
(54)
77
14,174
(3) Changes in the plan assets are as follows (Unit: Korean Won in millions):
Beginning balance
Transfer-in / out
Interest income
Remeasurements
Employer’s contributions
Retirement benefit paid
Ending balance
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
10,692
4,155
304
(86)
8,760
(233)
23,592
-
8,877
129
(24)
1,710
-
10,692
(4) The fair value of plan assets as of December 31, 2020 and December 31, 2019 is as follows (Unit: Korean
Won in millions):
Cash and due from banks
December 31, 2020
December 31, 2019
23,592
10,692
Meanwhile, the actual revenue of the current and prior term plan assets is 218 million won and 105 million won,
respectively. The contribution expected to be paid in the fiscal year beginning after the reporting period is 2,148
million won.
(5) The amount recognized in profit or loss and total comprehensive income related to the defined benefit plan
for the year ended December 31, 2020 and for the period from January 11, 2019 (date of incorporation) to
December 31, 2019 is as follows (Unit: Korean Won in millions):
Current service cost
Recruit / Transfer in
Net interest expense
Cost recognized in net income
Remeasurements (*)
Cost recognized in total comprehensive
income
(*) The amount is before income tax effect.
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
2,127
1,266
106
3,499
838
4,337
1,415
3,360
124
4,899
871
5,770
(6) Key actuarial assumptions used in defined benefit liability measurement are as follows:
Discount rate
Future wage growth rate
Mortality rate
Retirement rate
December 31, 2020
2.48%
5.50%
Issued by Korea Insurance
Development Institute
Issued by Korea Insurance
Development Institute
December 31, 2019
2.40%
5.27%
Issued by Korea Insurance
Development Institute
Issued by Korea Insurance
Development Institute
The weighted average maturity of the defined benefit obligation is 10.84 years.
(7) The sensitivity to actuarial assumptions used in the assessment of defined benefit obligation is as follows
(Unit: Korean Won in millions):
Discount rate
Future wage growth rate
Increase by 1% point
Decrease by 1% point
Increase by 1% point
Decrease by 1% point
December 31, 2020
December 31, 2019
(1,909)
2,222
2,134
(1,876)
(1,367)
1,596
1,535
(1,345)
16. OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES
Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):
Other financial liabilities:
Accounts payable
Accrued expenses
Lease liabilities
Other miscellaneous financial liabilities
Sub-total
Other liabilities:
Other miscellaneous liabilities
Total
December 31, 2020
December 31, 2019
6,102
10,444
5,539
-
22,085
570
22,655
2,424
6,651
1,568
102
10,745
4,142
14,887
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17. DERIVATIVES
(4) Hybrid securities
Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions):
The bond-type hybrid securities classified as owner’s equity are as follows (Unit: Korean Won in millions):
December 31, 2020
December 31, 2019
Nominal amount
Assets
For trading
Nominal amount
Assets
For trading
Equity Forwards
130,599
7,247
117,535
9,434
Derivatives held for trading are classified into financial assets at FVTPL in the statements of financial position
(seeing Note 6).
18. EQUITY
(1) Details of equity as of December 31, 2020 and December 31, 2019 are as follows (Unit: Korean Won in
millions):
Capital
Hybrid securities
Capital surplus
Accumulated other comprehensive income
Retained earnings (*1) (*2)
Total
December 31, 2020
December 31, 2019
3,611,338
1,895,322
14,874,084
(1,518)
664,746
21,043,972
3,611,338
997,544
14,874,084
(631)
623,930
20,106,265
(*1) The regulatory reserve for credit loss in retained earnings amounted to 692 million won as of December 31, 2020 in
accordance with the relevant regulation.
(*2) The earned surplus reserve in retained earnings amounted to 62,830 million won as of December 31, 2020 in accordance
with the Article 53 of the Financial Holding Company Act.
(2) The number of authorized shares and others of the Company are as follows:
Shares of common stock authorized
Par value
Shares of common stock issued
Capital stock
December 31, 2020
December 31, 2019
4,000,000,000 Shares
5,000 Won
722,267,683 Shares
3,611,338 million won
4,000,000,000 Shares
5,000 Won
722,267,683 Shares
3,611,338 million won
(3) The Company issued 42,103,377 new shares in the stock exchange process with the shareholders of Woori
Card for the period from January 11, 2019, to December 31, 2019, which changed the total number of issued
shares from 680,164,306 as of the date of establishment to 722,267,683 as of December 31, 2020.
Issue date
Maturity
Interest rate (%)
December 31,
2020
December 31,
2019
Securities in
local currency
Securities in
local currency
Securities in
local currency
Securities in
local currency
Securities in
local currency
2019-07-18
2019-10-11
2020-02-06
2020-06-12
2020-10-23
-
-
-
-
-
Issuance cost
Total
3.49
3.32
3.34
3.23
3.00
500,000
500,000
500,000
500,000
400,000
300,000
200,000
(4,678)
1,895,322
-
-
-
(2,456)
997,544
The hybrid securities mentioned above do not have maturity date but are redeemable after 5 years from the date
of issuance.
(5) Accumulated other comprehensive income
Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):
Net gain (loss) on valuation of financial assets at
FVTOCI
Remeasurements of defined benefit plan
Total
For the year ended December 31, 2020
Beginning
balance
Increase
(decrease)
Income tax
effect
Ending
balance
-
(631)
(631)
(386)
(838)
(1,224)
106
231
337
(280)
(1,238)
(1,518)
For the period from January 11, 2019
(date of incorporation) to December 31, 2019
Remeasurements of defined benefit plan
(6) Regulatory Reserve for Credit Loss
Beginning
balance
-
Increase
(decrease)
(871)
Income tax
effect
Ending
balance
(631)
240
In accordance with Article 26 ~ 28 of the Financial holding company Supervision Regulations, the Company
calculates and discloses the regulatory reserve for credit loss.
1) Balance of the regulatory reserve for credit loss
Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):
Beginning balance
Planned provision of regulatory reserve for credit loss
Ending balance
December 31, 2020
692
394
1,086
December 31, 2019
-
692
692
168
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
2) Provision of regulatory reserve for credit loss, adjusted net income after the provision of regulatory
reserve and others
Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS after
the planned reserves provided are as follows (Unit: Korean Won in millions, except for EPS amount):
Net income before regulatory reserve
Provision of regulatory reserve for credit loss
Adjusted net income after the provision of
regulatory reserve
Dividends to hybrid securities
Adjusted net income after regulatory reserve and
dividends to hybrid securities
Adjusted EPS after regulatory reserve and
dividends to hybrid securities (Unit: Korean Won)
For the year ended
December 31, 2020
For the period from January 11,
2019 (date of incorporation)
to December 31, 2019
595,318
394
594,924
(48,915)
546,009
756
628,293
692
627,601
(4,363)
623,238
899
(7) Statements of appropriations of retained earnings are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2020
For the period from January 11, 2019
(date of incorporation) to December 31, 2019
Unappropriated retained earnings:
Unappropriated retained earnings carried
over from prior years
Dividend on hybrid equity securities
Net income
Appropriation of retained earnings:
Earned profit reserves
Regulatory reserve for credit loss
Cash dividend (dividend per share (%))
(2020: 360 won (7.2%))
(2019: 700 won (14.0%))
Unappropriated retained earnings to be carried
forward
54,821
(48,915)
595,318
601,224
59,540
394
260,016
319,950
281,274
-
(4,363)
628,293
623,930
62,830
692
505,587
569,109
54,821
The appropriation of retained earnings for the year ended December 31,2020, is expected to be appropriated at
the shareholders’ meeting on March 26, 2021. The appropriation date for the year ended December 31, 2019,
was March 25, 2020.
(8) Details of treasury stocks are as follows (Unit: Shares, Korean Won in millions):
December 31, 2020
Number of shares
Book value
2
-
-
2
December 31, 2019
Number of shares
-
2
-
2
-
-
-
-
Book value
-
-
-
-
Beginning
Repurchase
Retirement
Ending
19. DIVIDENDS
Dividends per share and the total dividends for the fiscal year ending December 31, 2019 were 700 won and
505,587 million won, respectively, approved at the regular general shareholders' meeting held on March 25,
2020.
Dividends per share and the total dividends for the fiscal year ending December 31, 2020 are 360 won and
260,016 million won, respectively. It will be proposed at the regular general shareholders' meeting scheduled on
March 26, 2021. The financial statements of the current term do not include such outstanding dividends.
20. NET INTEREST INCOME
(1) Interest income recognized is as follows (Unit: Korean Won in millions):
Interest on due from banks
Other interest income
Total
For the year ended
December 31, 2020
For the period from January 11,
2019 (date of incorporation)
to December 31, 2019
10,054
28
10,082
7,723
18
7,741
(2) Details of interest expense recognized are as follows (Unit: Korean Won in millions):
Interest on borrowings
Interest on debentures
Other interest expense
Interest on lease liabilities
Total
For the year ended
December 31, 2020
For the period from January 11,
2019 (date of incorporation)
to December 31, 2019
-
22,992
14
29
23,035
495
7,149
12
45
7,701
21. NET FEES AND COMMISSIONS INCOME
(1) Details of fees and commissions income incurred are as follows (Unit: Korean Won in millions):
For the year ended
December 31, 2020
For the period from January 11,
2019 (date of incorporation)
to December 31, 2019
Fees and commissions income
805
-
(2) Details of fees and commissions expense incurred are as follows (Unit: Korean Won in millions):
For the year ended
December 31, 2020
For the period from January 11,
2019 (date of incorporation)
to December 31, 2019
8,858
7,341
16,199
8,202
7,631
15,833
Fees and commissions paid
Others
Total
22. DIVIDEND INCOME
Details of dividend income recognized are as follows (Unit: Korean Won in millions):
Dividend income recognized from
investments in subsidiaries
Dividend income recognized from
FVTOCI
Total
For the year ended
December 31, 2020
For the period from January 11,
2019 (date of incorporation)
to December 31, 2019
677,795
2,580
680,375
676,000
-
676,000
170
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
23. NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FVTPL
25. GENERAL AND ADMINISTRATIVE EXPENSES
(1) Details of gain or loss related to net gain or loss on financial instruments at FVTPL are as follows (Unit:
(1) Details of general and administrative expenses recognized are as follows (Unit: Korean Won in millions):
Korean Won in millions):
Gains and losses on financial
instruments at fair value through
profit or loss mandatorily measured at
fair value
For the year ended
December 31, 2020
For the period from January 11,
2019 (date of incorporation)
to December 31, 2019
(920)
9,434
(2) Details of net gain or loss on financial instrument at FVTPL are as follows (Unit: Korean Won in millions):
Derivatives
Equity forward Gain on
(for trading)
transactions and
valuation
Loss on
transactions and
valuation
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
1,266
(2,186)
(920)
9,434
-
9,434
24. REVERSAL(PROVISION) FOR IMPAIRMENT LOSSES DUE TO CREDIT LOSS
Details of reversal(provision) for impairment losses due to credit loss recognized are as follows (Unit: Korean
Won in millions):
Reversal(Provision) for impairment losses
due to credit loss on loans and other
financial assets at amortized cost
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
116
(263)
Employee
benefits
Short-term
employee
benefits
Salaries
Employee fringe
benefits
Retirement benefit service costs
Share based payments
Sub-total
Depreciation and amortization
Other general and
administrative
expenses
Rent
Taxes and public dues
Service charges
Computer and IT related
Telephone and communication
Operating promotion
Advertising
Printing
Traveling
Supplies
Insurance premium
Reimbursement
Vehicle maintenance
Others
Sub-total
Total
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
26,533
8,090
3,499
1,557
39,679
5,449
1,120
375
3,127
2,937
642
1,190
186
51
54
196
212
980
220
54
11,344
56,472
16,706
5,340
4,899
819
27,764
4,098
714
375
2,290
1,654
482
645
65
76
373
131
280
847
129
18
8,079
39,941
172
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(2) Share-based payment
26. NON-OPERATING INCOME (EXPENSES)
Details of performance condition share-based payment granted to executives as of December 31, 2020 and 2019
are as follows.
1) Performance condition share-based payment
Subject to
Type of payment
Vesting period
Date of payment
Fair value (*1)
Valuation method
Expected dividend rate
Expected maturity date
Number of shares remaining As of December 31, 2020
As of December 31, 2019
As of December 31, 2020
As of December 31, 2019
Number of shares granted
(*2)
Subject to
Type of payment
Vesting period
Date of payment
Fair value (*1)
Valuation method
Expected dividend rate
Expected maturity date
Number of shares remaining
Number of shares granted
(*2)
As of December 31, 2020
As of December 31, 2019
As of December 31, 2020
As of December 31, 2019
Shares granted for the year 2019
Cash-settled
January 11, 2019 ~ December 31, 2022
2023-01-01
9,162 Won
Black-Scholes Model
4.13%
2 years
77,728 shares
77,728 shares
77,728 shares
77,728 shares
Shares granted for the year 2020
Cash-settled
January 1, 2020 ~ December 31, 2023
2024-01-01
8,792 Won
Black-Scholes Model
4.13%
3 years
189,270 shares
-
189,270 shares
-
(1) Details of non-operating income and expenses recognized are as follows (Unit: Korean Won in millions):
Other non-operating income
Other non-operating expense
Total
For the year ended
December 31, 2020
185
(400)
(215)
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
(2) Details of other non-operating income recognized are as follows (Unit: Korean Won in millions):
Others
For the year ended
December 31, 2020
185
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
(3) Details of other non-operating expenses recognized are as follows (Unit: Korean Won in millions):
Donations
For the year ended
December 31, 2020
400
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
5
(755)
(750)
5
755
(*1) As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock price
of transactions in the past one week, the past one month, and the past two months) at the date of payment, the fair value
is calculated and used to measure the liability according to the Black Shawls model based on the base price at the time
of each settlement.
(*2) The number of payable stocks is granted at the initial contract date and the payment rate is determined based on the
achievement of the pre-determined performance targets. Performance is evaluated as long-term performance indication
including relative shareholder return, net income, return on equity (ROE), non-performing loan ratio and job performance.
2) The Company accounts for performance condition share-based payments according to the cash-settled
method and the fair value of the liabilities is reflected in the compensation costs by re-measuring every
closing period. As of December 31, 2020 and December 31, 2019 the book value of the liabilities related
to the performance condition share-based payments recognized by the Company is 2,376 million won
and 819 million won.
174
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
27. INCOME TAX EXPENSE (INCOME)
(1) Details of income tax expense (income) are as follows (Unit: Korean Won in millions):
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
Current tax expense:
Current tax expense with respect to the current period
Sub-total
Deferred tax expense (income)
Change in deferred tax assets (liabilities) due to temporary
differences
Income tax expense directly attributable to equity
Income tax expense (income)
Sub-total
-
-
(1,118)
337
(781)
(781)
-
-
154
240
394
394
(2) The relationship between income before income tax expense deduction and income tax expense in the
current comprehensive income statement is as follows (Unit: Korean Won in millions):
Net income before income tax expense
Tax calculated at statutory tax rate (*1)
Adjustments:
Effects of income that is exempt from
taxation
Effect of expenses that are not deductible in
determining taxable profit
Effect of corporate tax due to consolidate tax
plans
Others
Sub-total
Income tax expense (income)
Effective tax rate (*2)
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
594,537
153,136
(178,635)
420
24,370
(72)
(153,917)
(781)
-
628,687
165,527
(179,186)
1,190
15,839
24
(162,133)
394
0.1%
(*1) The corporate tax rate is 11% up to 200 million won in tax basis, 22% over 200 million won to 20 billion Won, 24.2%
over 20 billion Won to 300 billion Won and 27.5% over 300 billion Won.
(*2) It is tax income for the year ended December 31, 2020, so the annual effective tax rate was not calculated.
(3) Details of changes in deferred income tax assets and liabilities are as follows (Unit: Korean Won in
millions):
For the year ended December 31, 2020
Beginning balance
Recognized as
income (expense)
Recognized as other
comprehensive
income (expense)
Ending Balance
-
(2,594)
72
1,622
(729)
165
225
1,085
(154)
-
601
(32)
(59)
(836)
50
428
629
781
106
-
-
207
24
-
-
-
337
106
(1,993)
40
1,770
(1,541)
215
653
1,714
964
For the period from January 11, 2019
(date of incorporation) to December 31, 2019
Recognized as other
comprehensive
income (expense)
Recognized as
income (expense)
Ending Balance
Beginning balance
-
-
-
-
-
-
-
-
(2,594)
72
1,389
(736)
165
225
1,085
(394)
-
-
233
7
-
-
-
240
(2,594)
72
1,622
(729)
165
225
1,085
(154)
Gain (loss) related to
securities
Gain (loss) on valuation
of derivatives
Provision for loan losses
Defined benefit liability
Deposits with employee
retirement insurance
trust
Provisions
Share based payment
Others
Net deferred tax
assets(liabilities) in
total
Gain (loss) on valuation
of derivatives
Provision for loan losses
Defined benefit liability
Deposits with employee
retirement insurance
trust
Provisions
Share based payment
Others
Net deferred tax
assets(liabilities) in
total
176
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(4) Unrealizable temporary differences are as follows (Unit: Korean Won in millions):
(2) The weighted average number of common shares outstanding is as follows: (Unit: number of shares, days)
Deductible temporary differences
Taxable temporary differences
Total
For the year ended
December 31, 2020
4,474
(7,917,618)
(7,913,144)
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
3,222
(7,916,351)
(7,913,129)
No deferred income tax asset has been recognized for the deductible temporary difference of 4,474 million won
associated with investments in subsidiaries as of December 31, 2020, because it is not probable that the
temporary differences will be reversed in the foreseeable future.
No deferred income tax liability has been recognized for the taxable temporary difference of 7,917,618 million
won associated with investment in subsidiaries as of December 31, 2020, due to the following reasons:
-
-
The Company is able to control the temporary difference of extinguishment.
It is probable that the temporary difference will not be reversed in the foreseeable future.
(5) Details of accumulated deferred tax charged directly to other equity are as follows (Unit: Korean Won in
millions):
Net gain (loss) on valuation of financial assets at
FVTOCI
Remeasurements of defined benefit plan
Total
December 31, 2020
December 31, 2019
106
471
577
-
240
240
(6) Current tax assets and liabilities are as follows (Unit: Korean Won in millions)
Current tax assets
Current tax liabilities
December 31, 2019
December 31, 2019
307
215,071
-
133,526
28. EARNINGS PER SHARE (“EPS”)
(1) Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average
number of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of
shares):
Net income attributable to Owners
Dividends to hybrid securities
Net income attributable to common shareholders
Weighted average number of common shares
outstanding (Unit: million shares)
Basic EPS (Unit: Korean Won)
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
595,318
(48,915)
546,403
722
757
628,293
(4,363)
623,930
694
900
For the year ended December 31, 2020
Number of
shares
Dates
Accumulated number of
shares outstanding during
period
Period
Common shares issued at the
beginning of the period
Treasury stock
2020-01-01 ~ 2020-12-31
2020-01-01 ~ 2020-12-31
722,267,683
(2)
366
366
Sub-total (①)
Weighted average number of common shares outstanding (②=(①/366)
264,349,971,978
(732)
264,349,971,246
722,267,681
For the period from January 11, 2019 (date of incorporation)
to December 31, 2019
Period
Number of
shares
Dates
Accumulated number of
shares outstanding during
period
2019-01-11 ~ 2019-12-31
680,164,306
355
241,458,328,630
Common shares issued at the
beginning date of
incorporation of the period
Stock issuance
(Comprehensive stock
exchange)
Purchase of treasury stock
Purchase of treasury stock
2019-09-10 ~ 2019-12-31
2019-08-26 ~ 2019-12-31
2019-12-13 ~ 2019-12-31
42,103,377
(1)
(1)
113
128
19
Sub-total (①)
Weighted average number of common shares outstanding (②=(①/355)
4,757,681,601
(128)
(19)
246,216,010,084
693,566,226
Diluted EPS is equal to basic EPS because there is no dilution effect for the year ended December 31, 2020 and
for the period from January 11, 2019 (date of incorporation) to December 31, 2019.
29. CONTINGENT LIABILITIES AND COMMITMENTS
(1) Litigation case
As of December 31, 2020 and December 31, 2019, the Company has no litigation case in progress.
(2) Details of loan commitments with financial institutions are as follows (Unit: Korean Won in millions):
December 31, 2020
December 31, 2019
Loans
Financial institutions Line of credit Loan balance Line of credit Loan balance
Standard Chartered
Bank Korea Ltd.
Kookmin Bank
Total
65,000
35,000
100,000
-
-
-
65,000
35,000
100,000
-
-
-
(3) The Company decided to enter into a stock sales agreement with a major shareholder of Woori Asset Trust
Co., Ltd (formerly Kukje Asset Trust Co., Ltd) to acquire 44.5% interest (58.6% of voting rights) during
July, 2019, and to acquire additional 21.3% interest (28.0% of voting rights) after a certain period. As a
result, the Company acquired the interest of the first sales agreement in December 2019 and is planning to
acquire the interest of the second sales agreement after a certain period.
In regards to this acquisition, the Company recognized 7,247 million won and 9,434 million won as
derivative assets as of December 31, 2020 and December 31, 2019 (seeing Note 17).
178
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
30. RELATED PARTY TRANSACTIONS
(2) Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):
Related parties of the Company as of December 31, 2020 and December 31, 2019, and assets and liabilities
recognized, guarantees and commitments, major transactions with related parties and compensation to key
management for the year ended December 31, 2020 and for the period from January 11, 2019 (date of
incorporation) to December 31, 2019 are as follows:
(1) Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):
Related party
Title of account
December 31, 2020
December 31, 2019
Subsidiaries
Woori Bank
Woori Card Co., Ltd.
Woori FIS Co., Ltd.
Woori Finance Research
Institute Co., Ltd.
Cash and cash equivalents
Other financial assets
Allowance for credit losses
Other financial liabilities
Other financial assets
Other financial liabilities
Other financial assets
Other financial liabilities
Other financial assets
Other financial liabilities
Woori Credit
Information Co., Ltd.
Other financial assets
Woori Fund Service
Co., Ltd.
Associates of subsidiaries
W Service Networks Co., Ltd.
Other financial assets
Other financial liabilities
69,176
598,505
(147)
7,718
17,983
299
1,538
259
37
1,465
517
643
122
43,670
1,229,181
(263)
601
37,754
267
1,386
190
21
1,320
568
556
64
Related party
Title of account
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
Subsidiaries (*1)
Woori Bank
Interest income
Fees and commissions
income
Dividend income
Interest expenses (*2)
Fees and commissions
expense
Reversal(Provision) of
impairment loss due to
credit loss
General and administrative
expenses (*2)
Woori Card Co., Ltd.
Dividend income
Woori FIS Co., Ltd.
General and administrative
expenses
Woori Finance Research
Fees and commissions
Institute Co., Ltd.
expenses
Woori Credit Information Co.,
Ltd.
Dividend income
Woori Fund Service
Co., Ltd.
Woori Asset Trust Co., Ltd
Associates of subsidiaries
W Service Networks Co., Ltd.
Dividend income
Dividend income
General and administrative
expenses
10,082
805
676,000
17
13
116
3,403
2,580
2,670
6,190
494
521
780
7,741
-
676,000
35
4
(262)
2,365
-
1,492
5,400
-
-
-
1,347
775
(*1) The Company issued debentures of 200,000 million won during the period, of which 40,000 million won was
underwritten by Woori Investment Bank and paid 40 million won as acquisition fee which is included in the discount
on debentures issued. In addition, 29,000 million won out of 200,000 million won in hybrid securities issued during the
current term was acquired by Woori Investment Bank and paid 44 million won as acquisition fees, which is included in
the cost of issuing hybrid securities.
(*2) The depreciation of right-of-use assets and interest expense of lease liabilities arising from lease transactions during the
current term are included.
(3) The details of the right-of-use assets and lease liabilities due to lease transactions with related parties as of
December 31, 2020 and December 31, 2019 are as follows (Unit: Korea Won in millions):
Related parties
Subsidiaries
Woori Bank
Title of account
December 31, 2020
Right-of-use assets
Lease liabilities (*)
December 31, 2019
1,436
1,164
4,936
4,920
180
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181
(*) Cash outflows of lease liabilities redemption for the year ended December 31, 2020 and for the period from January 11,
2019 (date of incorporation) to December 31, 2019 are 1,817 million won and 1,115 million won, respectively.
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(4) The details of loan and borrowing transactions with related parties for the year ended December 31, 2020
and for the period from January 11, 2019 (date of incorporation) to December 31, 2019 are as follows (Unit:
Korea Won in millions):
Related parties (*1)
Subsidiaries
Woori Bank
Title of
account
Due from
banks (*2)
For the year ended December 31, 2020
Beginning
balance
Increase
Decrease
Ending
balance
1,130,000
3,800,000
4,480,000
450,000
(*1) Woori Investment Bank acquired 40,000 million won out of 200,000 million won in non-guaranteed bonds issued
during the year ended December 31, 2020 and sold the entire amount to the market on the date of issuance. Of the
200,000 million won in hybrid securities issued during the current term, 29,000 million won was acquired by Woori
Investment Bank and sold all to the market on the date of issuance.
(*2) Excludes due from banks without withdrawal limitations.
Related parties
Subsidiaries
Woori Bank
Title of
account
Due from
banks (*)
(*) Excludes due from banks without withdrawal limitations.
For the period from January 11, 2019
(date of incorporation) to December 31, 2019
Beginning
balance
Increase
Decrease
Ending
balance
-
2,730,000
1,600,000
1,130,000
(5) The details of equity-related transactions with related parties are as follows (Unit: Korean Won in million)
For the year ended December 31, 2020
Related parties
Subsidiaries Woori Bank
Woori Card Co., Ltd.
Woori Investment
Bank Co., Ltd.
Associates Well to Sea No. 3
Private Equity
Fund
Contribution
1,000,000
-
54,878
-
Designated to
preferred buyers of
Woori Financial
Capital Co., Ltd.
(formerly Aju
Capital Co., Ltd.)
60,158
-
Consideration of
the acquisition of
Woori Financial
Capital Co., Ltd.
(formerly Aju
Capital Co., Ltd.)
-
-
-
-
-
572,333
Acquisition of
hybrid
securities
-
150,000
-
-
(6) There are no guarantees provided to the related parties. The unused commitments provided from the related
parties are as follows (Unit: Korean Won in millions):
Related parties
December 31, 2020
December 31, 2019
Warranty
Subsidiaries
Woori Card Co.,
Unused loan commitment
Ltd.
131
495
(7) Compensation for key management is as follows (Unit: Korean Won in millions):
Short-term employee salaries
Retirement benefit service costs
Share-based compensation
Total
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
6,259
230
1,205
7,694
3,863
419
529
4,631
Key management includes registered executives and non-registered executives. The Company has not
recognized any outstanding assets, allowance and related impairment loss due to credit losses from transaction
with key management as of December 31, 2020 and December 31, 2019. Liabilities related to key management
compensation are 4,209 million won and 1,805 million won as of December 31, 2020 and December 31, 2019,
respectively.
31. LEASES
(1) The future lease payments under the lease contracts are as follows (Unit: Korean Won in millions):
Lease payments:
Within one year
After one year but within five years
Total
December 31, 2020
December 31, 2019
2,836
2,768
5,604
1,341
249
1,590
(2) Total cash outflows from lease are as follows (Unit: Korean Won in millions):
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
Cash outflows from lease
2,335
1,289
(3) Details of lease payments that are not included in the measurement of lease liabilities due to the fact that they
are leases for which the underlying asset is of low value are as follows (Unit: Korean Won in millions):
For the year ended
December 31, 2020
For the period from
January 11, 2019
(date of incorporation)
to December 31, 2019
Lease payments for which the underlying
asset is of low value
132
95
There are no lease payments not included in the lease liabilities measurement, resulting from short-term leases
for the year ended December 31, 2020 and for the period from January 11, 2019 (date of incorporation) to
December 31, 2019.
32. EVENTS AFTER THE REPORTING PERIOD
On March 5, 2021, the Company entered into a stock sale agreement to acquire 100% interests of Woori Savings
Bank (common stock 12,160,398 shares) from one of the subsidiaries, Woori Financial Capital Co., Ltd.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
REPORT ON INDEPENDENT AUDITOR’S
AUDIT OF INTERNAL CONTROL OVER FINANCIAL REPORTING
(English Translation of a Report Originally Issued in Korean)
To the Board of Directors and Shareholders of Woori Financial Group Inc.
Definition and Inherent Limitations of Internal Control over Financial Reporting
Opinion on Internal Control over Financial Reporting
We have audited Woori Financial Group Inc.(the Company)’s Internal Control over Financial Reporting as at December 31, 2020, based on Conceptual
Framework for Designing and Operating Internal Control over Financial Reporting.
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as at December 31, 2020, based on
Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.
We also have audited, in accordance with Korean Standards on Auditing, the separate financial statements of the Company, which comprise the
separate statement of financial position as at December 31, 2020, and the separate statement of comprehensive income, separate statement of
changes in equity and separate statement of cash flow for the year then ended, and notes to the separate financial statements including a summary of
significant accounting policies, and our report dated March 12, 2021 expressed unqualified opinion.
Basis for Opinion on Internal Control over Financial Reporting
We conducted our audit in accordance with Korean Standards on Auditing. Our responsibility under these standards are further described in the
Auditor’s Responsibilities for the Audit of Internal Control over Financial Reporting section of our report. We are independent of the Company in
accordance with the ethical requirements of the Republic of Korea that are relevant to our audit of internal control over financial reporting and we have
fulfilled our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Responsibilities of Management and Those Charged with Governance for Internal Control over Financial Reporting
Management is responsible for designing, implementing and maintaining effective internal control over financial reporting, and for its assessment
about the effectiveness of internal control over financial reporting, included in the accompanying Operating Status Report of Internal Control over
Financial Reporting.
Those charged with governance have the responsibilities for overseeing internal control over financial reporting.
Auditor’s Responsibilities for the Audit of Internal Control over Financial Reporting
Our responsibility is to express opinion on the Company’s internal control over financial reporting based on our audit. We conducted the audit in
accordance with Korean Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether effective internal control over financial reporting was maintained in all material respects.
An audit of internal control over financial reporting involves performing procedures to obtain audit evidence about whether a material weakness exists.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks that a material weakness exists. An audit includes
obtaining an understanding of internal control over financial reporting and testing and evaluating the design and operating effectiveness of internal
control over financial reporting based on the assessed risk.
An entity’s internal control over financial reporting is a process effected by those charged with governance, management, and other personnel,
designed to provide reasonable assurance regarding the preparation of reliable financial statements in accordance with International Financial
Reporting Standards as adopted by the Republic of Korea. An entity’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of
the entity; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with International Financial Reporting Standards as adopted by the Republic of Korea, and that receipts and expenditures of the entity are being
made only in accordance with authorizations of management and those charged with governance; and (3) provide reasonable assurance regarding
prevention, or timely detection and correction of unauthorized acquisition, use, or disposition of the entity’s assets that could have a material effect on
the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and correct, misstatements. Also, projections of
any assessment of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
The engagement partner on the audit resulting in this independent auditor’s report is Sung-Jae Lim, Certified Public Accountant.
Samil Pricewaterhouse Coopers
Seoul, Korea
March 12, 2021
This report is effective as of March 12, 2021, the audit report date. Certain subsequent events or circumstances, which may occur between the
audit report date and the time of reading this report, could have a material impact on the Company’s internal control over financial reporting thereto.
Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect
the impact of such subsequent events or circumstances, if any.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 OPERATING STATUS REPORT OF
INTERNAL CONTROL OVER FINANCIAL REPORTING
INDEPENDENT AUDITOR’S REPORT
(English Translation of a Report Originally Issued in Korean)
To the Board of Directors and Audit Committee of Woori Financial Group Inc.
To the Board of Directors and Shareholders of Woori Financial Group Inc.
We, as the Chief Executive Officer (“CEO”) and Internal Control over Financial Reporting(“ICFR”) Officer of Woori Financial Group Inc. (the “Company”),
assessed operating status of the Company’s Internal Control over Financial Reporting for the year ended December 31, 2020.
The Company’s management, including ourselves, is responsible for designing and operating ICFR.
We assessed whether the Company effectively designed and operated its ICFR to prevent and detect errors or frauds which may cause a
misstatement in financial statements to ensure preparation and disclosure of reliable financial information.
We used the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’ established by the Operating Committee
of Internal Control over Financial Reporting in Korea (the “ICFR Committee”) as the criteria for design and operation of the Company’s ICFR. We also
conducted an assessment of ICFR based on the ‘Management Guideline for Evaluating and Reporting Effectiveness of Internal Control over Financial
Reporting’ established by the ICFR Committee.
Based on our assessment, we concluded that the Company’s ICFR is designed and operated effectively as of December 31, 2020, in all material
respects, in accordance with the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’.
We certify that this report does not contain any untrue statement of a fact, or omit to state a fact necessary to be presented herein. We also certify that
this report does not contain or present any statements which might cause material misunderstandings, and we have reviewed and verified this report
with sufficient care.
February 25, 2021
Tae Seung Sohn, Chief Executive Officer
Sung Wook Lee, Internal Control over Financial Reporting Officer
Opinion
We have audited the accompanying consolidated financial statements of Woori Financial Group Inc. and its subsidiaries (collectively referred to as the
“Group”), which comprise the consolidated statement of financial position as at December 31, 2020, and the consolidated statement of comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated
financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the
Group as at December 31, 2020, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance
with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS).
Basis for Opinion
We conducted our audit in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance
with the ethical requirements of the Republic of Korea that are relevant to our audit of the consolidated financial statements and we have fulfilled
our other ethical responsibilities in accordance with the ethical requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Key Audit Matter
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements
of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Expected Credit Losses on Loans Measured at Amortized Cost
Why it is determined to be a key audit matter:
The impairment guidance under Korean IFRS 1109 Financial Instruments requires determination of significant increases in credit risk and
measurement of expected credit losses using forward-looking information and others. Accordingly, the Group developed a measurement model that
encompasses probability of default, loss given default and forward looking information utilizing various types of information, which requires a higher
level of management’s interpretation and judgment.
The Group measures expected credit losses on loans measured at amortized cost based on both individual and collective assessments. Individual
assessment of expected credit losses is performed based on estimation of future forecast cash flow with a relatively high degree of management’s
estimation and judgment, and collective assessment of expected credit losses involves a variety of complex variables and assumptions that require
management’s estimation and judgment. Due to these facts, expected credit losses of loans measured at amortized costs are determined as a key
audit matter. In addition, the Group considered that loans subject to payment deferral or interest deferral under the government’s COVID-19 relief
package posed significantly higher credit risks leading to its assessment of more likelihood of default. Such estimation on expected credit losses
involved higher degree of judgment.
As described in Note 10, loans measured at amortized cost subject to individual or collective assessments amount to 304,702,706 million won, with
allowances for credit losses of 1,908,524 million won as of December 31, 2020. Significantly affected subsidiary is Woori Bank.
How our audit addressed the key audit matter:
(1) Assessment of expected credit losses on an individual basis
We obtained an understanding and evaluated the processes and controls relating to the assessment of expected credit losses on an individual basis.
In particular, we focused our effort on the assumptions used in estimating future cash flows. We evaluated whether management’s estimation was
reasonable and we assessed the key assumptions in the cash flow projection including growth rate of entities subject to individual assessment and
collateral valuation. As part of these procedures, we assessed whether sales growth rate, operating income ratio, and assumptions on investment
activities were consistent with historical operating performance and current market conditions. Additionally, we assessed the appropriateness
of collateral valuation by conducting our own research on recent property prices and engaged independent appraisal specialists in assessing
reasonableness of appraisal reports, models and methodologies used by management.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 (2) Assessment of expected credit losses on a collective basis
We obtained an understanding and evaluated the processes and controls relating to management’s calculation of expected credit losses on a
collective basis in accordance with impairment requirements under Korean IFRS 1109 Financial Instruments. As explained in Note 2, management
assessed credit ratings to recognize lifetime expected credit losses on loans with significant increase in credit risk and impaired loans. Other than
these cases, management recognized 12-months of expected credit losses. To calculate expected credit losses, management applied forward-looking
information, probability of default and loss given default estimated through its internal procedures and controls implemented for various assumptions.
We assessed the design and operating effectiveness of controls relating to credit ratings that reasonably reflected both qualitative and quantitative
information. Our testing over the accuracy and reliability of the information included agreeing qualitative and quantitative information with relevant
evidence.
As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
We reviewed the appropriateness of management policies and procedures to determine significant increases in credit risk, and tested reasonableness
of expected credit loss model applied by each of the three stages(Stage 1, 2 and 3) depending on how significantly credit risk was increased.
management.
We used risk specialists to test the appropriateness of management’s methodologies of reflecting forward-looking information in the estimation of
expected credit loss by adjusting the probability of default and loss given default after statistically analyzing the correlation between forward-looking
information and probability of default or loss given default. Moreover, we tested the reasonableness and mathematical accuracy of the result through
recalculation and examination of supporting data.
We reviewed the methodologies used by management to verify that probability of default and loss given default were calibrated using sufficient and
reasonable historical data. We determined that the default and loss data used were appropriately gathered and applied in accordance with internal
control procedures. In addition, we tested reasonableness and accuracy of probability of default and loss given default through procedures including
recalculation, and tested management’s default and loss data by agreeing them with relevant evidence.
Furthermore, we tested reasonableness of stage allocation of loans subject to COVID-19 payment relief attributable to significant increase in credit
risk. We also tested key assumptions used in calculation of probability of default and required disclosures. We verified accuracy and completeness of
aggregation of loans subject to the deferral, and accuracy of calculation of loss allowances.
Emphasis of Matter
Without modifying our opinion, we draw attention to Note 3 of the financial statements, which indicates that the outbreak of COVID-19 in 2020 may
have a negative impact on the Group’s financial condition and results of operations.
Other Matters
The consolidated financial statements of the Group for the year ended December 31, 2019, were audited by Deloitte Anjin LLC auditor who expressed
an unqualified opinion on those statements on March 16, 2020.
Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such
consolidated financial statements may differ from those generally accepted and applied in other countries.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Korean IFRS, and
for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to
liquidate the Group or to cease operations.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an
opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of
the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Sung-jae Lim, Certified Public Accountant.
Samil Pricewaterhouse Coopers Seoul, Korea
March 12, 2021
This report is effective as of March 12, 2021, the audit report date. Certain subsequent events or circumstances, which may occur between the
audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and
notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be
revised to reflect the impact of such subsequent events or circumstances, if any.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2020 AND 2019
AS OF DECEMBER 31, 2020 AND 2019
Cash and cash equivalents (Note 6)
Financial assets at fair value through profit or loss (“FVTPL”)
(Notes 4, 7, 11, 12, 18 and 26)
ASSETS
Financial assets at fair value through other comprehensive income (“FVTOCI”)
(Notes 4, 8, 11, 12, and 18)
Securities at amortized cost (Notes 4, 9, 11, 12 and 18)
Loans and other financial assets at amortized cost (Notes 4, 10, 11, 12, 18 and 41)
Investments in joint ventures and associates (Note 13)
Investment properties (Note 14 and 18)
Premises and equipment (Notes 15 and 18)
Intangible assets (Note 16)
Assets held for sale (Note 17)
Net defined benefit asset (Note 24)
Current tax assets (Note 38)
Deferred tax assets (Note 38)
Derivative assets (Designated for hedging) (Notes 4,11,12 and 26)
Other assets (Notes 19 and 41)
Total assets
LIABILITIES
Financial liabilities at fair value through profit or loss (“FVTPL”)
(Notes 4, 11, 12, 20 and 26)
Deposits due to customers (Notes 4,11,21 and 41)
Borrowings (Notes 4, 11, 12 and 22)
Debentures (Notes 4, 11 and 22)
Provisions (Notes 23, 40 and 41)
Net defined benefit liability (Note 24)
Current tax liabilities (Note 38)
Deferred tax liabilities (Note 38)
Derivative liabilities (Designated for hedging) (Notes 4,11,12 and 26)
Other financial liabilities (Notes 4,11,12, 25 and 41)
Other liabilities (Notes 25 and 41)
Total liabilities
EQUITY
Owners’ equity (Note 28)
Capital stock
Hybrid securities
Capital surplus
Other equity
Retained earnings
Non-controlling interests
Total equity
Total liabilities and equity
December 31,
2020
December 31,
2019
(Korean Won in millions)
9,990,983
6,392,566
14,762,941
8,069,144
30,028,929
17,020,839
320,106,078
993,291
387,464
3,287,198
792,077
60,002
5,658
75,655
46,088
174,820
1,348,994
399,081,017
6,813,822
291,477,279
20,745,466
37,479,358
501,643
52,237
370,718
160,250
64,769
14,215,817
473,813
372,355,172
3,611,338
1,895,366
626,111
(2,347,472)
19,268,265
23,053,608
3,672,237
26,725,845
399,081,017
27,730,531
20,320,539
293,717,693
806,360
280,239
3,364,716
844,110
10,556
2,582
47,367
39,544
121,131
233,646
361,980,724
2,958,302
264,685,578
18,998,920
30,858,055
443,980
92,470
182,690
134,322
6,837
17,706,767
420,471
336,488,392
3,611,338
997,544
626,295
(2,249,322)
18,524,515
21,510,370
3,981,962
25,492,332
361,980,724
WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
Interest income
Financial assets at FVTPL
Financial assets at FVTOCI
Financial assets at amortized cost
Interest expense
Net interest income (Notes 11, 30 and 41)
Fees and commissions income
Fees and commissions expense
Net fees and commissions income (Notes 11, 31 and 41)
Dividend income (Notes 11, 32 and 41)
Net gain on financial instruments at FVTPL (Notes 11, 33 and 41)
Net gain on financial assets at FVTOCI (Notes 11 and 34)
Net gain arising on financial assets at amortized cost (Note 11)
Impairment losses due to credit loss (Notes 35 and 41)
General and administrative expense (Notes 36 and 41)
Other net operating expense (Notes 11, 26, 36 and 41)
Operating income
Share of gain of joint ventures and associates (Note 13)
Other non-operating expense
Non-operating expense (Note 37)
Net income before income tax expense
Income tax expense (Note 38)
Net income
Net gain(loss) on valuation of equity securities at FVTOCI
Changes in capital due to equity method
Remeasurement gain(loss) related to defined benefit plan
Items that will not be reclassified to profit or loss:
Net gain on valuation of debt securities at FVTOCI
Changes in capital due to equity method
Net gain(loss) on foreign currency translation of foreign operations
Net gain(loss) on valuation of cash flow hedge
Items that may be reclassified to profit or loss:
2020
2019
(Korean Won in millions)
9,523,853
48,612
437,527
9,037,714
(3,525,341)
5,998,512
1,694,016
(679,977)
1,014,039
138,543
421,709
24,138
44,443
(784,371)
(3,956,181)
(820,438)
2,080,394
101,077
(180,220)
(79,143)
10,576,770
50,619
474,751
10,051,400
(4,683,064)
5,893,706
1,709,326
(606,698)
1,102,628
107,959
25,455
11,015
102,115
(374,244)
(3,766,077)
(302,581)
2,799,976
83,997
(160,924)
(76,927)
2,001,251
2,723,049
(486,002)
(685,453)
1,515,249
2,037,596
47,246
(2,065)
9,783
54,964
12,114
(233)
(153,472)
4,420
(137,171)
(58,129)
-
(34,648)
(92,777)
43,988
613
101,781
(1,823)
144,559
Other comprehensive income (loss), net of tax
(82,207)
51,782
The accompanying notes are part of this consolidated financial statements.
Total comprehensive income
1,433,042
2,089,378
(Continued)
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (CONTINUED)
WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
Net income attributable to:
Net income attributable to owners
Net income attributable to non-controlling interests
Total comprehensive income attributable to:
Comprehensive income attributable to owners
Comprehensive income attributable to non-controlling interests
2020
2019
(Korean Won in millions)
1,515,249
1,307,266
207,983
1,433,042
1,233,097
199,945
2,037,596
1,872,207
165,389
2,089,378
1,914,393
174,985
Earnings per share (Note 39)
Basic and diluted earnings per share (Unit: In Korean Won)
1,742
2,727
The accompanying notes are part of this consolidated financial statements.
January 1, 2019
Total comprehensive income
Net income
Net loss on valuation of financial
instruments at FVTOCI
Net gain(loss) due to disposal of equity
securities at FVTOCI
Changes in capital due to equity method
Gain on foreign currency translation of
foreign operations
Loss on valuation of cash flow hedge
Remeasurement loss related to defined
benefit plan
Transactions with owners
Dividends to common stocks
Acquisition of subsidiaries
New stocks issue cost
Net increase of treasury stocks
Issuance of hybrid securities
Dividends to hybrid securities
Redemption of hybrid securities
Exchange of non-controlling interests in
hybrid securities
Changes in subsidiaries’ capital
Appropriation of retained earnings
Other changes in consolidated capital
December 31, 2019
January 1, 2020
Total comprehensive income
Net income
Net gain(loss) on valuation of financial
instruments at FVTOCI
Net gain(loss) due to disposal of equity
securities at FVTOCI
Changes in capital due to equity method
Gain on foreign currency translation of
foreign operations
Gain on valuation of cash flow hedge
Remeasurement gain related to defined
benefit plan
Transactions with owners
Dividends to common stocks
Issuance of hybrid securities
Dividends to hybrid securities
Redemption of hybrid securities
Changes in subsidiaries’ capital
Changes in non-controlling interests
related to business combination
December 31, 2020
Capital
Stock
Hybrid
securities
Capital
surplus
3,381,392
3,161,963
285,889
Retained
earnings
Other
equity
(Korean Won in millions)
(2,213,970)
Owners’
equity in
total
Non-
controlling
interests
Total
equity
17,124,657 21,739,931
213,113
21,953,044
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,153
-
-
-
-
1,872,207
1,872,207
165,389
2,037,596
(14,101)
-
(14,101)
(40)
(14,141)
29,368
613
91,748
(1,823)
(34,251)
(29,368)
-
-
1,766
-
-
-
1,766
-
-
-
91,748
(1,823)
10,033
-
101,781
(1,823)
(34,251)
(397)
(34,648)
-
229,946
-
-
-
-
-
-
-
-
-
997,544
-
-
-
351,663
(12,848)
-
-
-
-
-
-
-
4,245
-
-
(277)
(437,626)
-
-
-
-
(4,362)
-
(437,626)
581,609
(12,848)
4,245
997,544
(4,362)
(277)
(2,014)
69,534
-
-
658,470
(134,421)
(159,618)
(439,640)
651,143
(12,848)
4,245
1,656,014
(138,783)
(159,895)
- (3,161,963)
-
-
-
-
-
-
997,544
3,611,338
-
438
-
-
626,295
-
-
368
(111,242)
(2,249,322)
- (3,161,963)
438
-
(368)
-
(111,867)
(625)
18,524,515 21,510,370
3,161,963
(50)
-
-
3,981,962
-
388
-
(111,867)
25,492,332
3,611,338
997,544
626,295
(2,249,322)
18,524,515 21,510,370
3,981,962
25,492,332
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
897,822
-
-
-
-
-
-
-
(184)
-
1,307,266
1,307,266
207,983
1,515,249
59,417
2,664
(2,298)
(145,376)
4,306
9,782
-
-
-
(31,252)
4,607
-
59,417
(57)
59,360
(2,664)
-
-
(2,298)
-
-
-
(2,298)
-
-
-
(145,376)
4,306
(8,096)
114
(153,472)
4,420
9,782
1
9,783
(505,587)
-
(48,915)
-
(6,350)
(505,587)
897,822
(48,915)
(31,252)
(1,927)
(2,071)
-
(162,362)
(555,744)
45,684
(507,658)
897,822
(211,277)
(586,996)
43,757
-
3,611,338
-
1,895,366
-
626,111
-
(2,347,472)
-
-
19,268,265 23,053,608
164,823
3,672,237
164,823
26,725,845
192
193
The accompanying notes are part of this consolidated financial statements.
- 9 -
- 10 -
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (CONTINUED)
Cash flows from operating activities:
Net income
Adjustments to net income:
Income tax expense
Interest income
Interest expense
Dividend income
Additions of expenses not involving cash outflows:
Loss on valuation of financial instruments at FVTPL
Loss on financial assets at FVTOCI
Impairment loss due to credit loss
Loss on other provisions
Retirement benefit
Depreciation and amortization
Net gain on foreign currency translation
Loss on derivatives (designated for hedge)
Loss on fair value hedge
Loss on valuation of investments in joint ventures and associates
Loss on disposal of premises and equipment, intangible assets and other assets
Impairment loss on premises and equipment, intangible assets and other assets
Deductions of income not involving cash inflows:
Gain on valuation of financial instruments at FVTPL
Gain on financial assets at FVTOCI
Gain on other provisions
Gain on derivatives (designated for hedge)
Gain on fair value hedge
Gain on valuation of investments in joint ventures and associates
Gain on disposal of investments in joint ventures and associates
Gain on disposal of premises and equipment, intangible assets and other assets
Reversal of impairment loss on premises and equipment, intangible assets and other
assets
Profit from bargain purchase
Other income
Changes in operating assets and liabilities:
Financial instruments at FVTPL
Loans and other financial assets at amortized cost
Other assets
Deposits due to customers
Provisions
Net defined benefit liability
Other financial liabilities
Other liabilities
Interest income received
Interest expense paid
Dividends received
Income tax paid
Net cash inflow from operating activities
(Continued)
194
2020
2019
(Korean Won in millions)
1,515,249
2,037,596
486,002
(9,523,853)
3,525,341
(138,543)
(5,651,053)
685,453
(10,576,770)
4,683,064
(107,959)
(5,316,212)
44,863
787
784,371
232,680
174,628
535,548
191,504
82,746
68,508
24,525
2,717
8,763
2,151,640
-
24,925
2,450
67,395
9,646
125,602
3,470
9,715
172
67,427
20,600
331,402
(875,076)
(22,763,192)
(89,918)
27,378,173
(184,112)
(214,741)
(2,694,701)
(8,150)
548,283
9,558,119
(4,008,001)
138,562
(315,422)
5,373,258
3,605,975
-
1,375
374,244
129,682
165,125
505,718
-
3,686
86,214
19,778
3,433
28,295
1,317,550
246,175
12,390
3,302
126,651
231
103,775
-
1,632
103
-
-
494,259
(506,772)
(11,265,714)
86,237
15,407,222
(63,751)
(293,008)
(4,719,399)
30,693
(1,324,492)
10,478,357
(4,383,916)
107,940
(552,215)
5,650,166
1,870,349
Cash flows from investing activities:
Cash in-flows from investing activities:
Disposal of financial instruments at FVTPL
Disposal of financial assets at FVTOCI
Redemption of securities at amortized cost
Disposal of investments in joint ventures and associates
Disposal of investment properties
Disposal of premises and equipment
Disposal of intangible assets
Net increase of other assets
Cash out-flows from investing activities:
Net cash in-flows of business combination
Acquisition of financial instruments at FVTPL
Acquisition of financial assets at FVTOCI
Acquisition of securities at amortized cost
Acquisition of investments in joint ventures and associates
Acquisition of investment properties
Acquisition of premises and equipment
Acquisition of intangible assets
Net cash outflow from investing activities
Cash flows from financing activities:
Cash in-flows from financing activities:
Net increase in borrowings
Issuance of debentures
Net increase of other liabilities
Issuance of hybrid securities
Retirement of treasury stocks
Paid-in capital increase on non-controlling interests
Cash out-flows from financing activities:
Net cash out-flows from hedging activities
Redemption of debentures
Redemption of lease liabilities
New stock issue cost
Acquisition of treasury stocks
Dividends paid
Redemption of hybrid stocks
Dividends paid to hybrid securities
Dividends paid to non-controlling interest
Paid-in capital decrease on non-controlling interests
Net cash inflow from financing activities
2020
2019
(Korean Won in millions)
6,605,483
20,527,695
5,661,472
410,940
353
22,828
634
26,642
33,256,047
313,058
8,082,824
23,044,741
2,380,448
550,619
76,588
149,341
114,854
34,712,473
(1,456,426)
2,033,851
23,082,798
3,971
897,822
-
45,749
26,064,191
5,409
22,168,962
204,794
-
-
505,587
598,850
211,277
2,071
-
23,696,950
2,367,241
11,357,056
14,303,197
8,709,947
30,098
193
13,343
939
-
34,414,773
296,813
11,823,630
23,775,062
6,092,078
389,096
70,346
429,547
126,342
43,002,914
(8,588,141)
3,081,757
25,510,713
-
1,656,014
760,101
-
31,008,585
5,520
23,651,950
217,867
17,337
184,164
437,626
160,000
161,052
2,014
50
24,837,580
6,171,005
Net increase (decrease) in cash and cash equivalents
4,516,790
(546,787)
Cash and cash equivalents, beginning of the period
6,392,566
6,747,894
Effects of exchange rate changes on cash and cash equivalents
(918,373)
191,459
Cash and cash equivalents, end of the period (Note 6)
9,990,983
6,392,566
The accompanying notes are part of this consolidated financial statements.
195
- 11 -
- 12 -
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
WOORI FINANCIAL GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2020 AND 2019
AS OF DECEMBER 31, 2020 AND 2019
1. GENERAL
(1) Summary of the Parent company
Woori Financial Group, Inc. (hereinafter referred to the “Parent company”) is primarily aimed at controlling
subsidiaries that operate in the financial industry or those that are closely related to the financial industry through
the ownership of shares and was established on January 11, 2019 under the Financial Holding Company Act
through the comprehensive transfer with shareholders of Woori Bank (hereinafter referred to the “Bank”), Woori
FIS Co., Ltd., Woori Finance Research Institute Co., Ltd., Woori Credit Information Co., Ltd., Woori Fund
Services Co., Ltd. and Woori Private Equity Asset Management Co. Ltd. The headquarters of the Parent
company is located at 51, Sogong-ro, Jung-gu, Seoul, Korea, and the capital is 3,611,338 million won as of
December 31, 2020 while the Korea Deposit Insurance Corp. (“KDIC”), the Parent company’s largest
shareholder, owns 124,604,797 shares (17.25%) of the Parent company’s stocks issued. The company’s stocks
were listed on the Korea Exchange on February 13, 2019, and its American Depository Shares (“ADS”) are also
being traded as the underlying common stock on the New York Stock Exchange since the same date.
The details of stock transfer between the Parent company and subsidiaries as of incorporation are as follows
(Unit: Number of shares)
Stock transfer company
Woori Bank
Woori FIS Co., Ltd.
Woori Finance Research Institute Co., Ltd.
Woori Credit Information Co., Ltd.
Woori Fund Service Co., Ltd.
Woori Private Equity Asset Management Co., Ltd.
Total number of
issued shares
Exchange ratio
per share
676,000,000
4,900,000
600,000
1,008,000
2,000,000
6,000,000
1.0000000
0.2999708
0.1888165
1.1037292
0.4709031
0.0877992
Number of Parent
company’s stocks
676,000,000
1,469,857
113,289
1,112,559
941,806
526,795
As of August 1, 2019, the Parent company acquired a 73% interest in Tongyang Asset Management Co., Ltd.
and changed the name to Woori Asset Management Corp. Also, as of August 1, 2019, the Parent company
gained 100% control of ABL Asset Management Co., Ltd., added it as a consolidated subsidiary and changed the
name to Woori Global Asset Management Co., Ltd. on December 6, 2019.
The Parent company paid 598,391 million won in cash and 42,103,377 new shares of the Parent company to
acquire 100% interest of Woori Card Co., Ltd. from its subsidiary, Woori Bank, on September 10, 2019. On the
same date, the Parent company also acquired 59.8% interest of Woori Investment Bank Co., Ltd. from Woori
Bank with 392,795 million won in cash.
As of December 30, 2019, the Parent company acquired a 67.2% interest (excluding treasury stocks, 51%
interest including treasury stocks) in Woori Asset Trust Co., Ltd. (formerly Kukje Asset Trust Co., Ltd.) and
added it as a consolidated subsidiary at the end of 2019.
The Group acquired 76.8% (excluding treasury stocks, 74.0% interest including treasury stocks) stake in Woori
Financial Capital Co., Ltd. (formerly Aju Capital Co., Ltd.) on December 10, 2020.
196
- 13 -
(2) Details of the Parent company and subsidiaries (hereinafter ‘Group’) as of December 31, 2020 and 2019
are as follows:
Subsidiaries
Held by Woori Financial Group Inc.
Woori Bank
Woori Card Co., Ltd.
Woori Financial Capital Co., Ltd.
Woori Investment Bank Co., Ltd.
(*7)
Woori Asset Trust Co., Ltd.
Woori Asset Management Corp.
Woori Credit Information Co.,
Ltd.
Woori Fund Service Co., Ltd.
Woori Private Equity Asset
Management Co., Ltd.
Woori Global Asset Management
Co., Ltd.
Woori FIS Co., Ltd.
Main business
Bank
Finance
Finance
Other credit finance
business
Real estate trust
Finance
Credit information
Finance
Finance
Finance
System software
development &
maintenance
Woori Finance Research Institute
Co., Ltd.
Other service business
Held by Woori Bank
Woori America Bank
Woori Global Markets Asia
Limited
Woori Bank China Limited
AO Woori Bank
PT Bank Woori Saudara
Indonesia 1906 Tbk
Banco Woori Bank do Brasil S.A.
Korea BTL Infrastructure Fund
Woori Finance Cambodia PLC.
(*1)(*5)
Woori Finance Myanmar Co.,
Ltd.
Wealth Development Bank
Woori Bank Vietnam Limited
WB Finance Co., Ltd.
Woori Bank Europe
Kumho Trust First Co., Ltd. (*2)
Asiana Saigon Inc. (*2)
KAMCO Value Recreation First
Securitization Specialty Co.,
Ltd. (*2)
Hermes STX Co., Ltd. (*2)
BWL First Co., LLC (*2)
Deogi Dream Fourth Co., Ltd.
(*2)
Finance
Finance
Finance
Finance
Finance
Finance
Finance
Finance
Finance
Finance
Finance
Finance
Finance
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Jeonju Iwon Ltd. (*2)
Wonju I one Inc. (*2)
Heitz Third Co., Ltd. (*2)
Woorihansoop 1st Co., Ltd. (*2)
Electric Cable First Co., Ltd.
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
(*2)(*5)
Woori International First Co.,
Asset securitization
Ltd. (*2)
Woori WEBST 1st Co., Ltd.
Asset securitization
(*2)(*5)
Wibihansoop 1st Co., Ltd. (*2)
Uri QS 1st Co., Ltd. (*2)
Uri Display 1st Co., Ltd. (*2)
Tiger Eyes 2nd Co., Ltd. (*2)
Woori Serveone 1st Co., Ltd.
(*2)(*5)
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Percentage of ownership
(%)
December 31,
2020
December 31,
2019
Financial
statements date
of use
Location
100.0
100.0
76.8
58.7
67.2
73.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
79.9
100.0
99.9
100.0 Korea
100.0 Korea
- Korea
December 31
December 31
December 31
59.8 Korea
67.2 Korea
73.0 Korea
December 31
December 31
December 31
100.0 Korea
100.0 Korea
December 31
December 31
100.0 Korea
December 31
100.0 Korea
December 31
100.0
Korea
December 31
100.0 Korea
December 31
100.0 America
December 31
Hong
100.0
Kong
100.0 China
100.0 Russia
December 31
December 31
December 31
79.9 Indonesia December 31
December 31
December 31
100.0 Brazil
99.9 Korea
-
100.0 Cambodia
-
100.0
51.0
100.0
100.0
100.0
0.0
0.0
15.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-
0.0
-
0.0
0.0
0.0
0.0
-
100.0 Myanmar December 31
51.0 Philippines December 31
December 31
100.0 Vietnam
100.0 Cambodia December 31
December 31
100.0 Germany
December 31
0.0 Korea
December 31
0.0 Korea
15.0 Korea
0.0 Korea
0.0 Korea
December 31
December 31
December 31
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
December 31
December 31
December 31
December 31
December 31
0.0 Korea
-
0.0 Korea
December 31
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
-
December 31
December 31
December 31
December 31
0.0 Korea
-
- 14 -
197
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Subsidiaries
Uri Display 2nd Co., Ltd. (*2)
Woori the Colony Unjung
Securitization Specialty Co.,
Ltd. (*2)
Woori Dream 1st Co., Ltd. (*2)
Woori Dream 2nd Co., Ltd. (*2)
Woori H 1st Co., Ltd. (*2)
Woori HS 2nd Co., Ltd. (*5)
Woori Sinnonhyeon 1st Inc. (*2)
Woori K 1st Co., Ltd. (*2)
Uri S 1st Co., Ltd. (*2)
Smart Casting Inc. (*2)(*5)
Uri Display 3rd Co., Ltd. (*2)
TY 1st Co., Ltd. (*2)
Woori HJ 2nd Co., Ltd. (*2)
Woori-HJ 3rd Co., Ltd. (*2)
Uri K 2nd Co., Ltd. (*2)
Woori KC No.1 Co., Ltd. (*2)
Woori Lake 1st., Ltd. (*2)(*5)
Woori QSell 2nd Co., Ltd. (*2)
Quantum Jump the 1st Co., Ltd.
(*2)
Quantum Jump the 2nd Co., Ltd.
(*2)
Woori BK the 1st Co., Ltd. (*2)
Woori-HC 1st Co., Ltd. (*2)
Wivi Synergy 1st Co., Ltd. (*2)
ATLANTIC
TRANSPORTATION 1 S.A.
(*2)
Woori Gongdeok First Co., Ltd.
(*2)
HD Project Co., Ltd. (*2)
Woori HW 1st Co., Ltd. (*2)
Woori HC 2nd Co., Ltd. (*2)
Woori Dream 3rd Co., Ltd. (*2)
Woori SJS 1st Co., Ltd. (*2)
Woori Steel 1st Co., Ltd (*2)
Woori-HWC 1st Co., Ltd.
SPG the 1st Co., Ltd.
Woori Park I 1st co., Ltd (*2)
Woori HC 3rd Co., Ltd. (*2).
Woori DS 1st co., Ltd (*2)
Woori HC 4th Co., Ltd. (*2).
Woori SKR 1st Co., Ltd. (*2).
G5 Pro Short-term Bond
Investment Fund 13 (*3)
Heungkuk Global Private
Placement Investment Trust
No. 1 (*3)
AI Partners UK Water Supply
Private Placement Investment
Trust No.2 (*3)
Consus Sakhalin Real Estate
Investment Trust 1st (*5)
Multi Asset Global Real Estate
Investment Trust No. 5-2 (*3)
Igis Australia Investment Trust
No. 209-1 (*3)
INMARK Spain Private
Placement Real Estate
Investment Trust No. 26-2 (*3)
Woori G Japan Investment Trust
No. 1-2 (*3)
IGIS Global Private Placement
Real Estate Fund No. 316-1
(*3)
Principal Guaranteed Trust (*4)
Main business
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Trust
Percentage of ownership
(%)
December 31,
2020
December 31,
2019
Financial
statements date
of use
Location
0.0
0.0 Korea
December 31
0.0
0.0
0.0
0.0
-
0.0
0.0
0.0
-
0.0
0.0
0.0
0.0
0.0
0.0
-
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
December 31
December 31
December 31
December 31
-
December 31
December 31
December 31
-
December 31
December 31
December 31
December 31
December 31
December 31
-
December 31
0.0 Korea
December 31
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
December 31
December 31
December 31
December 31
Marshall
islands
0.0
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
0.0 Korea
- Korea
- Korea
- Korea
- Korea
- Korea
- Korea
- Korea
- Korea
December 31
December 31
December 31
December 31
December 31
December 31
December 31
December 31
December 31
December 31
December 31
December 31
December 31
December 31
December 31
100.0
100.0 Korea
December 31
98.5
98.5 Korea
December 31
97.3
97.3 England
December 31
-
75.0 Korea
-
99.0
99.4
97.7
98.8
99.3
0.0
99.0 Korea
December 31
99.4 Korea
December 31
- Korea
December 31
- Korea
December 31
99.3 Korea
0.0 Korea
December 31
December 31
Percentage of ownership
(%)
December 31,
2020
December 31,
2019
Financial
statements date
of use
Location
Main business
Trust
0.0
0.0 Korea
December 31
Subsidiaries
Principal and Interest Guaranteed
Trust (*4)
Held by Multi Asset Global Real
Estate Investment Trust No. 5-2:
MAGI No.5 LuxCo S.a.r.l. (*3)
Held by MAGI No.5 LuxCo S.a.r.l.:
ADP 16 Brussels (*2)
Asset securitization
Asset securitization
54.6
0.0
Luxembou
rg
54.6
December 31
0.0 Belgium
December 31
Held by Woori Card Co., Ltd.:
TUTU Finance –WCI Myanmar
Co., Ltd.
Woori Card one of 2017-1
Securitization Specialty Co.,
Ltd. (*2)(*5)
Woori Card one of 2017-2
Securitization Specialty Co.,
Ltd. (*2)
Woori Card one of 2018-1
Securitization Specialty Co.,
Ltd. (*2)
Woori Card 2019-1 Asset
Securitization Specialty Co.,
Ltd. (*2)
Woori Card 2020-1 Asset
Securitization Specialty Co.,
Ltd. (*2)
Held by Woori Financial Capital
Co., Ltd.
Woori Savings Bank
ACE Auto Invest the 46th
Securitization Specialty Co.,
Ltd. (*2)
ACE Auto Invest the 47th
Securitization Specialty Co.,
Ltd. (*2)
ACE Auto Invest the 48th
Securitization Specialty Co.,
Ltd. (*2)
ACE Auto Invest the 49th
Securitization Specialty Co.,
Ltd. (*2)
Specified Money Market Trust
Held by Woori Investment Bank
Co., Ltd.:
Dongwoo First Securitization
Specialty Co., Ltd. (*2)(*5)
Seari First Securitization
Specialty Co., Ltd. (*2)
Seari Second Securitization
Specialty Co., Ltd. (*2)
Namjong 1st Securitization
Specialty Co.,
Ltd. (*2)
Bukgeum First Securitization
Specialty Co., Ltd. (*2)
Bukgeum Second Securitization
Specialty Co., Ltd. (*2)
WS1909 Securitization Specialty
Co., Ltd. (*2)
WS2003 Securitization Specialty
Co., Ltd. (*2)
WS2006 Securitization Specialty
Co., Ltd. (*2)
WJ2008 Securitization Specialty
Co., Ltd. (*2)
One Punch Korea the 1st Co.,
Ltd. (*2).
Finance
100.0
100.0 Myanmar December 31
Asset securitization
-
0.5 Korea
-
Asset securitization
0.5
0.5 Korea
December 31
Asset securitization
0.5
0.5 Korea
December 31
Asset securitization
0.5
0.5 Korea
December 31
Asset securitization
0.5
- Korea
December 31
Bank
100.0
- Korea
December 31
Asset securitization
Asset securitization
Asset securitization
1.0
1.0
1.0
- Korea
December 31
- Korea
December 31
- Korea
December 31
Asset securitization
Trust
1.0
100.0
- Korea
- Korea
December 31
December 31
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
Asset securitization
-
5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.0
5.0
0.0
5.0 Korea
-
5.0 Korea
December 31
5.0 Korea
December 31
5.0 Korea
December 31
5.0 Korea
December 31
5.0 Korea
December 31
5.0 Korea
December 31
- Korea
December 31
- Korea
December 31
- Korea
December 31
0.0 Korea
December 31
198
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199
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Percentage of ownership
(%)
December 31,
2020
December 31,
2019
Financial
statements date
of use
Location
Main business
Asset securitization
0.0
0.0 Korea
December 31
Subsidiaries
One Punch blue the 1st Co., Ltd.
(*2)
Held by Woori Asset Management
Corp.:
Woori China Convertible Bond
Hedging feeder Investment
Trust H (debt-oriented hybrid)
(*3)
Woori China Convertible Bond
Master Fund (debt-oriented
hybrid) (*3)
Woori Yellow Chip High Yield
Strategic Allocation 1 (FOF)
(*3)
Woori Together TDF 2025 (*3)
Woori Together TDF 2030 (*3)
Woori Together TDF 2035 (*3)
Woori Together TDF 2040 (*3)
Woori Together TDF 2045 (*3)
Woori Together TDF 2050 (*3)
Held by Woori Financial Capital
Co., Ltd., Woori Private Equity
Asset Management Co., Ltd. and
Woori Investment Bank Co., Ltd.:
(*6)
Japanese Hotel Real Estate
Private Equity Fund 1 (*3)
Held by Woori Global Asset
Management Co., Ltd.:
Woori G China Value Equity
(C/C(F)) (*3)(*5)
Woori G Global Multi Asset
Income Private Placement
Investment Trust_Class Cs (*3)
Held by Woori Bank, Woori
Financial Capital Co., Ltd., Woori
Investment Bank Co., Ltd and
Woori Private Equity Asset
Management Co., Ltd.: (*6)
Woori Innovative Growth
Professional Investment Type
Private Investment Trust No.1
(*3)
Woori Innovative Growth
Professional Investment Type
Private Investment Trust No.2
(*3)
Held by Woori bank and Woori
Investment Bank Co., Ltd.: (*6)
Heungkuk Woori Tech Company
Private Placement Investment
Trust No. 1 (*3)
Woori Global Development
Infrastructure Synergy
Company Private Placement
Investment Trust No.1 (*3)
Woori G NorthAmerica Infra
Private Placement Investment
Trust No. 1 (*3)
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Woori G Infrastructure New Deal
Specialized Investment Private
Securities investment
and others
200
- 17 -
99.6
98.8 Korea
December 31
34.5
98.6 Korea
December 31
89.8
47.6
47.4
47.8
48.8
47.7
87.0
- Korea
December 31
- Korea
December 31
- Korea
December 31
- Korea
December 31
- Korea
December 31
- Korea
December 31
- Korea
December 31
100.0
45.5 Korea
December 31
-
95.1 Korea
-
22.2
- Korea
December 31
90.0
60.0 Korea
December 31
85.0
- Korea
December 31
100.0
100.0 Korea
December 31
100.0
100.0 Korea
December 31
100.0
100.0
- Korea
December 31
- Korea
December 31
Subsidiaries
Equity Investment Trust No. 1
(*3)
Woori G Private Placement Real
Estate Investment Trust No.2
(*3)
Held by Woori bank (*6)
Woori G Woori Bank Partners
Private Placement Investment
Trust No. 1 (*3)
Woori G Secondary Private
Placement Investment Trust
No. 1 (*3)
Woori G Private Placement Real
Estate Investment Trust
No.1[USD] (*3)
Held by Woori Financial Capital
Co., Ltd.
Woori G Japan Private Placement
Real Estate Feeder Investment
Trust No.1-1 (*3)
Held by Woori G Japan Private
Placement Real Estate Feeder
Investment Trust No.1-1 and
Woori G Japan Investment Trust
No. 1-2
Woori G Japan Private Placement
Real Estate Master Investment
Trust No.1 (*3)
Held by Woori G Japan Private
Placement Real Estate Master
Investment Trust No.1
GK OK Chatan (*3)
Percentage of ownership
(%)
December 31,
2020
December 31,
2019
Financial
statements date
of use
Location
30.1
- Korea
December 31
92.6
97.2
80.0
- Korea
December 31
- Korea
December 31
Korea
December 31
63.2
- Korea
December 31
Main business
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
Securities investment
and others
100.0
- Korea
December 31
Other financial services
-
- Korea
December 31
(*1) The entity was merged with WB Finance Co., Ltd., which is a second-tier subsidiary, during current period.
(*2) The entity is a structured entity for the purpose of asset securitization. Although the Group is not a majority
shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its
involvement with the investee, and 3) has the ability to use its power to affect its returns.
(*3) The entity is a structured entity for the purpose of investment in securities. Although the Group is not a majority
shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable returns from its
involvement with the investee, and 3) has the ability to use its power to affect its returns.
(*4) The entity is a ‘money trust’ under the Financial Investment Services and Capital Markets Act. Although the Group
is not a majority shareholder, the Group 1) has the power over the investee, 2) is exposed to or has rights to variable
returns from its involvement with the investee, and 3) has the ability to use its power to affect its returns.
(*5) Companies are excluded from the consolidation as of December 31, 2020.
(*6) Determined that the Group controls the investees, considering the Group 1) has the power over the investee, 2) is
exposed to or has rights to variable returns from its involvement with the investee, and 3) has the ability to use its
power to affect its returns, by two or more subsidiaries' investment or operation.
(*7) The equity ratio changed due to paid-in capital increase as of December 31, 2020.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(3) The Group has not consolidated the following entities as of December 31, 2020 and 2019 despite having
more than 50% ownership interest:
As of December 31, 2020
Subsidiaries
Location Main Business
Korea
Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*)
Korea
Kiwoom Yonsei Private Equity Investment Trust (*)
Korea
IGIS Europe Private Placement Real Estate Fund No. 163-2 (*)
Korea
IGIS Global Private Placement Real Estate Fund No. 148-1 (*)
Korea
IGIS Global Private Placement Real Estate Fund No. 148-2 (*)
Korea
Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*)
Hangkang Sewage Treatment Plant Fund (*)
Korea
KIM Pocheon-Hwado Highway Infra Private Placement Special Asset Fund (*) Korea
Korea
Kiwoom-Harmony Private Placement Investment Trust No.2 (*)
Korea
Kiwoom-Harmony Private Placement Investment Trust No.1 (*)
Midas Global Private Placement Real Estate Investment Trust No. 7-2 (*)
Korea
Together-Korea Government Private Pool Private Securities Investment Trust
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Percentage of
ownership (%)
59.7
88.9
97.9
75.0
75.0
66.7
55.6
55.2
96.3
95.7
58.3
No.3 (*)
INMARK France Private Placement Investment Trust No. 18-1 (*)
Kiwoom Vibrato Private Placement Investment Trust 1-W(EUR) (*)
Korea
Korea
Korea
Securities Investment
Securities Investment
Securities Investment
100.0
93.8
99.3
(4) The summarized financial information of the major subsidiaries are as follows. The financial
information of each subsidiary was prepared on the basis of consolidated financial statements. (Unit:
Korean Won in millions):
As of and for the year ended December 31, 2020
Subsidiaries
Woori Bank
Woori Card Co., Ltd.
Woori Financial Capital Co., Ltd. (*)
Woori Investment Bank Co., Ltd.
Woori Asset Trust Co., Ltd.
Woori Asset Management Corp.
Woori Credit Information Co., Ltd.
Woori Fund Service Co., Ltd.
Woori Private Equity Asset Management Co., Ltd.
Woori Global Asset Management Co., Ltd.
Woori FIS Co., Ltd.
Woori Finance Research Institute Co., Ltd.
Assets
374,310,415
11,366,596
8,880,117
4,332,474
185,634
136,460
40,860
18,957
38,035
37,935
97,479
7,232
Liabilities
350,790,158
9,312,986
8,053,840
3,803,594
56,396
23,411
9,830
2,172
2,009
9,807
59,577
3,689
Operating
revenue
26,838,766
1,388,208
218,945
256,079
79,426
26,158
40,010
13,346
4,773
10,652
249,169
6,223
Net income
(loss)
attributable to
owners
1,363,224
120,230
(30,349)
62,937
35,312
6,797
1,879
2,563
823
(1,449)
2,013
105
Comprehensive
income (loss)
attributable to
owners
1,295,302
118,109
(38,293)
62,275
35,954
6,313
1,600
2,563
768
(1,449)
1,935
95
(*) Since the investee is a private equity investment fund, the Group does not have the power over the fund’s activities
even though it holds more than 50% of ownership interest.
(*) Net income (loss) attributable to owners of Woori Financial Capital for the year ended December 31, 2020 has been
prepared on a cumulative basis since entity was included as the subsidiary.
As of December 31, 2019
As of and for the year ended December 31, 2019
Subsidiaries
Location Main Business
Korea
Golden Bridge NHN Online Private Equity Investment (*)
Korea
Mirae Asset Maps Clean Water Private Equity Investment Trust 7th (*)
Korea
Kiwoom Yonsei Private Equity Investment Trust (*)
Korea
IGIS Europe Private Placement Real Estate Fund No. 163-2 (*)
Korea
IGIS Global Private Placement Real Estate Fund No. 148-1 (*)
Korea
IGIS Global Private Placement Real Estate Fund No. 148-2 (*)
Korea
Mirae Asset Seoul Ring Expressway Private Special Asset Fund No. 1 (*)
Hangkang Sewage Treatment Plant Fund (*)
Korea
KIM Pocheon-Hwado Highway Infra Private Placement Special Asset Fund (*) Korea
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Securities Investment
Percentage of
ownership (%)
60.0
59.7
88.9
97.9
75.0
75.0
66.7
55.6
55.2
(*) Since the investee is a private equity investment fund, the Group does not have the power over the fund’s activities
even though it holds more than 50% of ownership interest.
Subsidiaries
Woori Bank (*1)
Woori Card Co., Ltd.
Woori Investment Bank Co., Ltd.
Woori Asset Trust Co., Ltd. (*2)
Woori Asset Management Corp. (*2)
Woori Credit Information Co., Ltd.
Woori Fund Service Co., Ltd.
Woori Private Equity Asset Management Co., Ltd.
Woori Global Asset Management Co., Ltd. (*2)
Woori FIS Co., Ltd.
Woori Finance Research Institute Co., Ltd.
Assets
348,181,658
10,087,342
3,398,960
139,839
113,037
37,872
16,852
38,243
32,807
91,079
5,447
Liabilities
325,526,568
8,299,175
3,031,622
45,410
6,301
7,948
2,109
2,985
3,230
55,112
1,999
Operating
revenue
22,240,947
1,368,234
204,655
-
9,204
39,118
11,071
4,152
3,588
244,923
5,452
Net income
(loss)
attributable to
owners
1,505,547
114,196
53,358
-
1,720
1,698
1,735
(2,087)
(1,360)
3,107
160
Comprehensive
income (loss)
attributable to
owners
1,531,793
111,782
52,095
-
2,544
1,389
1,735
(2,124)
(1,360)
3,119
117
(*1) The amount is prepared based on the consolidated financial statements of Woori Bank (before reflecting the
classification of profit or loss of the discontinued operation).
(*2) Net income (loss) attributable to owners of Woori Asset Trust Co., Ltd., Woori Asset Management Corp. and Woori
Global Asset Management Co., Ltd. are prepared on a cumulative basis from the date on which the entities were
included as subsidiaries, to December 31, 2019.
202
- 19 -
- 20 -
203
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(5) The financial support that the Group provides to consolidated structured entities is as follows:
-
-
Structured entity for asset securitization
The structured entity which is established for the purpose of securitization of project financing
loans, corporate bonds, and other financial assets. The Group is involved with the structured entity
through provision of credit facility over asset-backed commercial papers issued by the entity,
originating loans directly to the structured entity, or purchasing 100% of the subordinated debts
issued by the structured entity.
Structured entity for the investments in securities
The structured entity is established for the purpose of investments in securities. The Group acquires
beneficiary certificates through its contribution of funding to the structured entity by the Group,
and it is exposed to the risk that it may not be able to recover its fund depending on the result of
investment performance of asset managers of the structured entity.
- Money trust under the Financial Investment Services and Capital Markets Act
The Group provides with financial guarantee of principal and interest or solely principal to some of
its trust products. Due to the financial guarantees, the Group may be obliged when the principal
and interest or principal of the trust product sold is short of the guaranteed amount depending on
the result of investment performance of the trust product.
As of December 31, 2020, the Group provides 2,540,760 million won of credit facilities for the structured
entities mentioned above.
(6) The Group has entered into various agreements with structured entities such as asset securitization,
structured finance, investment fund, and monetary trust. The characteristics and the nature of risks
related to unconsolidated structured entities over which the Group does not have control in accordance
with Korean IFRS 1110 are as follows:
The interests in unconsolidated structured entities that the Group hold are classified into asset securitization
vehicles, structured finance, investment fund and real-estate trust, based on the nature and the purpose of
each structured entity.
Unconsolidated structured entities classified as ‘asset securitization vehicles’ are entities that issue asset-
backed securities, pay the principal and interest or distributes dividends on asset-backed securities through
borrowings or profits from the management, operation and sale of securitized assets. The Group has been
purchasing commitments of asset-backed securities or issuing asset-backed securities through credit grants,
and the structured entities recognize related interest or fee revenue. There are entities that provide additional
funding and conditional debt acquisition commitments before the Group’s financial support, but the Group is
still exposed to losses arising from the purchase of financial assets issued by the structured entities when it
fails to renew the securities.
Unconsolidated structured entities classified as ‘structured financing’ include real estate project financing
investment vehicle, social overhead capital companies, and special purpose companies for ship (aircraft)
financing. Each entity is incorporated as a separate company with a limited purpose in order to efficiently
pursue business goals. ‘Structured financing’ is a financing method for large-scale risky business, with
investments made based on feasibility of the specific business or project, instead of credit of business owner
or physical collaterals. The investors receive profits from the operation of the business. The Group
recognizes interest revenue, profit or loss from assessment or transactions of financial instruments, or
dividend income. With regard to uncertainties involving structured financing, there are entities that provide
financial support such as additional fund, guarantees and prioritized credit grants prior to the Group’s
intervention, but the Group is exposed to possible losses due to loss of principal from reduction in investment
value or irrecoverable loans arising from failure to collect scheduled cash flows and cessation of projects.
Unconsolidated structured entities classified as ‘investment funds’ include investment trusts and private
equity funds. An investment trust orders the investment and operation of funds to the trust manager in
accordance with trust contract with profits distributed to the investors. Private equity funds finances money
required to acquire equity securities to enable direction of management and/or improvement of ownership
structure, with profit distributed to the investors. The Group recognizes pro rata amount of valuation gain or
loss on investment and dividend income as an investor and may be exposed to losses due to reduction in
investment value. Investments in MMF(Money Market Funds) as of December 31, 2020 and 2019 are
427,375 million won and 47,502 million won, respectively, and there is no additional commitments for
MMF.
‘Real estate trust’ is to be entrusted the underlying property for the purpose of managing, disposing,
operating or developing from the consignor who owns the property and distributes the proceeds achieved
through the trust to the beneficiary. When the consignee does not fulfill his or her important obligations in
the trust contract or it is, in fact, difficult to run the business, the Group may be exposed to the threat of
compensating the loss.
The total assets of the unconsolidated structured entity held by the Group, the carrying amount of the items
recognized in the consolidated financial statements, the maximum loss exposure, and the losses from the
unconsolidated structured entity are as follows. The maximum loss exposure includes the amount of
investment recognized in the consolidated financial statements and the amount that is likely to be confirmed
in the future when satisfies certain conditions by contracts such as purchase arrangements, credit offerings.
As of December 31, 2020 and 2019, the purchase commitment amount is 4,266,319 million won and
2,264,510 million won, respectively.
204
- 21 -
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205
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Total asset of the unconsolidated
structured entities
Assets recognized in the consolidated
financial statements related to the
unconsolidated structured entities
Financial assets at FVTPL
Financial assets at FVTOCI
Financial assets at amortized cost
Investments in joint ventures and
associates
Derivative assets
Liabilities recognized in the
consolidated financial statements
related to the unconsolidated
structured entities
Other liabilities (provisions)
The maximum exposure to risks
Investment assets
Credit facilities and others
Loss recognized on unconsolidated
structured entities
Total asset of the unconsolidated
structured entities
Assets recognized in the consolidated
financial statements related to the
unconsolidated structured entities
Financial assets at FVTPL
Financial assets at FVTOCI
Financial assets at amortized cost
Investments in joint ventures and
associates
Derivative assets
Liabilities recognized in the
consolidated financial statements
related to the unconsolidated
structured entities
Derivative liabilities
Other liabilities (provisions)
The maximum exposure to risks
Investment assets
Credit facilities and others
Loss recognized on unconsolidated
structured entities
December 31, 2020
Asset
securitization
vehicle
Structured
Finance
Investment
Funds Real-estate trust
3,900,254
69,010,369
44,629,638
76,772
648,700
374,231
163,808
109,008
-
1,653
130
130
970,628
648,700
321,928
4,291,535
167,271
41,378
4,072,321
5,958
4,607
963
963
5,366,037
4,291,535
1,074,502
3,350,605
2,922,716
-
39,955
387,902
32
-
-
3,438,924
3,350,605
88,319
-
6,079
25,454
22,402
-
-
22,402
-
-
400
400
65,722
22,402
43,320
2,363
Asset securitization
vehicle
Structured Finance Investment Funds Real-estate trust
December 31, 2019
8,230,254
62,879,421
18,265,273
152,257
5,128,616
324,414
2,006,230
2,796,695
-
1,277
184
-
184
5,561,394
5,128,616
432,778
2,982,217
28,834
42,305
2,897,620
7,475
5,983
1,291
15
1,276
3,532,539
2,982,217
550,322
1,411,639
1,109,621
-
120,072
181,946
-
-
-
-
1,457,398
1,411,639
45,759
-
4,660
34,312
57,928
655
-
57,273
-
-
2,808
-
2,808
77,117
57,928
19,189
5,218
(7) As of December 31, 2020 and 2019, the share of non-controlling interests on the net income and equity
of subsidiaries in which non-controlling interests are significant are as follows: (Unit: Korean Won in
millions):
1) Accumulated non-controlling interests at the end of the reporting period
Woori Bank (*)
Woori Financial Capital Co., Ltd.
Woori Investment Bank Co., Ltd.
Woori Asset Trust Co., Ltd.
Woori Asset Management Corp
PT Bank Woori Saudara Indonesia 1906 Tbk
Wealth Development Bank
(*) Hybrid securities issued by Woori Bank
December 31, 2020
December 31, 2019
3,105,070
166,369
222,289
49,738
31,369
79,890
19,521
3,660,814
-
151,170
40,161
29,800
83,315
18,524
2) Net income attributable to non-controlling interests
Woori Bank (*)
Woori Financial Capital Co., Ltd.
Woori Investment Bank Co., Ltd.
Woori Asset Trust Co., Ltd.
Woori Asset Management Corp
PT Bank Woori Saudara Indonesia 1906 Tbk
Wealth Development Bank
(*) Distribution of the hybrid securities issued by Woori Bank
3) Dividends to non-controlling interests
Woori Bank (*)
Woori Asset Trust Co., Ltd.
PT Bank Woori Saudara Indonesia 1906 Tbk
(*) Distribution of the hybrid securities issued by Woori Bank
For the years ended December 31
2019
2020
162,362
1,466
25,643
9,732
1,699
6,040
1,130
134,421
-
21,588
-
408
8,502
427
For the years ended December 31
2020
2019
162,362
365
1,669
134,421
-
1,981
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
(1) Basis of presentation
The Group maintains its accounting records in Korean won and prepares statutory financial statements in the
Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the
Republic of Korea (Korean IFRS). The accompanying consolidated financial statements have been
condensed, restructured and translated into English from the Korean language financial statements.
Certain information attached to the Korean language financial statements, but not required for a fair
presentation of the Group's financial position, financial performance or cash flows, is not presented in the
accompanying consolidated financial statements.
The consolidated financial statements of the Group have been prepared in accordance with Korean IFRS.
These are the standards, subsequent amendments and related interpretations issued by the International
Accounting Standards Board (IASB) that have been adopted by the Republic of Korea.
The principal accounting policies applied in the preparation of these consolidated financial statements are set
out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
The consolidated financial statements, as described in following paragraphs of accounting policy, are prepared
at the end of each reporting period in historical cost basis, except for certain non-current assets and financial
assets that are either revalued or measured in fair value. Historical cost is generally measured at the fair value
of consideration given to acquire assets.
The consolidated financial statements of the Group were first approved for the issuance by the Board of
Directors on February 5, 2021 and amended on March 5, 2021. The final approval will be made in the annual
general shareholders’ meeting on March 26, 2021.
1) The standards and interpretations that are newly adopted by the Group during the current period,
and the changes in accounting policies thereof are as follows:
① Amendments to Korean IFRS 1103 Business Combination – Definition of a Business
To consider the integration of the required activities and assets as a business, the amended
definition of a business requires an acquisition to include an input and a substantive process that
together significantly contribute to the ability to create outputs, and excludes economic benefits
from the lower costs. An entity can apply a concentration test, an optional test, where
substantially all of the fair value of gross assets acquired is concentrated in a single asset or a
group of similar assets, the assets acquired would not represent a business. The amendment does
not have a significant impact on the financial statements.
② Amendments to Korean IFRS 1001 Presentation of Financial Statements and Korean IFRS 1008
Accounting policies, changes in accounting estimates and errors – Definition of Materiality
The amendments clarify the explanation of the definition of materiality and amended Korean
IFRS 1001 and Korean IFRS 1008 according to the definition. Materiality is assessed by
reference to omission or misstatement of material information as well as effects of immaterial
information, and to the nature of the users when determining the information to be disclosed by
the Group. The amendment does not have a significant impact on the financial statements.
③ Amendments to Korean IFRS 1116 Lease – Practical expedient for COVID-19-Related Rent
Exemption, Concessions, Suspension
As a practical expedient, a lessee may elect not to assess whether a rent concession occurring as a
direct consequence of the COVID-19 pandemic is a lease modification. A lessee that makes this
election shall account for any change in lease payments resulting from the rent concession the
same way it would account for the change applying this Standard if the change were not a lease
modification.
With implementation of Korean IFRS 1116 Lease, the Group has changed its accounting policy.
The Group has adopted Korean IFRS 1116 retrospectively, as permitted under the specific
transitional provisions in the standard. There was no cumulative impact on the beginning balance
of retained earnings as at January 1, 2020 by retrospectively applying this standard, and the
Group did not restate comparatives for the 2019 reporting period. The impact of the adoption of
the leasing standard are disclosed in Note 43.
2) The details of Korean IFRSs that have been issued and published as of the date of issue approval of
financial statements but have not yet reached the effective date, and which the Group has not
applied at an earlier date are as follows:
① Amendments to Korean IFRS 1103 Business Combination – Reference to the Conceptual
Framework
The amendments update a reference of definition of assets and liabilities qualify for recognition
in revised Conceptual Framework for Financial Reporting. However, the amendments add an
exception for the recognition of liabilities and contingent liabilities within the scope of Korea
IFRS 1037 Provisions, Contingent Liabilities and Contingent Assets, and Korean IFRS 2121
Levies. The amendments also confirm that contingent assets should not be recognized at the
acquisition date. The amendments should be applied for annual periods beginning on or after
January 1, 2022, and earlier application is permitted. The Group does not expect that these
amendments have a significant impact on the financial statements.
② Amendments to Korean IFRS 1037 Provisions, Contingent Liabilities and Contingent Assets –
Onerous Contracts: Cost of Fulfilling a Contract
The amendments clarify that the direct costs of fulfilling a contract include both the incremental
costs of fulfilling the contract and an allocation of other costs directly related to fulfilling
contracts when assessing whether the contract is onerous. The amendments should be applied for
annual periods beginning on or after January 1, 2022, and earlier application is permitted. The
Group does not expect that these amendments have a significant impact on the financial
statements.
③ Amendments to Korean IFRS 1016 Property, plant and equipment – Proceeds before intended
use
The amendments prohibit an entity from deducting from the cost of an item of property, plant
and equipment any proceeds from selling items produced while the entity is preparing the asset
for its intended use. Instead, the entity will recognize the proceeds from selling such items, and
the costs of producing those items, in profit or loss. The amendments should be applied for
annual periods beginning on or after January 1, 2022, and earlier application is permitted. The
Group does not expect that these amendments have a significant impact on the financial
statements.
④ Annual Improvements to Korean IFRS 2018-2020
Annual improvements of Korean IFRS 2018-2020 Cycle should be applied for annual periods
beginning on or after January 1, 2022, and earlier application is permitted. The Group does not
expect that these amendments have a significant impact on the financial statements.
- Korean IFRS 1101 First time Adoption of Korean International Financial Reporting
Standards- Subsidiaries that are first-time adopters
- Korean IFRS 1109 Financial Instruments - Fees related to the 10% test for derecognition of
financial liabilities
- Korean IFRS 1116 Leases- Lease incentives
- Korean IFRS 1041 Agriculture - Measuring fair value
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
⑤ Amendments to Korean IFRS 1001 Presentation of Financial Statements – Classification of
Liabilities as Current or Non-current
The amendments clarify that liabilities are classified as either current or non-current, depending
on the substantive rights that exist at the end of the reporting period. Classification is unaffected
by the likelihood that an entity will exercise right to defer settlement of the liability or the
expectations of management. Also, the settlement of liability include the transfer of the entity's
own equity instruments, however, it would be excluded if an option to settle them by the entity's
own equity instruments if compound financial instruments is met the definition of equity
instruments and recognized separately from the liability. The amendments should be applied for
annual periods beginning on or after January 1, 2023, and earlier application is permitted. The
Group does not expect that these amendments have a significant impact on the financial
statements.
The above enacted or amended standards will not have a significant impact on the Group.
(2) Basis of consolidated financial statement presentation
The consolidated financial statements consist of the financial statements of the parent company and the
entities (including structured entities) controlled by the parent company (or its subsidiaries, which is the
“Group”). Control is achieved where the Group 1) has the power over the investee, 2) is exposed, or has
rights, to variable returns from its involvement with the investee, and 3) able to use its power to affect its
returns. The Group reassesses whether it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control listed above.
When the Group has less than most of the voting rights of an investee, it has power over the investee when
the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee
unilaterally. The Group considers all relevant facts and circumstances in assessing whether the Group's
voting rights in an investee are enough to give it power, including:
-
The relative size of the Group's holding of voting rights and dispersion of holdings of the other
vote holders;
Potential voting rights held by the Group, other vote holders or other parties;
Rights arising from other contractual arrangements;
-
-
- Any additional facts and circumstances that indicate that the Group has, or does not have, the
current ability to direct the relevant activities at the time that decisions need to be made, including
voting patterns at previous shareholders' meetings.
Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated
statement of comprehensive income from the date the Group gains control until the date when the Group
ceases to control the subsidiary. The carrying amount of the non-controlling interest after the acquisition is
the amount initially recognized plus the amount of proportionate interest of the non-controlling interest in the
changes in equity since the acquisition. Total comprehensive income of subsidiaries is attributed to the owner
of the Group and to the non-controlling interests even if this results in the non-controlling interests having a
negative (-) balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies into line with the Group’s accounting policies.
All intra-group transactions and, related assets and liabilities, income and expenses are eliminated in full on
consolidation.
Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over
the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and
the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries.
Any difference between the amount by which the non-controlling interests are adjusted and the fair value of
the consideration paid or received is recognized directly in equity and attributed to the owner of the parent
company.
When the Group loses control of a subsidiary, a gain or loss on disposal is calculated as the difference
between (i) the aggregate of the fair value of the consideration received and the fair value of any retained
interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the
subsidiary and any non-controlling interests. When assets of the subsidiary are carried at revalued amounts or
fair values and the related cumulative gain or loss has been recognized in other comprehensive income and
accumulated in equity, the amounts previously recognized in other comprehensive income and accumulated
in equity are accounted for as if the Group had directly disposed of the relevant assets (i.e. reclassified to
profit or loss or transferred directly to retained earnings). The fair value of any investment retained in the
former subsidiary at the date when control is lost is recognized as the fair value on initial recognition for
subsequent accounting under Korean IFRS 1109 Financial Instruments or, when applicable, the cost on initial
recognition of an investment in an associate or a joint venture.
(3) Business combinations
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The consideration
transferred in a business combination is measured as the sum of the acquisition-date fair values of the assets
transferred by the Group in exchange for control of the acquiree, liabilities assumed by the Group for the
former owners of the acquiree and the equity interests issued by the Group. Acquisition-related costs are
generally recognized in profit or loss as incurred.
At the acquisition date, the acquiree’s identifiable acquires assets, liabilities and contingent liabilities are
recognized at their fair value, except for the followings:
- Deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements
-
are recognized and measured in accordance with Korean IFRS 1012 Income Taxes and Korean
IFRS 1019 Employee Benefits, respectively;
Liabilities or equity instruments related to share-based payment arrangements of the acquiree or
share-based payment arrangements of the Group entered into to replace share-based payment
arrangements of the acquiree are measured in accordance with Korean IFRS 1102 Share-based
Payment at the acquisition date; and
- Non-current assets (or disposal groups) that are classified as held for sale are measured in
accordance with Korean IFRS 1105 Non-current Assets Held for Sale and Discontinued Operations
Any excess of the sum of the consideration transferred, the amount of any non-controlling interest in the
acquiree and the fair value of the Group’s previously held equity interest (if any) in the acquiree over the net
of identifiable assets and liabilities assumed of the acquiree at the acquisition date is recognized as goodwill.
If, after reassessment, the Group’s interest in the fair value of the acquiree’s identifiable net assets exceeds
the sum of the consideration transferred, the amount of any non-controlling interest in the acquiree and the
fair value of the acquirer’s previously held equity interest in the acquiree (if any), the excess is recognized
immediately in net income as a bargain purchase gain.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
The subsidiary's non-controlling interests are identified separately from the Group's equity. If the element of
the non-controlling interest in the acquiree is the current interest at the acquisition date and the holder is
entitled to a proportional share of the entity's net assets, the non-controlling interest can be measured in 1)
fair value or 2) proportionate share of the current equity instrument of the amount recognized for the
acquiree's identifiable net assets at the acquisition date. The selection of these metrics is made for each
acquisition transaction. All other non-controlling interests are measured at fair value at the acquisition date.
The carrying amount of the non-controlling interest after acquisition reflects the proportional interest of the
non-controlling interest in changes in equity after acquisition in the initial recognition amount. Even if the
non-controlling interest is a negative (-) balance, total comprehensive income is attributed to the non-
controlling interest.
When the consideration transferred by the Group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at its
acquisition-date fair value and included as part of the consideration transferred in a business combination.
Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are
adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments
are adjustments that arise from additional information obtained during the ‘measurement period’ (which
cannot exceed one year from the acquisition date) about facts and circumstances that existed at the
acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as
measurement period adjustments depends on how the contingent consideration is classified. Contingent
consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent
settlement is accounted for within equity. Contingent consideration other than the above is remeasured at
subsequent reporting dates as appropriate, with the corresponding gain or loss being recognized in profit or
loss.
When a business combination is achieved in stages, the Group's previously held equity interest in the
acquiree is remeasured at fair value at the acquisition date (i.e., the date when the Group obtains control) and
the resulting gain or loss, if any, is recognized in net income(or other comprehensive income, if applicable).
Amounts arising from changes in value of interests in the acquiree prior to the acquisition date that have
previously been recognized in other comprehensive income are recognized, identical to the treatment
assuming interests are sold directly.
If the initial accounting for a business combination is not completed by the end of the reporting period in
which the business combination occurred, the Group reports in consolidated financial statements the
provisional amount of items that have not been accounted for. If there is new information about the facts and
circumstances that existed as of the acquisition date during the measurement period (see above), the Group
retrospectively adjusts the provisional amounts recognized at the acquisition date or recognizes additional
assets and liabilities to reflect the information that would have affected the measurement of the amount
recognized at the acquisition date if it had already known at the acquisition date.
(4) Investments in joint ventures and associates
An associate is an entity over which the Group has significant influence, and that is not a subsidiary or a joint
venture. Significant influence is the power to participate in making decision on the financial and operating
policy of the investee but is not control or joint control over those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to net assets relating to the arrangement. Joint control is the contractually agreed sharing of control of
an arrangement, which exists only when decisions about the relevant activities require the unanimous consent
of the parties sharing control.
The net income of current period and the assets and liabilities of the joint ventures and associates are
incorporated in these consolidated financial statements using the equity method of accounting, except when
the investment is classified as held for sale, in which case it is accounted for in accordance with Korean IFRS
1105 Non-current Assets Held for Sale and Discontinued Operations. Under the equity method, an
investment in the joint ventures and associates is initially recognized in the consolidated statements of
financial position at cost and adjusted thereafter to recognize the Group's share of the net assets of the joint
ventures and associates and any impairment. When the Group's share of losses of the joint ventures and
associates exceeds the Group's interest in the associate, the Group discontinues recognizing its share of
further losses. Additional losses are recognized only to the extent that the Group has incurred legal or
constructive obligations or made payments on behalf of the joint ventures and associates.
Investment in joint ventures and associates are accounted for and applied with the equity method from the
time the investee becomes an associate or a joint venture.
Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets,
liabilities and contingent liabilities of the joint ventures and associates recognized at the date of acquisition is
recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the
Group’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost
of acquisition exists after the review, it is recognized immediately in net income.
The requirements of Korean IFRS 1028 - Investments in Associates and Joint Ventures to determine whether
there has been a loss event are applied to identify whether it is necessary to recognize any impairment loss
with respect to the Group’s investment in the joint ventures and associates. When necessary, the entire
carrying amount of the investment (including goodwill) is tested for impairment in accordance with Korean
IFRS 1036 - Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in
use and fair value less costs to sell) with its carrying amount. Any impairment loss recognized is not
allocated to any asset (including goodwill), which forms part of the carrying amount of the investment. Any
reversal of that impairment loss is recognized in accordance with Korean IFRS 1036 to the extent that the
recoverable amount of the investment subsequently increases.
The Group ceases to use the equity method from the time it fails meet the definition of an associate or a joint
venture. Upon a loss of significant influence over the joint ventures and associates, the Group discontinues
the use of the equity method and measures at fair value of any investment that the Group retains in the former
joint ventures and associates from the date when the Group loses significant influence. The fair value of the
investment is regarded as its fair value on initial recognition as a financial asset in accordance with Korean
IFRS 1109 Financial Instruments; Recognition and Measurement. The Group recognized differences between
the carrying amount and fair value in net income and it is included in determination of the gain or loss on
disposal of joint ventures and associates. The Group accounts for all amounts recognized in other
comprehensive income in relation to that joint ventures and associates on the same basis as would be required
if the joint ventures and associates had directly disposed of the related assets or liabilities. Therefore, if a gain
or loss previously recognized in other comprehensive income by an associate or a joint venture would be
reclassified to net income on the disposal of the related assets or liabilities, the Group reclassifies the gain or
loss from equity to net income as a reclassification adjustment.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
When the Group’s ownership of interest in an associate or a joint venture decreases but the Group continues
to maintain significant influence over an associate or a joint venture, the Group reclassifies to profit or loss
the proportion of the gain or loss that had previously been recognized in other comprehensive income relating
to that decrease in ownership interest if the gain or loss would be reclassified to profit or loss on the disposal
of the related assets or liabilities. Meanwhile, if interest on associate or joint venture meets the definition of
non-current asset held for sale, it is accounted for in accordance with Korean IFRS 1105.
The Group continues to use the equity method when an investment in an associate becomes an investment in
a joint venture or an investment in a joint venture becomes an investment in an associate. There is no
remeasurement to fair value upon such changes in ownership interests.
When the Group transacts with an associate or a joint venture of the Group, profits and losses resulting from
the transactions with the associate or joint venture are recognized in the Group's consolidated financial
statements only to the extent of interests in the associate or joint venture that are not related to the Group.
The Group applies Korean IFRS 1109 Financial Instruments, including the impairment requirements, to its
long-term investment interests in associates and joint ventures that form part of its net investment without
applying the equity method. In addition, when applying Korean IFRS 1109 to long-term investments, the
Group does not consider adjustments to the carrying amount required by Korean IFRS 1028. Examples of
such adjustments include an impairment assessment or an adjustment to the carrying amount of the long-term
investment interest resulting from the allocation of losses to the investee in accordance with Korean IFRS
1028.
(5) Investment in joint operation
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control.
When the Group operates as a joint operator, it recognizes in relation to its interest in a joint operation:
-
-
-
-
-
its assets, including its share of any assets held jointly;
its liabilities, including its share of any liabilities incurred jointly;
its revenue from the sale of its share of the output arising from the joint operation;
its share of the revenue from the sale of the output by the joint operation;
its expenses, including its share of any expenses incurred jointly.
The Group accounts for the assets, liabilities, revenues and expenses that correspond to its interest in a joint
operation in accordance with the Korean IFRSs applicable to the specific assets, liabilities, revenues and
expenses.
When the Group enters into a transaction with a joint operation in which it is a joint operator, such as a sale
or contribution of assets, it is conducting the transaction with the other parties to the joint operation and, as
such, the Group recognizes gains and losses resulting from such a transaction only to the extent of the other
parties’ interests in the joint operation.
When the Group enters a transaction with a joint operation in which it is a joint operator, such as a purchase
of assets, it does not recognize proportional share of profit or loss until the asset is sold to a third party.
(6) Revenue recognition
Korean IFRS 1115 requires the recognition of revenues based on transaction price allocated to the
performance obligation when or as the Group performs that obligation to the customer. Revenues other than
those from contracts with customers, such as interest revenue and loan origination fee (cost), are recognized
through effective interest rate method.
1) Revenues from contracts with customers
The Group recognizes revenue when the Group satisfies a performance obligation by transferring a
promised good or service to a customer. When a performance obligation is satisfied, the Group shall
recognize as a revenue the amount of the transaction price that is allocated to that performance
obligation. The transaction price is the amount of consideration to which the Group expects to be
entitled in exchange for transferring promised goods or services to a customer, excluding amounts
collected on behalf of third parties.
The Group is recognizing revenue by major sources as shown below:
① Fees and commission received for brokerage
The fees and commission received for agency are the amount of consideration or fee expected to
be entitled to receive in return for providing goods or services to the other parties with the Group
acting as an agency, such as in the case of sales of bancassurance and beneficiary certificates.
Most of these fees and commission received for brokerage are from the business activities
relevant to Banking segment.
② Fees and commission received related to credit
The fees and commission received related to credit mainly include the lending fees received from
the loan activity and the fees received in the L/C transactions. Except for the fees and
commission accounted for in calculating the effective interest rate, it is generally recognized
when the performance obligation has been performed. Most of these fees and commission
received related to credit are from the business activities relevant to Banking, Credit card and
Investment banking segment.
③ Fees and commission received for electronic finance
The fees and commission received for electronic finance include fees received in return for
providing various kinds of electronic financial services through firm-banking and CMS. These
fees are recognized as revenue immediately upon the completion of services. Most of these fees
and commission received for electronic finance are from the business activities relevant to
Banking and Investment banking segment.
④ Fees and commission received on foreign exchange handling
The fees and commission received on foreign exchange handling consist of various fees incurred
when transferring foreign currency. The point of processing the customer's request is the time
when performance obligation is satisfied, and revenue is immediately recognized when fees and
commission are received after requests are processed. The business activities relevant to these
fees and commission received on foreign exchange handling are substantially attributable to
Banking segment.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
⑤ Fees and commission received on foreign exchange
⑪ Other fees
The fees and commission received on foreign exchange consist of fees related to the issuance of
various certificates, such as exchange, import and export performance certificates, purchase
certificates, etc. The point of processing the customer's request is the time when performance
obligation is satisfied, and revenue is immediately recognized when fees and commission are
received after requests are processed. The business activities relevant to these fees and
commission received on foreign exchange are substantially attributable to Banking segment.
⑥ Fees and commission received for guarantee
The fees and commission received for guarantee include the fees received for the various
warranties. The activities related to the warranty consist mainly of performance obligations
satisfied over time and fees and commission are recognized over the guarantee period. The
business activities relevant to these fees and commission received for guarantee are substantially
attributable to Banking segment.
⑦ Fees and commission received on credit card
The fees and commission received on credit card consist mainly of merchant account fees and
annual fees.
The Group recognizes merchant account fees by multiplying agreed commission rate to the
amount paid by using the credit card. The annual fees are performance obligation satisfied over
time and are recognized over agreed periods after the annual fees are paid in advance. The
business activities relevant to these fees and commission received on credit card are substantially
attributable to Credit cards segment.
⑧ Fees and commission received on securities business
The fees and commission received on securities business consist mainly of fees and commission
for the sale of beneficiary certificates, and these fees are recognized when the beneficiary
certificates are sold to customers. The business activities relevant to these fees and commission
received on securities business are substantially attributable to Banking and Investment banking
segment.
Other fees are usually fees related to remittances, but include fees related to various other
services provided to customers by the Group. These fees are recognized when transactions occur
at the customers' request and services are provided, at the same time when commission are
received. These other fees occur across all operating segments.
2) Revenues from sources other than contracts with customers
①
Interest income
Interest income on financial assets measured at FVTOCI and financial assets at amortized costs is
measured using the effective interest method.
The effective interest method is a method of calculating the amortized cost of a debt instrument
and of allocating the interest income over the expected life of the asset. The effective interest rate
is the rate that exactly discounts estimated future cash flows to the instrument's initial
unamortized cost over the expected period, or shorter if appropriate. Future cash flows include
commissions and cost of reward points(limited to the primary component of effective interest
rate) and other premiums or discounts that are paid or received between the contractual parties
when calculating the effective interest rate, but does not include expected credit losses. All
contractual terms of a financial instrument are considered when estimating future cash flows.
For purchased or originated credit-impaired financial assets, interest revenue is recognized by
applying the credit-adjusted effective interest rate to the amortized cost of the financial asset
from initial recognition. Even if the financial asset is no longer impaired in the subsequent
periods due to credit improvement, the basis of interest revenue calculation is not changed from
amortized cost to unamortized cost of the financial assets.
② Loan origination fees and costs
The commission fees earned on loans, which is part of the effective interest of loans, is accounted
for as deferred origination fees. Incremental costs related to the origination of loans are
accounted for as deferred origination fees and is being added or deducted to/from interest income
on loans using effective interest rate method.
⑨ Fees and commission from trust management
3) Dividend income
The fees and commission from trust management consist of fees and commission received in
return for the operation and management services for entrusted assets. These operation and
management services are performance obligations satisfied over time, and revenue is recognized
over the service period. Among the fees and commission from trust management, variable
considerations such as profit commission that are affected by the value of entrusted assets and
base return of the future periods are recognized as revenue when limitations to the estimates are
lifted. Most of these fees and commission received for brokerage are from the business activities
relevant to Banking segment.
⑩ Fees and commission received on credit Information
The fees and commission received on credit Information are composed of the fees and
commission received by performing credit investigation and proxy collection services. Credit
investigation fees and commission are the amount received in return for verifying the information
requested by the customer and are recognized as revenue at the time the verification is
completed. Proxy collection service fees are recognized by multiplying the applicable rate to the
collected amount at the time when collection services are completed. Most of these fees and
commission received for brokerage are from the business activities relevant to other segments.
Dividend income is recognized when the right to receive dividends as a shareholder is confirmed.
Dividend income is recognized as an appropriate item of profit or loss in the statement of
comprehensive income according to the classification of financial instruments.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(7) Accounting for foreign currencies
The Group’s consolidated financial statements are presented in Korean Won, which is the functional
currency of the Group. At the end of each reporting period, monetary assets and liabilities denominated in
foreign currencies are translated to the functional currency at its prevailing exchange rates at the date. The
effective portion of the changes in fair value of a derivative that qualifies as a cash flow hedge and the
foreign exchange differences on monetary items that form part of net investment in foreign operations are
recognized in equity.
Assets and liabilities of the foreign operations subject to consolidation are translated into Korean Won at
foreign exchange rates at the end of the reporting period. Except for situations in which it is required to use
exchange rates at the date of transaction due to significant changes in exchange rates during the period, items
that belong to profit or loss shall be measured by average exchange rate, with foreign exchange differences
recognized as other comprehensive income and added to equity (allocated to non-controlling interests, if
appropriate). When foreign operations are disposed, the controlling interest’s share of accumulated foreign
exchange differences related to such foreign operations will be reclassified to profit or loss, while non-
controlling interest’s corresponding share will not be reclassified.
Adjustments to fair value of identifiable assets and liabilities, and goodwill arising from the acquisition of
foreign operations will be treated as assets and liabilities of the corresponding foreign operation, and
translated using foreign exchange rates at the end of the period. The foreign exchange differences are
recognized in other comprehensive income.
(8) Cash and cash equivalents
The Group is classifying cash on hand, demand deposits, interest-earning deposits with original maturities of
up to three months on acquisition date, and highly liquid investments that are readily convertible to known
amounts of cash and subject to an insignificant risk of changes in value as cash and cash equivalents.
(9) Financial assets and financial liabilities
1) Financial assets
A regular way purchase or sale of financial assets is recognized or derecognized on the trade or
settlement date. A regular way purchase or sale is a purchase or sale of a financial asset under a
contract whose term requires delivery of the asset within the time frame established generally by
regulation or convention in the marketplace concerned.
On initial recognition, financial assets are classified into financial assets at FVTPL, financial assets
at FVTOCI, and financial assets at amortized cost according to its business model and contractual
cash flows.
a) Business model
The Group evaluates the way business is being managed, and the purpose of the business model for
managing a financial asset best reflects the way information is provided to the management at its
portfolio level. Such information considers the following:
-
-
-
-
-
The accounting policies and purpose specified for the portfolio, the actual operation of such
policies. This includes strategy of the management focusing on the receipt of contractual
interest revenue, maintaining a certain level of interest income, matching the duration of
financial assets and the duration of corresponding liabilities to obtain the asset, and outflow or
realization of expected cash flows from disposal of assets
The way the performance of a financial asset held under the business model is evaluated, and
the way such evaluation is being reported to the management
The risk affecting the performance of the business model (and financial assets held under the
business model), and the way such risk is being managed
The compensation plan for the management (e.g. whether the management is being
compensated based on the fair value of assets or based on contractual cash flows received)
Frequency, amount, timing and reason for sale of financial assets in the past, and forecast of
future sale activities.
b) Contractual cash flows
The principal is defined to be the fair value of a financial assets at initial recognition. Interest is not
only composed of consideration for the time value of money, consideration for the credit risk
related to remaining principal at a certain period of time, and consideration for other cost (e.g.
liquidity risk and cost of operation) and fundamental risk associated with lending, but also profit.
When evaluating whether contractual cash flows are solely payments of principal and interests, the
Group considers the contractual terms of the financial instrument. When a financial asset contains
contractual conditions that modify the timing and amount of contractual cash flows, it is required to
determine whether contractual cash flows that arise during the remaining life of the financial
instrument due to such contractual condition are solely payments of principal and interest. The
Group considers the following elements when evaluating the above:
-
-
-
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Conditions that lead to modification of timing or amount of cash flows
Contractual terms that adjust contractual nominal interest, including floating rate features
Early payment features and maturity extension features
Contractual terms that limit the Group’s claim on cash flows arising from certain assets (e.g.
non-recourse feature)
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
① Financial assets at FVTPL
2) Financial liabilities
The Group is classifying those financial assets that are not classified as either financial assets at
amortized cost or financial assets at FVTOCI, and those designated to be measured at FVTPL, as
financial assets at FVTPL. Financial assets at FVTPL are measured at fair value, and related
profit or loss is recognized in net income. Transaction costs related to acquisition at initial
recognition is recognized in net income immediately upon its occurrence.
It is possible to designate a financial asset as financial asset at FVTPL if at initial recognition: (a)
it is possible to remove or significantly reduce recognition or measurement mismatch that may
otherwise have occurred if not for its designation as financial asset at FVTPL; (b) the financial
asset forms part of the Group’s financial instrument group (a group composed of a combination
of financial asset or liability), is measured at fair value and is being evaluated for its
performance, and such information is provided internally; and (c) the financial asset is part of a
contract that contains one or more of embedded derivatives, and is a hybrid contract in which
designation as financial asset at FVTPL is allowed under Korean IFRS 1109 Financial
Instruments. However, the designation is irrevocable.
② Financial assets at FVTOCI
When financial assets are held under a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets, and when contractual cash flows
from such financial assets are solely payments of principal and interest, the financial assets are
classified as financial assets at FVTOCI. Also, for investments in equity instruments that are not
held for short-term trade, an irrevocable election is available at initial recognition to present
subsequent changes in fair value as other comprehensive income.
At initial recognition, financial assets at FVTOCI is measured at its fair value plus any direct
transaction cost, and is subsequently measured in fair value. However, for equity instruments that
do not have a quotation in an active market and in which fair value cannot be measured reliably,
they are measured at cost. The income tax effects related to the changes in fair value except for
profit or loss items such as impairment losses (reversals), interest revenue calculated by using
effective interest method, and foreign exchange gain or loss about debt instrument are recognized
as other comprehensive income until the asset’s disposal. Upon derecognition, the accumulated
other comprehensive income is reclassified from equity to net income for FVTOCI (debt
instrument), and reclassified within the equity for FVTOCI (equity instruments).
At initial recognition, financial liabilities are classified into either financial liabilities at FVTPL or
financial liabilities at amortized cost.
Financial liabilities are usually classified as financial liabilities at FVTPL when they are acquired
with a purpose to repurchase them within a short period of time, when they are part of a certain
financial instrument portfolio that is actually and recently being managed with a purpose of short-
term profit and joint management by the Group at initial recognition, and when they are derivatives
that do not qualify as hedging instruments. Financial liabilities at FVTPL are measured at fair value
plus direct transaction cost at initial recognition, and are subsequently measured at fair value. Profit
or loss arising from financial liabilities at FVTPL is recognized in net income when occurred.
It is possible to designate a financial liability as financial liability at FVTPL if at initial recognition:
(a) it is possible to remove or significantly reduce recognition or measurement mismatch that may
otherwise have occurred if not for its designation as financial liability at FVTPL; (b) the financial
asset forms part of the Group’s financial instrument group (a group composed of a combination of
financial asset or liability) according to the Group’s documented risk management or investment
strategy, is measured at fair value and is being evaluated for its performance, and such information
is provided internally; and (c) the financial liability is part of a contract that contains one or more of
embedded derivatives, and is a hybrid contract in which designation as financial liability at FVTPL
is allowed under Korean IFRS 1109 Financial Instruments.
Financial liabilities designated as at FVTPL are initially recognized at fair value, with any direct
transaction cost recognized in profit or loss, and are subsequently measured at fair value. Any profit
or loss from financial liabilities at FVTPL are recognized in profit or loss.
Financial liabilities not classified as financial liabilities at FVTPL are measured at amortized cost.
The Group is classifying liabilities such as deposits due to customers, borrowings and debentures as
financial liabilities at amortized cost.
3) Reclassification
Financial assets are not reclassified after initial recognition unless the Group modifies the business
model used to manage financial assets. When the Group modifies the business model used to
manage financial assets, all affected financial assets are reclassified on the first day of the first
reporting period after the modification.
③ Financial assets at amortized cost
4) Derecognition
When financial assets are held under a business model whose objective is to hold financial assets
in order to collect contractual cash flows, and when contractual cash flows from such financial
assets are solely payments of principal and interest, the financial assets are classified as financial
assets at amortized cost. At initial recognition, financial assets at amortized cost are recognized at
fair value plus any direct transaction cost. Financial assets at amortized cost is presented at
amortized cost using effective interest method, less any loss allowance.
Financial assets are derecognized when contractual rights to cash flows from the financial assets are
expired, or when substantially all of risk and reward for holding financial assets is transferred to
another entity as a result of a sale of financial assets. If the Group does not have and does not
transfer substantially all of the risk and reward of holding financial assets with control of the
transferred financial assets retained, the Group recognizes financial assets to the extent of its
continuing involvement. If the Group holds substantially all the risk and reward of holding a
financial asset, it continues to recognize that asset and proceeds are accounted for as collateralized
borrowings.
When a financial asset is fully derecognized, the difference between the book value and the sum of
proceeds and accumulated other comprehensive income is recognized as profit or loss in case of
FVTOCI (debt instruments), and as retained earnings for FVTOCI (equity instruments).
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
In case when a financial asset is not fully derecognized, the Group allocates the book value into
amounts retained in the books and removed from the books, based on the relative fair value of each
portion at the date of sale, and based on the degree of continuing involvement. For the derecognized
portion of the financial assets, the difference between its book value and the sum of proceeds and
the portion of accumulated other comprehensive income attributable to that portion will be
recognized in profit or loss in case of debt instruments and recognized in retained earnings in case
of equity instruments. The accumulated other comprehensive income is distributed to the portion of
book value retained in the books, and to the portion of book value removed from the books.
The Group derecognizes financial liabilities when, and only when, the Group’s obligations are
discharged, cancelled or have expired. The difference between the carrying amount of the financial
liability derecognized and the consideration paid and payable is recognized in profit or loss.
When the Group exchanges with the existing lender one debt instrument into another one with the
substantially different terms, such exchange is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability. Similarly, the Group accounts for
substantial modification of terms of an existing liability or part of it as an extinguishment of the
original financial liability and the recognition of a new liability. It is assumed that the terms are
substantially different if the discounted present value of the cash flows under the new terms,
including any fees paid net of any fees received and discounted using the original effective rate is at
least 10 percent different from the discounted present value of the remaining cash flows of the
original financial liability.
5) Fair value of financial instruments
Financial assets at FVTPL and financial assets at FVTOCI are measured and presented in
consolidated financial statements at their fair values, and all derivatives are also subject to fair value
measurement.
Fair value is defined as the price that would be received to exchange an asset or paid to transfer a
liability in a recent transaction between independent parties that are reasonable and willing. Fair
value is the transaction price of identical financial assets or financial liabilities generated in an
active market. An active market is a market where trade volume is sufficient and objective price
information is available due to the fact that bid and ask price differences are small.
When trade volume of a financial instrument is low, when transaction prices within the market
show large differences among them, or when it cannot be concluded that a financial instrument is
being traded within an active market due to disclosures being extremely shallow, fair value is
measured using valuation techniques based on alternative market information or using internal
valuation techniques based on general and observable information obtained from objective sources.
Market information includes maturity and characteristics, duration, similar yield curve, and
variability measurement of financial instruments of similar nature. Fair value amount contains
unique assumptions on each entity (the Group concluded that it is using assumptions applied in
valuing financial instruments in the market, or risk-adjusted assumptions in case marketability does
not exist).
The market approach and income approach, which are valuation techniques used to estimate the fair
value of financial instruments, both require significant judgment. Market approach measures fair
value using either a recent transaction price that includes the financial instrument, or observable
information on comparable firm or assets. Income approach measures fair value through
discounting future cash flows with a discount rate reflecting market expectations, and revenue,
operating income, depreciation, capital expenditures, income tax, working capital and estimated
residual value of financial investments are being considered when deriving future cash flows.
Valuation techniques such as the above include estimates based on the financial instruments’
complexity and usefulness of observable information in the market.
The valuation techniques used in the evaluation of financial instruments are explained below.
a) Financial assets at FVTPL and Financial assets at FVTOCI
The fair value of equity securities included in financial assets at FVTPL and financial assets at
FVTOCI category is recognized in the statement of financial position at its available market price.
Debt securities traded in the over-the-counter market are generally recognized at an amount
computed by an independent appraiser. When the Group uses the fair value determined by
independent appraisers, the Group usually obtains three values from three different appraisers for
each financial instrument, and selects the minimum amount without making additional adjustments.
For equity securities without marketability, the Group uses the amount determined by the
independent appraiser. The Group verifies the prices obtained from appraisers in various ways,
including the evaluation of independent appraisers’ competency, indirect verification through
comparison between appraisers’ price and other available market information, and reperformed by
employees who have knowledge of valuation models and assumptions that appraisers used.
b) Derivatives
The Group’s transactions involving derivatives such as futures and exchange traded options are
measured at market value. For exchange traded derivatives classified as level 2 in the fair value
hierarchy, the fair value is estimated using internal valuation techniques. If there are no publicly
available market prices because they are traded over-the-counter, fair value is measured through
internal valuation techniques. When using internal valuation techniques to derive fair value, the
types of derivatives, base interest rate or characteristics of prices, or stock market indices are
considered. When variables used in the internal valuation techniques are not observable information
in the market, such variables may contain significant estimates.
c) Adjustment of valuation amount
The Group is exposed to credit risk when a counterparty to a derivative contract does not perform
its contractual obligation, and the exposure amount is equal to the amount of derivative asset
recognized in the statement of financial position. When the Group earns income through valuation
of derivatives, such income is recognized as derivative asset in the statement of financial position.
Some of the derivatives are traded in the market, but most of the derivatives are measured at
estimated fair value derived from internal valuation models that use observable information in the
market. As such, in order to estimate the fair value there should be an adjustment made to
incorporate counterparty’s credit risk, and credit risk adjustment is being considered when valuing
derivative assets such as over-the counter derivatives. The amount of financial liabilities is also
adjusted by the Group’s own credit risk when valuing them.
The amount of adjustment is derived from counterparty’s probability of default and loss given
default. This adjustment considers contractual matters that are designed to reduce the Group’s
exposure to each counterparty’s credit risk. When derivatives are under master netting arrangement,
the exposure used in the computation of credit risk adjustment is a net amount after
adding/deducting cash collateral received (or paid) from loss(or gain) position derivatives with the
same counterparty.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
6) Expected credit losses on financial assets
(10) Offsetting financial instruments
The Group recognizes loss allowance on expected credit losses for the following assets:
-
Financial assets at amortized cost
- Debt instruments measured at FVTOCI
-
Contract assets as defined by Korean IFRS 1115
Expected credit losses are weighted-average value of a range of possible results, considering the
time value of money, and are measured by incorporating information on current conditions and
forecasts of future economic conditions that are available without undue cost or effort.
The methods to measure expected credit losses are classified into following three categories in
accordance with Korean IFRS:
- General approach: Financial assets that does not belong to below two models and unused loan
commitments
Simplified approach: When financial assets are either trade receivables, contract assets or lease
receivables
Credit impairment model: Purchased or originated credit-impaired financial assets
-
-
The measurement of loss allowance under general approach is differentiated depending on whether
the credit risk has increased significantly after initial recognition. That is, loss allowance is
measured based on 12-month expected credit loss when the credit risk has not increased
significantly after initial recognition, while loss allowance is measured at lifetime expected credit
loss when credit risk has increased significantly. Lifetime is the expected remaining life of the
financial instrument up to the maturity date of the contract.
The measurement of loss allowance under simplified approach is always based on lifetime expected
credit loss, and loss allowance under credit impairment model is measured as the cumulative change
in lifetime expected credit loss since initial recognition.
a) Measurement of expected credit losses on financial asset at amortized cost
The expected credit losses on financial assets at amortized cost is measured by the difference
between the contractual cash flows during the period and the present value of expected cash flows.
Expected cash inflows are computed for individually significant financial assets in order to
calculate expected credit losses.
When financial assets that are not individually significant, they are included in a group of financial
assets with similar credit risk characteristics and expected credit losses of the group are calculated
collectively.
Expected credit losses are deducted through loss allowance account, and when the financial asset is
determined to be uncollectible, the loss allowance is written off from the books along with the
related financial asset.
b) Measurement of expected credit losses on financial asset at FVTOCI
The measurement method of expected credit loss is identical to financial asset at amortized cost, but
changes in the loss allowance is recognized in other comprehensive income. When financial assets
at FVTOCI is disposed or repaid, the related loss allowance is reclassified from accumulated other
comprehensive income to net income.
Financial assets and liabilities are presented as a net amount in the statements of financial position when the
Group has an enforceable legal right and an intention to settle on a net basis or to realize an asset and settle
the liability simultaneously.
(11) Investment properties
The Group classifies a property held to earn rentals and/or for capital appreciation as an investment property.
Investment properties are measured initially at cost, including transaction costs, less subsequent depreciation
and impairment.
Subsequent costs are included in the carrying amount of the asset or recognized as a separate asset if it is
probable that future economic benefits associated with the assets will flow into the Group and the cost of an
asset can be measured reliably, and the book value of a portion of an asset that are replaced by a subsequent
expenditure is removed from the books. Routine maintenance and repairs are expensed as incurred.
While land is not depreciated, all other investment properties are depreciated based on the depreciation
method and useful lives of premises and equipment. The estimated useful lives, residual values and
depreciation method are reviewed at the end of each reporting period, and when it is deemed appropriate to
change them, the effect of any change is accounted for as a change in accounting estimates.
An investment property is derecognized from the consolidated financial statements on disposal or when it is
permanently withdrawn from use and no future economic benefits are expected even from its disposal. The
gain or loss on the derecognition of an investment property is calculated as the difference between the net
disposal proceeds and the carrying amount of the property and is recognized in profit or loss in the period of
the derecognition.
(12) Premises and equipment
Premises and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
The cost of an item of premises and equipment is expenditure directly attributable to their purchase or
construction, which includes any cost directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management. It also includes the initial
estimate of costs of dismantling and removing the item and restoring the site on which it is located.
Subsequent costs are recognized in the carrying amount of an asset or as a separate asset (if appropriate) if it
is probable that future economic benefit associated with the assets will flow into the Group and the cost of an
asset can be measured reliably. Routine maintenance and repairs are expensed as incurred.
While land is not depreciated, for all other premises and equipment, depreciation is charged to net income on
a straight-line basis by applying the following estimated economic useful lives on the amount of cost or
revalued amount less residual value.
Buildings used for business purpose
Structures in leased office
Properties for business purpose
Useful life
35 to 57 years
4 to 5 years
4 to 5 years
The Group reassesses the depreciation method, the estimated useful lives and residual values of premises and
equipment at the end of each reporting period. If changes in the estimates are deemed appropriate, the
changes are accounted for as a change in an accounting estimate. When there is an indicator of impairment
and the carrying amount of a premises and equipment item exceeds the estimated recoverable amount, the
carrying amount of such asset is reduced to the recoverable amount.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(13) Intangible assets and goodwill
(15) Leases
The Group recognizes the acquisition cost of an intangible asset as the manufacturing cost or purchase cost
plus additional incidental expenses. Development costs are the sum of expenditures incurred after the asset
recognition requirements, such as technical feasibility and future economic benefits, are met. After the initial
recognition, the carrying value is presented as the accumulated amortization and accumulated impairment
losses deducted from the cost.
The Group’s intangible asset are amortized over the following economic lives using the straight-line method.
However, for some intangible assets, the period of time that is expected to be available is not predictable, so
the useful life of some intangible assets is assessed as indefinite and not depreciated.
The estimated useful life and amortization method of intangible assets with a finite useful life are reviewed at
the end of each reporting period. The estimated useful life and amortization method of intangible assets with
an indefinite useful life are reviewed at the end of each reporting period to ensure that the asset has an
indefinite useful life. If changes in the estimates are deemed appropriate, the changes are accounted for as a
change in an accounting estimate.
Industrial property rights
Development costs
Software and others
Useful life
10 years
5 years
1 to 10 years
In addition, when an indicator that intangible assets are impaired is noted, and the carrying amount of the
asset exceeds the estimated recoverable amount of the asset, the carrying amount of the asset is reduced to its
recoverable amount.
Goodwill acquired in a business combination is included in intangible assets. Goodwill is not amortized, but
is subject to an impairment test at the cash-generating unit level every year, and whenever there is an
indicator that goodwill is impaired.
Goodwill is allocated to each of the Group’s cash-generating unit (or groups of cash-generating units) that is
expected to benefit from the synergies of the combination. If the recoverable amount of the cash-generating
unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of
any goodwill allocated to the unit and then to the other assets of the unit on a pro rata basis based on the
carrying amount of each asset in the unit. Any impairment loss for goodwill is recognized directly in profit or
loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.
(14) Impairment of non-monetary assets
Intangible assets with indefinite useful lives or intangible assets that are not yet available for use are tested
for impairment annually, regardless of whether there is any indication of impairment. All other assets are
tested for impairment by estimating the recoverable amount when there is an objective indication that the
carrying amount may not be recoverable. Recoverable amount is the higher of value in use or net fair value,
less costs to sell. If the recoverable amount of an asset is estimated to be less than its carrying amount, the
carrying amount of the asset is reduced to its recoverable amount and such impairment loss is recognized
immediately in net income.
The Group determines whether the contract is a lease or includes a lease at the time of the contract
agreement. In exchange for consideration in a contract, the contract is either a lease or includes a lease if the
control over the use of the identified asset is transferred for a period of time. In determining whether a
contract transfers control over the use of the asset to which it is identified, the Group uses the definition of
lease in Korean IFRS 1116.
① The Group as a lessee
The Group recognizes the right-of-use asset and the lease liability at the commencement date of
the lease. The right-of-use asset is measured at cost, which comprises the amount of the initial
measurement of the lease liability, lease payments made at or before the commencement date(less
any lease incentives received), initial direct costs, and an estimate of costs to be incurred by the
lessee in dismantling and removing the underlying asset, restoring the site on which it is located.
The right-of-use asset is subsequently depreciated on a straight-line basis from the commencement
of the lease to the end of the lease term. However, if the lease transfers ownership of the underlying
asset to the lessee by the end of the lease term or if the cost of the right-of-use asset reflects that
the lessee will exercise a purchase option, the lessee depreciates the right-of-use asset same as a
fixed asset from the commencement date to the end of the useful life of the underlying asset. The
right-of-use asset may be reduced by an impairment of the underlying asset or adjusted by
remeasurement of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid
at that date. The lease payments are discounted using the interest rate implicit in the lease, if that
cannot be readily determined, the Group uses its incremental borrowing rate. The Group generally
uses the incremental borrowing rate.
The Group makes adjustments to reflect the terms of the lease and the characteristics of the lease
asset in interest rates obtained from external financial information, and calculates the incremental
borrowing rate.
The Group calculates the lease term by including the relevant period when it is quite certain that
the lessee will exercise the extension option or the termination option. The Group calculates the
enforceable period in consideration of the economic disadvantages of terminating the contract if
the lessee and the lessor have the right to terminate it without the consent of the other parties.
The lease payments included in the measurement of the lease liability comprise the following:
-
- Variable lease payments that depend on an index(or a rate), initially measured using the index
Fixed payments (including in-substance fixed payments)
or rate as at the commencement date
- Amounts expected to be payable by the lessee under residual value guarantees
- The exercise price of a purchase option if the lessee is reasonably certain to exercise that option,
lease payments of the extended period if the lessee is reasonably certain to exercise extension
option, and payments of penalties for terminating the lease, if the lease term reflects the lessee
exercising an option to terminate the lease
The lease liability is subsequently increased be the interest expense recognized for the lease
liability and decreased by reflecting the payment of the lease payments. The lease liability is
remeasured if the future lease payments change depending on changes in the index(or a rate),
changes in the expected amount to be paid under the residual value guarantee, and changes in the
assessment of whether the purchase or extension option is reasonably certain to be exercised or not
to exercise the terminate option.
When remeasuring a lease liability, the related right-of-use asset is adjusted and if the carrying
amount of the right-of-use asset decreases to zero, the remeasurement amount is recognized in
profit or loss.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
The Group applies its judgment when determining the lease term for some lease contracts that
include the extension option. The assessment of whether the Group is reasonably certain to
exercise the option significantly affects the lease term and therefore has a significant impact on
the amount of lease liabilities and the right-of-use asset.
Because the Group can replace the asset without significant cost or business discontinuation, the
option to extend the lease is not included in the lease liability in most offices and vehicle
transport leases.
The Group reevaluates the lease term when the option is exercised (or not exercised) or the
Group is liable to exercise (or not exercise) the option. Group will change its judgment only
when significant events occur that affect the lessee's control and the determination of the lease
term, or there is a significant change in the circumstances.
Lease liabilities and right-of-use-asset increased by 15,810 million won, reflecting the exercise
impact of the extension and termination options during the current term.
In the statement of financial position, the Group classified the right-of-use assets that do not meet
the definition of investment property as ‘premises and equipment’ and the lease liabilities as
‘other financial liabilities.’
The Group has chosen a practical expedient that does not recognize the right-of-use asset and
lease liabilities for short-term leases with a lease term less than 12 months and leases for which
the underlying asset is of low value. The Group recognizes the lease payments associated with
those leases as an expense on a straight-line basis over the lease term.
② The Group as a lessor
At the date of the agreement or the effective date of the modification containing the lease
element, the Group allocates the consideration of the contract to each lease element based on its
relative stand-alone price.
As a lessor, the Group classifies its leases as either a finance lease or an operating lease at the
commencement date.
The Group subsequently judges whether the lease transfers substantially all the risks and rewards
incidental to ownership of an underlying asset. A lease is classified as a finance lease if it
transfers substantially all the risks and rewards incidental to ownership of an underlying asset,
otherwise a lease is classified as an operating lease.
If the agreement contains both lease and non-lease elements, the Group applies Korean IFRS
1115 to allocate the consideration of the contract.
The Group applies the derecognition and impairment provisions of Korean IFRS 1109 to its net
investment in the lease. The Group also carries out regular review of the unguaranteed residual
value used to calculate total lease investment.
The Group recognizes lease payments from operating lease as income on a straight-line basis.
The accounting policy that the Group has applied as a lessor is not different from Korean IFRS
1116.
(16) Derivative instruments
Derivative instruments are classified as forwards, futures, options and swaps, depending on the types of
transactions and are classified at the point of transaction as either trading or hedging based on its purpose.
Derivatives are initially recognized at fair value at the date of contract and are subsequently measured at fair
value at the end of each reporting period. The resulting gain or loss is recognized in net income immediately
unless the derivative is designated or effective as a hedging instrument. If derivatives have been designated
as hedging instruments and if it is effective, the point of recognition of gain or loss depends on the
characteristics of hedging relationship.
Derivatives that have positive (+) fair values are recognized as financial assets and those that have negative
(-) fair values are recognized as financial liabilities. Derivatives are not offset in the consolidated financial
statements unless they have legally enforceable right to set off or are intended to set off.
1) Embedded derivatives
Embedded derivatives are components of a hybrid financial instrument that includes a non-
derivative host contract. It has an effect of modifying part of cash flows of the hybrid financial
instrument similar to an independent derivative.
Embedded derivatives that are part of a hybrid contract of which the host contract is a financial
asset within the scope of Korean IFRS 1109 are not separated. The classification is done by
considering the hybrid contract as a whole, and subsequent measurement is either at amortized cost
or fair value.
If embedded derivatives are part of a hybrid contract of which the host contract is not a financial
asset within the scope of Korean IFRS 1109 (e.g. financial liability), then these are treated as
separate derivatives if embedded derivatives meet the definition of a derivative, characteristics &
risk of the embedded derivatives are not closely related to that of host contract, and if the host
contract is not measured at FVTPL.
2) Hedge accounting
The Group is applying Korean IFRS 1109 in regard to hedge accounting. The Group is designating
certain derivatives as hedging instrument against fair value changes in relation to the interest rate
risk, foreign currency translation and interest rate risk, and foreign currency translation risk.
The Group is documenting the relationship between hedging instruments and hedged items at the
commencement of hedging in accordance with their purpose and strategy. Also, the Group
documents at the commencement and subsequent dates whether the hedging instrument effectively
counters the changes in fair value of hedged items. A hedging instrument is effective only when it
meets all the following criteria:
When there is an economic relationship between the hedged items and hedging instruments.
When the effect of credit risk is not stronger than the change in value due to the economic
relationship between the hedged items and hedging instruments.
When the hedge ratio of hedging relationship is equal to the proportion of the number of items that
the group actually hedges and the number of hedging instruments that the Group actually uses to
hedge the number of hedged items.
When a hedging relationship no longer meets the hedging effectiveness requirements related to
hedge ratio, but when the purpose of risk management on designated hedging relationship is still
maintained, the hedge ratio of the hedging relationship is adjusted so that hedging relationship may
meet the requirements again (Hedge ratio readjustment).
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The Group has designated derivatives as hedging instrument except for the portion on foreign
currency basis spread. The fair value change due to foreign currency basis spread is recognized in
other comprehensive income and is accumulated in equity. If the hedged item is related to
transactions, the accumulated other comprehensive income is reclassified to profit or loss when the
hedged item affects the profit or loss. However, when non-monetary items are subsequently
recognized due to hedged items, the accumulated equity is removed from the equity directly, and is
included in the initial book value of the recognized non-monetary items. Such transfers does not
affect other comprehensive income. But if part or all of accumulated equity is not expected to be
recovered in the future periods, the amount not expected to be recovered is immediately reclassified
to profit or loss. If the hedged item is time-related, then the foreign currency basis spread on the day
the derivative is designated as a hedging instrument that is related to the hedged item is reclassified
to profit or loss over the term of the hedge.
3) Fair value hedge
Gain or loss arising from valid hedging instrument is recognized in profit or loss. However, when
the hedging instrument mitigates risks on equity instruments designated as financial assets at
FVTOCI, related gain or loss is recognized in other comprehensive income.
The book value of hedged items that are not measured in fair value is adjusted by the changes in fair
value arising from the hedged risk, with resulting gain or loss reflected in net income. In case of
debt instruments measured at FVTOCI, book value is an amount that is already adjusted to fair
value and thus gain or loss arising from the hedged risk is recognized in profit or loss instead of
other comprehensive income without adjustments in book value. When the hedged item is equity
instruments measured at FVTOCI, the gain or loss arising from hedged risk is retained at other
comprehensive income in order to match the gain or loss with hedging instruments.
When gains or losses arising from the hedged risk are recognized in profit or loss of the current
term, they are recognized as items related to the hedged items.
Hedge accounting ceases to apply only when hedging relationship (or part of it) does not meet the
requirements of hedge accounting (even after hedging relationship readjustment, if applicable). This
treatment holds in case of lapse, disposal, expiry and exercise of hedging instruments, and this
cease of treatment applies prospectively. The fair value adjustments made to book value of hedged
item due to hedged risk is amortized from the date of discontinuance of hedge accounting and is
recognized in profit or loss.
4) Cash flow hedge
The Group recognizes the effective portion of changes in the fair value of derivatives and other
valid hedging instruments that are designated and qualified as cash flow hedges in other
comprehensive income to the extent of cumulative fair value changes of the hedged item from the
starting date of hedge accounting and it is cumulated in the cash flow hedge reserve. The gain or
loss relating to the ineffective portion is recognized immediately in net income.
Amounts previously recognized in other comprehensive income and accumulated in equity are
reclassified to net income when the hedged item affects net income. However, when non-monetary
assets or liabilities are subsequently recognized due to expected transactions involving hedged
items, the valuation gain or loss accumulated in the equity as other comprehensive income is
removed from the equity and included in the initial book value of the recognized non-monetary
assets or liabilities. Such transfers does not affect other comprehensive income. Also, if the cash
flow hedge reserve is loss and accumulated other comprehensive income is a loss and part or all of
the losses are not expected to be recovered in the future periods, the said amount is immediately
reclassified to profit or loss.
Hedge accounting ceases to apply only when hedging relationship (or part of it) does not meet the
requirements of hedge accounting (even after hedging relationship readjustment, if applicable). This
treatment holds in case of lapse, disposal, expiry and exercise of hedging instruments, and this
cease of treatment applies prospectively. At the point of cessation of cash flow hedge, the valuation
gain or loss recognized as accumulated other comprehensive income continues to be recognized as
equity, and is reclassified to profit or loss when the expected transaction is ultimately recognized as
profit or loss. However, when transactions are no longer expected to occur, the valuation gain or
loss of hedging instrument recognized as accumulated other comprehensive income is immediately
reclassified to profit or loss.
(17) Assets (or disposal group) held for sale
The Group classifies a non-current asset (or disposal group) as held for sale if its carrying amount will be
recovered principally through a sale transaction rather than through continuing use. Non-current assets (and
disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and
fair value less costs to sell.
(18) Provisions
Provisions are recognized if it has present or contractual obligations as a result of the past event, it is
probable that an outflow of resources will be required to settle the obligation and the amount of the obligation
is reliably estimated. A provision is not recognized for the future operating losses.
The Group recognizes provisions related to the payment guarantees, loan commitment and litigations. Under
the terms of lease agreement, the cost incurred by the Group to recover the leased asset to its original state
are recognized as provisions at the commencement of the lease or during a specific period in which the
obligation is incurred as a result of the using the asset. The provisions are measured as the best estimate of
the expenditure required to recover the asset, which is regularly reviewed and sated to the new situation.
Where there are a number of similar obligations, the probability that an outflow will be required in settlement
is determined by considering the obligations as a whole. Although the likelihood of outflow for any one item
may be small, if it is probable that some outflow of resources will be needed to settle the obligations as a
whole, a provision is recognized.
At the end of each reporting period, the remaining provision balance is reviewed an assessed to determine if
the current best estimate is being recognized.
(19) Equity instruments issued by the Group
1) Capital and compound financial instruments
The Group classifies a financial instrument that it issues as a financial liability or an equity
instrument in accordance with the substance of the contractual arrangement. A financial liability is a
contractual obligation to deliver cash or another financial asset to another entity. An equity
instrument is any contract that evidences a residual interest in the assets of an entity after deducting
all of its liabilities. The compound financial instruments are financial instruments where it is neither
a financial liability nor an equity instrument because it was designed to contain both equity and debt
elements.
If the Group reacquires its own equity instruments, the consideration paid including the direct
transaction costs (net of tax expense) are presented as a deduction from total equity until such
instruments are retired or reissued. When these instruments are reissued, the consideration received
(net of direct transaction costs) is included in the shareholder’s equity.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
2) Hybrid securities
(22) Income taxes
The Group classifies hybrid securities that have the unconditional right to avoid contractual
obligations, such as to deliver cash or other financial assets in relation to financial instruments into
equity instruments and presents as part of equity. Meanwhile, hybrid securities issued by
subsidiaries of the group are classified as non-controlling interests according to the criteria, and the
distribution paid is treated as net profit attributable to non-controlling interests in the consolidated
comprehensive income statement.
(20) Financial guarantee contracts
A financial guarantee contract is a contract where the issuer must pay a certain amount of money in order to
compensate losses suffered by the creditor when debtor defaults on a debt instrument in accordance with
original or modified contractual terms.
A financial guarantee is initially measured at fair value and is subsequently measured at the higher of the
amounts below unless it is designated to be measured at FVTPL or when it arises from disposal of an asset.
-
-
Loss allowance in accordance with Korean IFRS 1109
Initial book value less accumulated profit measured in accordance with Korean IFRS 1115
(21) Employee benefits and pensions
The Group recognizes the undiscounted amount of short-term employee benefits expected to be paid in
exchange for the services rendered by the employees. Also, the Group recognizes expenses and liabilities in
the case of accumulating compensated absences when the employees render services that entitle their right to
future compensated absences. Similarly, the Group recognizes expenses and liabilities for customary profit
distribution or bonuses when the employees render services, even though the Group does not have legal
obligation to do so because it can be construed as constructive obligation.
The Group is operating defined contribution plans and defined benefit plans. Contributions to defined
contribution plans are recognized as an expense when employees have rendered services entitling them to
receive the benefits. For defined benefit plans, the defined benefit liability is calculated through an actuarial
assessment using the projected unit credit method every end of the reporting period, conducted by a
professional actuaries. Remeasurement, comprising actuarial gains and losses, the return on plan assets
(excluding the amount included in net interest from net defined benefit liability (asset)), and the effect of the
changes to the asset ceiling is reflected immediately in the separate statement of financial position with a
charge or credit recognized in other comprehensive income in the period in which they occur.
Remeasurement recognized in the consolidated statement of comprehensive income is not reclassified to
profit or loss in the subsequent periods. Past service cost is recognized in profit or loss in the period of a plan
amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net
defined benefit liability or asset. Defined benefit costs are composed of service cost (including current
service cost and past service cost, as well as gains and losses on settlements), net interest expense (income)
and remeasurement.
The Group presents the service cost and net interest expense (income) components in profit or loss, and the
remeasurement component in other comprehensive income. Curtailment gains and losses are accounted for as
past service costs.
The retirement benefit obligation recognized in the consolidated statement of financial position represents the
actual deficit or surplus in the Group’s defined benefit plans. Any surplus resulting from this calculation is
recognized as an asset limited to the present value of any economic benefits available in the form of refunds
from the plans or reductions in future contributions to the plans.
Liabilities for termination benefits are recognized at the earlier of either the date when the Group is no longer
able to cancel its proposal for termination benefits or the date when the Group has recognized the cost of
restructuring that accompanies the payment of termination benefits.
Income tax expense is composed of current tax and deferred tax. That is, income tax expense is composed of
taxes payable or refundable during the period and deferred taxes calculated by applying asset-liability method
to taxable and deductible temporary differences arising from operating loss and tax credit carryforwards.
Temporary differences are the differences between the carrying values of assets and liabilities for financial
reporting purposes and their tax bases. Deferred income tax benefit or expense is recognized for the change
in deferred tax assets or liabilities. Deferred tax assets and liabilities are measured as of the reporting date
using the enacted or substantively enacted tax rates expected to apply in the period in which the liability is
settled or asset is realized. Deferred tax assets, including the carryforwards of unused tax losses, are
recognized to the extent it is probable that the deferred tax assets will be realized.
Deferred income tax assets and liabilities are offset if, and only if, the Group has a legally enforceable right
to offset current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority or when the entity intends to settle current tax liabilities
and assets on a net basis with different taxable entities.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset
to be recovered.
Deferred liabilities are not recognized if the temporary difference arises from the initial recognition of
goodwill. Deferred tax assets or liabilities are not recognized if they arise from the initial recognition (other
than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable
profit nor the accounting profit.
Current and deferred taxes are recognized in profit or loss, except when they relate to items that are
recognized in other comprehensive income or directly in equity or when it arises from business combination.
The tax uncertainty arises from the compensation claim filed by the Group, and refund litigation for the
amount of tax levied by the tax authority due to differences in tax law analysis. In response, the Group paid
taxes in accordance with Korean IFRS 2123 due to the tax authority’s claim, but recognized as a corporate
tax asset if it is highly probable of a refund in the future. In addition, the Group appropriately estimates and
reflects the amount of corporate tax liabilities based on the analysis of corporate tax laws and the evaluation
of many factors, including past experiences.
(23) Criteria of calculating earnings per share (“EPS”)
Basic EPS is a calculation of net income per each common stock. It is calculated by dividing net income
attributable to ordinary shareholders by the weighted-average number of common shares outstanding. Diluted
EPS is calculated by adjusting the earnings and number of shares for the effects of all dilutive potential
common shares.
(24) Share-based payment
For cash-settled share-based payment transactions that provide cash in return for the goods or services received,
the Group measures the goods or services received, and the corresponding liability at the fair value and
recognizes as employee benefit expenses and liabilities during the vesting period. The fair value of the liability
is remeasured at the end of each reporting period and the settlement date until the liability is settled, and changes
in fair value are recognized as employee benefits.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
3. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS
(1) Income taxes
The outbreak of COVID-19 in 2020 has had a significant impact on the global economy including Korea.
Financial and economic shocks may have negative impacts on the Group's financial condition and results of
operations in various forms both domestically and internationally, however, the Korean government is
providing unprecedented financial and economic relief measures such as extension of maturity of loan
receivables. Despite the announcement of these various forms of government support policies, the negative
impact of the COVID-19 on the global economy continues.
Significant changes have been made in future forecast information affecting expected credit losses for the
period ended December 31, 2020, and major economic factors are expected to remain negative for a
considerable period of time after 2020 due to the influence of COVID-19, and uncertainties in recovery or
deterioration will persist.
Considering this situation comprehensively, the Group updated the forward-looking information used to
estimate expected credit losses in accordance with Korean IFRS 1109 Financial Instruments by changing
major variables such as GDP to reflect the impact of COVID-19, which has brought a global economic
recession. The Group also reflected the effect of deferred loan principal/interest due to COVID-19.
The Group determined that the credit risk of loans affected by the loan deferment has significantly increased;
and evaluated that the possibility of default is high. As a result, total loans (Loan receivables, payment
guarantees) that are subject to loan deferment and interest deferment amount to 1,820,324 million won, and
loan allowances have increased for 219,231 million won which consist of increases of corporate loan
allowance for 210,173 million won and retail loan allowance for 9,058 million won.
Total loans (Loan receivables, payment guarantees) that are subject to loan deferment and interest deferment
are consist of corporate loan of 1,697,899 million won and retail loan of 122,425 million won. Among total
loans, loans changed its stage from 12-month to lifetime (Stage 2) expected credit losses amount to 1,650,526
million won, which consist of corporate loan of 1,548,805 million won and retail loan of 101,721 million
won. The Group will continue to assess the adequacy of forward-looking information related to the duration
of the impact of COVID-19 on economy and government policies.
As of December 31, 2020, Woori Card has 9,136 million won in financial assets at amortized cost related to
borrowers eligible for financial support, and the additional provision is 196 million won.
< Woori Financial Capital and Woori Financial Group>
Woori Financial Capital and Woori Financial Group increased their expected credit loss allowance by 18,457
million won and 8,701 million won, respectively.
The significant accounting estimates and assumptions are continuously being evaluated based on numerous
factors including historical experiences and expectations of future events considered to be reasonably
possible. Actual results can differ from those estimates based on such definitions. The accounting estimates
and assumptions that contain significant risk of materially changing current book values of assets and
liabilities in the next accounting periods are as follows:
The Group has recognized current and deferred taxes based on best estimates of expected future income tax
effect arising from the Group’s operations until the end of the current reporting period. However, actual tax
payment may not be identical to the related assets and/or liabilities already recognized, and these differences
may affect current taxes and deferred tax assets/liabilities at the time when income tax effects are finalized.
Deferred tax assets relating to tax losses carried forward and deductible temporary differences are recognized
only to the extent that it is probable that future taxable profit will be available against which the tax losses
carried forward and the deductible temporary differences can be utilized. In this case the Group’s evaluation
considers various factors such as estimated future taxable profit based on forecasted operating results, which
are based on historical financial performance. The Group is reviewing the book value of deferred tax assets
every end of the reporting period and in the event that the possibility of earning future taxable income
changes, the deferred tax assets are adjusted up to taxable income sufficient to use deductible temporary
differences.
(2) Valuation of financial instruments
Financial assets at FVTPL and FVTOCI are recognized in the consolidated financial statements at fair value.
All derivatives are measured at fair value. Valuation techniques are required in order to determine fair values
of financial instruments where observable market prices do not exist. Financial instruments that are not
actively traded and have low price transparency will have less objective fair value and require broad
judgment in liquidity, concentration, uncertainty in market factors and assumption in price determination and
other risks.
As described in 2. Basis of Preparation and Significant Accounting Policies (9) 5) Fair value of financial
instruments, when valuation techniques are used to determine the fair value of a financial instrument, various
general and internally developed techniques are used, and various types of assumptions and variables are
incorporated during the process.
(3) Impairment of financial instruments
Korean IFRS 1109 requires entities to measure loss allowance equal to 12-month expected credit losses or
lifetime expected credit losses after classifying financial assets into one of the three stages, which depends on
the degree of increase in credit risk after their initial recognition.
Stage 1
Allowance for
expected credit
losses
Credit risk has not significantly
increased since initial recognition (*)
Expected 12-month credit losses:
Expected credit losses due to possible
defaults on financial instruments within
a 12-month period from the year-end.
Stage 3
Stage 2
Credit risk has significantly
increased since initial
recognition
Expected lifetime credit losses:
Expected credit losses from all possible
defaults during the expected lifetime of the
financial instruments.
Credit
impaired
(*) Credit risk may be considered not to have been significantly increased when credit risk is low at year-end.
The accuracy of the provision for credit losses is determined by the estimation of the expected cash flows for
each tenant for estimating the individually assessed loan-loss allowance, and the assumptions and variables in
the model used for estimating the collectively assessed loan-loss allowance payment, guarantee and unused
commitment.
The Group has estimated the allowance for credit losses based on reasonable and supportable information
that was available without undue cost or effort at the reporting date about past events, current conditions and
forecasts of future economic conditions.
Probability of default (PD) and Loss given default (LGD) for each category of financial asset is being
calculated by considering factors such as debtor type, credit rating and portfolio. The estimates are regularly
being reviewed in order to reduce discrepancies with actual losses.
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In measuring the expected credit losses, the Group is also using reasonable and supportable macroeconomic
indicators such as economic growth rates, interest rates, market index rates, etc., in order to forecast future
economic conditions.
The Group is conducting the following procedures to estimate and apply future economic forecast
information.
- Development of prediction models by analyzing the correlation between default rates of corporate
and retail exposures per year and macroeconomic indicators
Major macroeconomic indicators
GDP growth rate
Home price index
Consumer price index
Correlation between credit risk and macroeconomic
indicators
Negative(-) Correlation
Negative(-) Correlation
Negative(-) Correlation
-
Calculation of predicted default rate incorporating future economic forecasts by applying estimated
macroeconomic indicators provided by verified institutions such as Bank of Korea and National
Assembly Budget Office to the prediction model developed
The results of Woori Bank's sensitivity analysis on expected credit loss provisions due to changes in
macroeconomic indicators as of December 31, 2020 are as follows (Unit: Korean Won in millions):
Corporate
GDP growth rate
Retail
Consumer Price Index
Increase by 1% point
Decrease by 1% point
Increase by 1% point
Decrease by 1% point
December 31, 2020
(86,086)
96,177
(15,807)
17,119
At the end of every reporting period, the Group evaluates whether credit risk reflecting forward-looking
information has significantly been increased since the date of initial recognition. When evaluating whether
credit risk has significantly been increased, the changes in the probability of default over the financial
instrument’s remaining life is used instead of changes in the amount of expected credit losses.
The Bank performs the above evaluation with distinctions made to corporate and retail exposures, and
indicators of significant increase in credit risk are as follows:
Corporate Exposures
Retail Exposures
Asset quality level ‘Precautionary’ or lower
More than 30 days past due
‘Warning’ level in early warning system
Debtor experiencing financial difficulties
Asset quality level ‘Precautionary’ or lower
More than 30 days past due
Significant decrease in credit rating(*)
Deferment of repayment of principal and interest
(Capital impairment, Adverse opinion or Disclaimer
of opinion by external auditors)
Significant decrease in credit rating (*)
Deferment of repayment of principal and interest
Deferment of interest
Deferment of interest
(*) Determining whether there has been a significant decrease in the credit rating of corporate and retail exposures
applies only to credit ratings that are measured through 12-month expected credit loss. The Woori Bank, which
is an important subsidiary of the Group, has applied the above indicators of significant decrease in credit rating
since initial recognition as follows, and the estimation method is regularly being monitored.
Corporate
Retail
Credit rating
AAA ~ A+
A- ~ BBB
BBB- ~ BB+
BB ~ BB-
1 ~ 3
4 ~ 5
6 ~ 10
Significant increased indicator of the credit rating
More than or equal to 4 steps
More than or equal to 3 steps
More than or equal to 2 steps
More than or equal to 1 step
More than or equal to 3 steps
More than or equal to 2 steps
More than or equal to 1 step
The Group sees no significant increase in credit risk after initial recognition for debt securities, etc. with a
credit rating of A + or higher, which are deemed to have low credit risk at the end of the reporting period
The Group concludes that credit is impaired when financial assets are under conditions stated below:
- When principal of loan is overdue for 90 days or longer due to significant deterioration in credit
-
For loans overdue for less than 90 days, when it is determined that not even a portion of the loan
will be recovered unless claim actions such as disposal of collaterals are taken
- When other objective indicators of impairment have been noted for the financial asset.
The Group determines which loan is subject to write-off in accordance with internal guidelines and writes off
loan receivables when it is determined that the loans are practically irrecoverable. For example, loans are
practically irrecoverable when application is made for rehabilitation under the Debtor Rehabilitation and
Bankruptcy Act and loans are confirmed as irrecoverable by the court’s decision to waive debtor’s obligation,
or when it is impossible to recover the loan amount through legal means such as auctioning of debtor’s assets
or through any other means of recovery available. Notwithstanding the write-off, the Group may still exercise
its right of collection after the asset has been written off in accordance with its collection policies.
(4) Defined benefit plan
The Group operates a defined benefit pension plan. Defined benefit obligation is calculated at every end of
the reporting period by performing actuarial valuation, and estimation of assumptions such as discount rate,
expected wage growth rate and mortality rate is required to perform such actuarial valuation. The defined
benefit plan, due to its long-term nature, contains significant uncertainties in its estimates.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
4. RISK MANAGEMENT
2) Maximum exposure to credit risk
The Group’s operating activity is exposed to various financial risks and the and the main types of risks are
credit risk, market risk, liquidity risk and etc. The risk management department analyze and assess the level
of complex risks in order to manage the risks and the risk management standards such as policies,
regulations, management systems and decision-making have been established and operated for sound
management of the Group.
The risk management organization is operated by risk management committee, risk management responsible,
and risk management department. The Board of Directors operates a risk management committee comprised
of outside directors for professional risk management. The risk management committee plays a role as the
top decision-making body in risk management by establishing basic policies for risk management that are in
line with the Group’s management strategy and determining the risk level that the Group is willing to take.
The risk management office (CRO) assists the risk management committee and operates a group risk
management council comprised of risk management managers of subsidiaries to periodically check and
improve the risk burden of external environments and the Group. The risk management department is
independent and is in charge of risk management of the Group. It also supports reporting and decision-
making of key risk-related issues.
(1) Credit risk
Credit risk represents the possibility of financial losses incurred due to the refusal of the transaction or when
the counterparty fails to fulfill its contractual obligations. The goal of credit risk management is to maintain
the Group’s credit risk exposure to a permissible degree and to optimize its rate of return considering such
credit risk.
1) Credit risk management
The Group considers the probability of failure in performing the obligation of its counterparties, credit
exposure to the counterparty, the related default risk and the rate of default loss. The Group uses the
credit rating model to assess the possibility of counterparty’s default risk; and when assessing the
obligor’s credit grade, the Group utilizes credit grades derived using statistical methods.
In order to manage credit risk limit, the Group establishes the appropriate credit line per obligor,
company or industry. It monitors obligor’s credit line, total exposures and loan portfolios when
approving the loan.
The Group mitigates credit risk resulting from the obligor’s credit condition by using financial and
physical collateral, guarantees, netting agreements and credit derivatives. The Group has adopted the
entrapment method to mitigate its credit risk. Credit risk mitigation is reflected in qualifying financial
collateral, trade receivables, guarantees, residential and commercial real estate and other collaterals. The
Group regularly performs a revaluation of collateral reflecting such credit risk mitigation.
The Group’s maximum exposure to credit risk shows the uncertainties related to the maximum possible
variation of financial assets’ net value as a result of changes in the specific risk factors, prior to the
consideration of collaterals that are recorded at net book value after allowances and other credit
enhancements. However, the maximum exposure is the fair value amount (recorded on the books) for
derivatives, maximum contractual obligation for payment guarantees and unused amount of
commitments for loan commitment.
The maximum exposure to credit risk as of December 31, 2020 and 2019 is as follows (Unit: Korean
Won in millions):
Loans and other
Korean treasury and government
financial assets at
amortized cost (*1)
agencies
Banks
Corporates
Consumers
Financial assets at
FVTPL (*2)
Financial assets at
FVTOCI
Securities at amortized
cost
Derivative assets
Off-balance accounts
Sub-total
Deposit
Debt securities
Loans
Derivative assets
Sub-total
Debt securities
Debt securities
Derivative assets (Designated for
hedging)
Guarantees (*3)
Loan commitments
Sub-total
Total
December 31, 2020
December 31, 2019
9,725,719
19,493,188
114,131,996
176,755,175
320,106,078
48,796
2,887,097
676,291
6,901,742
10,513,926
28,948,141
17,020,839
174,820
11,809,456
112,088,680
123,898,136
500,661,940
14,797,040
18,597,206
101,041,110
159,282,337
293,717,693
27,901
2,337,085
212,473
2,921,903
5,499,362
26,795,161
20,320,539
121,131
12,618,917
103,651,674
116,270,591
462,724,477
(*1) Cash and cash equivalents are not included.
(*2) Puttable financial instruments are not included.
(*3) As of December 31, 2020 and 2019, the financial guarantee amount of 4,163,382 million won and 4,317,969
million won are included, respectively.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
a) Credit risk exposure by geographical areas
The following tables analyze credit risk exposure by geographical areas (Unit: Korean Won in
millions):
Korea
China
USA
December 31, 2020
UK
Japan
Others (*)
Total
Loans and other financial assets at
amortized cost
Securities at amortized cost
Financial assets at FVTPL
Financial assets at FVTOCI
Derivative assets (Designated for
hedging)
Off-balance accounts
Total
296,186,751
16,749,531
6,954,630
25,966,333
4,356,747
-
13,403
608,893
-
119,699,069
465,556,314
-
1,393,734
6,372,777
3,988,304 1,990,490 1,404,670
-
480,760
5,460
110,597
1,083,096
1,092,636
-
493,285
5
165,458
399,678
-
41,378
6,839,769 2,525,909 1,932,268
3,740
38,389
12,179,116
160,711
1,488,752
1,274,814
320,106,078
17,020,839
10,513,926
28,948,141
5,622
2,325,888
17,434,903
174,820
123,898,136
500,661,940
(*) Others consist of financial assets in Indonesia, Hong Kong, Germany, Australia, and other countries.
Korea
China
USA
December 31, 2019
UK
Japan
Others (*)
Total
Loans and other financial assets at
amortized cost
Securities at amortized cost
Financial assets at FVTPL
Financial assets at FVTOCI
Derivative assets (Designated for
hedging)
Off-balance accounts
Total
268,316,454
20,104,604
5,488,229
24,553,655
5,108,144
-
10,409
332,319
121,131
112,602,603
431,186,676
-
1,211,857
6,662,729
5,077,666 1,844,374 1,172,209
-
724
2
66,747
-
144,601
-
-
102,311
-
387,795
-
46,662
5,676,809 2,025,535 1,219,597
-
78,850
12,198,846
149,188
-
1,662,273
293,717,693
20,320,539
5,499,362
26,795,161
-
1,942,824
15,953,131
121,131
116,270,591
462,724,477
(*) Others consist of financial assets in Indonesia, Hong Kong, Germany, Australia, and other countries.
b) Credit risk exposure by industries
① The following tables analyze credit risk exposure by industries, which are service, manufacturing,
finance and insurance, construction, individuals and others in accordance with the Korea Standard
Industrial Classification Code as of December 31, 2020 and 2019 (Unit: Korean Won in
millions):
Loans and other financial
assets at amortized cost
Securities at amortized cost
Financial assets at FVTPL
Financial assets at FVTOCI
Derivative assets (Designated
for hedging)
Off-balance accounts
Total
Loans and other financial
assets at amortized cost
Securities at amortized cost
Financial assets at FVTPL
Financial assets at FVTOCI
Derivative assets (Designated
for hedging)
Off-balance accounts
Total
Service
Manufacturing
Finance and
insurance
Construction
Individuals
Others
Total
December 31, 2020
56,627,927
492,172
301,296
475,881
35,933,953
6,691
234,712
207,903
35,450,774
8,926,909
8,520,127
23,017,149
3,493,000
302,225
32,240
142,396
172,116,780
-
14,619
-
16,483,644
7,292,842
1,410,932
5,104,812
320,106,078
17,020,839
10,513,926
28,948,141
-
18,828,656
76,725,932
-
21,460,581
57,843,840
174,820
12,086,935
88,176,714
-
4,060,358
8,030,219
-
62,477,117
234,608,516
-
4,984,489
35,276,719
174,820
123,898,136
500,661,940
Service
Manufacturing
Finance and
insurance
Construction
Individuals
Others
Total
December 31, 2019
51,233,088
8,545,838
162,780
85,609
32,983,972
-
128,666
139,098
36,141,770
10,979,001
4,084,698
18,968,456
3,291,001
364,591
39,193
10,047
155,120,055
-
15,430
9,241
14,947,807 293,717,693
431,109 20,320,539
5,499,362
1,068,595
7,582,710 26,795,161
-
17,813,366
77,840,681
-
23,841,881
57,093,617
121,131
10,015,897
80,310,953
-
4,161,139
7,865,971
-
53,335,209
208,479,935
-
121,131
7,103,099 116,270,591
31,133,320 462,724,477
② The detailed industries of financial assets and corporate loans that might get affected by the
spread of COVID-19 as of December 31, 2020 are as follow and the industries that can be
affected may change by future economic conditions. (Unit: Korean Won in millions):
< Woori Bank >
Loans and other
financial assets at
amortized cost
Financial assets at
FVTPL
Financial assets at
FVTOCI
Service business
Distribution
business
General retail
business
General wholesale
business
Sub-total
Manufacturing
Accommodation business
Travel business
Art/sports, leisure service
Food business
Transportation business
Education business
Others
Sub-total
Textile
Metal
Non-metal
Chemical
Transportation
Electronics
Cosmetics
Others
Sub-total
Total
Service business
Distribution
business
General retail
business
General wholesale
business
Sub-total
Manufacturing
Accommodation business
Travel business
Art/sports, leisure service
Food business
Transportation business
Education business
Others
Sub-total
Textile
Metal
Non-metal
Chemical
Transportation
Electronics
Cosmetics
Others
Sub-total
Total
1,070,789
1,407,563
2,478,352
1,525,157
59,858
1,467,643
1,078,832
395,873
367,701
1,286,578
8,659,994
2,281,344
1,390,290
698,478
1,819,207
3,268,095
1,424,297
323,231
368,123
11,573,065
20,233,059
11,944
3,573
15,517
9,305
-
17,739
2,515
461
489
2,691
48,717
6,608
47,903
8,357
19,161
2,060
19,280
217
277
103,863
152,580
Off-balance accounts
Total
897,101
483,360
1,380,461
152,059
21,350
114,388
135,680
193,578
48,064
318,641
2,364,221
1,064,005
1,581,887
377,506
3,233,405
2,183,616
1,789,605
54,518
1,483,551
11,768,093
14,132,314
5,461
-
5,461
5,471
-
-
-
8,752
-
-
19,684
6,559
-
-
-
-
-
-
-
6,559
26,243
1,985,295
1,894,496
3,879,791
1,691,992
81,208
1,599,770
1,217,027
598,664
416,254
1,607,910
11,092,616
3,358,516
3,020,080
1,084,341
5,071,773
5,453,771
3,233,182
377,966
1,851,951
23,451,580
34,544,196
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< Woori Card Co., Ltd. >
Accommodation business
Travel business
Aviation
Cosmetics industry
Distribution business
Food industry
Art/sports, leisure service
Total
Loans and other
financial assets at
amortized cost
4,959
2,175
479
2,462
8,050
33,084
6,156
57,365
Financial assets at
FVTPL
Financial assets at
FVTOCI
Off-balance
accounts
Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
12,315
25,367
4,179
13,376
44,354
163,711
51,962
315,264
17,274
27,542
4,658
15,838
52,404
196,795
58,118
372,629
Service business
Distribution
business
General retail
business
General wholesale
business
Sub-total
Manufacturing
Accommodation business
Travel business
Art/sports, leisure service
Food business
Transportation business
Education business
Others
Sub-total
Textile
Metal
Non-metal
Chemical
Transportation
Electronics
Cosmetics
Others
Sub-total
Total COVID-19 vulnerable business
Other business
Others
Total
Service business
Distribution
business
General retail
business
General wholesale
business
Sub-total
Manufacturing
Accommodation business
Travel business
Art/sports, leisure service
Food business
Transportation business
Education business
Others
Sub-total
Textile
Metal
Non-metal
Chemical
Transportation
Electronics
Cosmetics
Others
Sub-total
Total COVID-19 vulnerable business
Other business
Others
Total
Loans and other
financial assets at
amortized cost
Financial assets at
FVTPL
Financial assets at
FVTOCI
8,978
57,587
66,565
6,292
1,293
615
21,774
28,270
1,132
365,860
491,801
29,415
17,963
4,780
2,501
52,514
12,665
-
5,335
125,173
616,974
6,202,754
6,819,728
-
-
-
-
-
-
-
-
-
27,364
27,364
-
-
-
-
-
-
-
-
-
27,364
225,078
252,442
Off-balance accounts
Total
-
-
-
-
-
-
-
-
-
38,681
38,681
-
3,365
-
-
-
-
-
-
3,365
42,046
333,766
375,812
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,978
57,587
66,565
6,292
1,293
615
21,774
28,270
1,132
431,905
557,846
29,415
21,328
4,780
2,501
52,514
12,665
-
5,335
128,538
686,384
6,761,598
7,447,982
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
< Woori Investment Bank Co., Ltd. >
Accommodation business
Distribution business
Art/sports, leisure service
Total
Loans and other
financial assets at
amortized cost
44,900
15,716
28,000
88,616
Financial assets at
FVTPL
Financial assets at
FVTOCI
Off-balance
accounts
-
20,000
-
20,000
-
-
-
-
-
-
-
-
Total
44,900
35,716
28,000
108,616
3) Credit risk exposure
a) Financial assets
The maximum exposure to credit risk by asset quality, except for financial assets at FVTPL and
derivative asset (Designated for hedging) as of December 31, 2020 and 2019 is as follows (Unit:
Korean Won in millions):
December 31, 2020
Stage 1
Stage 2
Above
appropriate
credit rating
(*1)
Less than a
limited credit
rating
(*2)
Above
appropriate
credit rating
(*1)
Less than a
limited credit
rating
(*2)
Stage 3
Total
Loss
allowance
Total, net
278,729,012
21,249,885
10,356,251
10,143,839
1,623,276
322,102,263
(1,996,185)
320,106,078
9,674,891
19,301,570
93,889,922
61,082,336
1,063
105,890
14,873,376
9,013,955
52,279
75,876
1,890,564
1,349,053
-
-
3,860,389
2,585,868
-
25,598
839,234
576,078
9,728,233
19,508,934
115,353,485
74,607,290
(2,514)
(15,745)
(1,221,491)
(869,744)
9,725,719
19,493,189
114,131,994
73,737,546
27,504,992
5,415,312
538,909
1,207,706
227,003
34,893,922
(304,077)
34,589,845
5,302,594
155,862,629
17,025,405
444,109
6,269,556
-
2,602
8,337,532
-
66,815
6,283,450
-
36,153
758,444
-
5,852,273
177,511,611
17,025,405
(47,670)
(756,435)
(4,566)
5,804,603
176,755,176
17,020,839
Loans and other financial
assets at amortized cost
Korean treasury and
government agencies
Banks
Corporates
General business
Small- and medium-
sized enterprise
Project financing and
others
Consumers
Securities at amortized cost
Financial assets at FVTOCI
(*3)
Total
28,789,281
324,543,698
158,860
21,408,745
-
10,356,251
-
10,143,839
-
1,623,276
28,948,141
368,075,809
(9,631)
(2,010,382)
28,948,141
366,075,058
Loans and other financial assets at amortized cost
Korean treasury and government agencies
Banks
Corporates
General business
Small- and medium-sized enterprise
Project financing and others
Consumers
Securities at amortized cost
Financial assets at FVTOCI (*3)
Total
Stage1
187,731,443
19,280
1,003,971
62,817,305
35,578,470
25,404,002
1,834,833
123,890,887
-
-
187,731,443
December 31, 2020
Collateral value
Stage2
15,677,871
-
-
3,963,101
2,670,480
1,290,941
1,680
11,714,770
-
-
15,677,871
Stage3
696,709
-
-
400,340
271,815
118,265
10,260
296,369
-
-
696,709
Total
204,106,023
19,280
1,003,971
67,180,746
38,520,765
26,813,208
1,846,773
135,902,026
-
-
204,106,023
(*1) Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.
(*2) Credit grade of corporates are BBB- ~ C, and consumers are grades 7 ~ 10.
(*3) Financial assets at FVTOCI has been disclosed as the amount before deducting loss allowance because loss allowance
does not reduce the carrying amount.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
December 31, 2019
b) Guarantees and commitments
Stage 1
Stage 2
Above
appropriate
credit rating
(*1)
Less than a
limited
credit rating
(*3)
Above
appropriate
credit
rating (*2)
Less than a
limited credit
rating
(*3)
Stage 3
Total
Loss
allowance
Total, net
255,709,205 19,823,451
8,712,860
9,625,024
1,504,172
295,374,712
(1,657,019) 293,717,693
10,390
14,789,933
18,336,664
109,667
82,286,304 15,201,687
6,191,625
45,769,233
-
150,318
485,469
441,089
-
-
3,267,311
1,620,761
1
21,907
792,375
544,238
14,800,324
18,618,556
102,033,146
54,566,946
14,797,040
(3,284)
18,597,206
(21,350)
(992,036) 101,041,110
53,888,709
(678,237)
32,180,551
8,507,800
44,380
1,586,865
230,901
42,550,497
(287,027)
42,263,470
4,336,520
140,296,304
20,326,050
502,262
4,501,707
-
-
8,077,073
-
59,685
6,357,713
-
17,236
689,889
-
4,915,703
159,922,686
20,326,050
4,888,931
(26,772)
(640,349) 159,282,337
20,320,539
(5,511)
Loans and other financial
assets at amortized cost
Korean treasury and
government agencies
Banks
Corporates
General business
Small- and medium-
sized enterprise
Project financing and
others
Consumers
Securities at amortized cost
Financial assets at FVTOCI
The credit quality of the guarantees and loan commitments as of December 31, 2020 and 2019 are
as follows (Unit: Korean Won in millions):
Stage 1
December 31, 2020
Stage 2
Above
appropriate
credit rating
(*1)
Less than a
limited credit
rating
(*2)
Above
appropriate
credit rating
(*1)
Less than a
limited
credit rating
(*2)
Stage3
Total
Financial assets
Off-balance accounts:
Guarantees
Loan Commitments
Total
10,152,900
105,108,967
115,261,867
1,382,592
4,045,595
5,428,187
11,504
1,951,649
1,963,153
191,962
977,185
1,169,147
70,498
11,809,456
5,284 112,088,680
75,782 123,898,136
(*4)
Total
26,684,601
110,560
302,719,856 19,934,011
-
8,712,860
-
9,625,024
-
1,504,172
26,795,161
342,495,923
(8,569)
26,795,161
(1,671,099) 340,833,393
(*1) Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.
(*2) Credit grade of corporate are BBB- ~ C, and consumers are grades 7 ~ 10.
Loans and other financial assets at amortized cost
Korean treasury and government agencies
Banks
Corporates
General business
Small- and medium-sized enterprise
Project financing and others
Consumers
Securities at amortized cost
Financial assets at FVTOCI (*4)
Total
Stage1
169,438,539
-
612,200
55,602,818
22,291,348
31,517,538
1,793,932
113,223,521
-
-
169,438,539
December 31, 2019
Collateral value
Stage2
14,451,806
-
2,028
2,335,496
1,023,766
1,311,730
-
12,114,282
-
-
14,451,806
Stage3
692,139
-
-
394,860
240,771
145,061
9,028
297,279
-
-
692,139
Total
184,582,484
-
614,228
58,333,174
23,555,885
32,974,329
1,802,960
125,635,082
-
-
184,582,484
(*1) Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.
(*2) Credit grade of corporates are A- ~ BBB, and consumers are grades 1 ~ 6.
(*3) Credit grade of corporates are BBB- ~ C, and consumers are grades 7 ~ 10.
(*4) Financial assets at FVTOCI has been disclosed as the amount before deducting loss allowance because loss
allowance does not reduce the carrying amount.
Stage 1
December 31, 2019
Stage 2
Above
appropriate
credit rating
(*1)
Less than a
limited credit
rating
(*3)
Above
appropriate
credit rating
(*2)
Less than a
limited
credit rating
(*3)
Stage3
Total
Financial assets
Off-balance accounts
Guarantees
Loan Commitments
Total
10,952,917
97,854,790
108,807,707
355
1,333,561
3,479,295 1,388,136
4,812,856 1,388,491
223,657 108,427
906,033
12,618,917
23,420 103,651,674
1,129,690 131,847 116,270,591
(*1) Credit grade of corporates are AAA ~ BBB, and consumers are grades 1 ~ 6.
(*2) Credit grade of corporates are A- ~ BBB, and consumers are grades 1 ~ 6.
(*3) Credit grade of corporate are BBB- ~ C, and consumers are grades 7 ~ 10.
4) Collateral and other credit enhancements
For the year ended December 31, 2020 and 2019, there have been no significant changes in the value of
collateral or other credit enhancements held by the Group and there have been no significant changes in
collateral or other credit enhancements due to changes in the collateral policy of the Group. As of
December 31, 2020, there are no financial assets that do not recognize the allowance for losses just
because financial assets have collateral.
5) Among financial assets that measured loss allowance at lifetime expected credit losses, amortized
costs before changes in contractual cash flows as of December 31, 2020 and 2019 are 265,760
million Won and 18,735 million Won, respectively, with net losses recognized along with the
changes 12,786 million Won and 82 million Won, respectively.
6) As the Group manages receivables that have not lost the right of claim to the debtor for the grounds
of incomplete statute limitation and uncollected receivables under the related laws as receivable
charge-offs, the balance as of December 31, 2020 and 2019 are 9,986,186 million won and
9,667,199 million won. In addition, the contractual non-recoverable amount of financial assets
amortized for the year ended December 31, 2020, but still in the process of recovery is 390,854
million won.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(2) Market risk
b) Non-trading activities
Market risk is the possible risk of loss arising from trading position and non-trading position as a result of the
volatility of market factors such as interest rates, stock prices and foreign exchange rates.
1) Market risk management
Market risk management refers to the process of making and implementing decisions for the avoidance,
acceptance or mitigation of risks by identifying the underlying source of the risks and measuring its
level, and evaluating the appropriateness of the level of accepted market risks.
a) Trading activities
The Group uses the standard method and the internally developed model (the Bank) in measuring
market risk for trading positions, and allocates market risk capital through the Risk Management
Committee. Risk management departments of the Group and its subsidiaries manage limits in detail
including those on risk and loss with their management result regularly reported to the Risk
Management Committee.
Woori Bank, a subsidiary of the Group, uses the internal model approved by the Financial Supervisory
Service to measure the VaR using the Historical Simulation Method based on a 99% confidence level
and a 10-day retention period, and calculates the required capital risk for calculating the BIS ratio. For
internal management purposes, limit management is performed on a daily basis measuring VaR based
on a 99% confidence and 1 day retention period. In addition, Woori Bank perform a daily verification
that compares VaR measurement and profit and loss to verify the suitability of the model.
The minimum, maximum and average VaR of the Bank for the year December 31, 2020 and 2019, and
the VaR of the Bank as of December 31, 2020 and 2019 are as follows (Unit: Korean Won in millions):
The Bank manages and measures interest risk for non-trading activities through △NII(Change in Net
Interest Income) and △EVE(Change in Economic Value of Equity) in accordance with IRRBB(Interest
Rate Risk in the Banking Book) introduced at the end of 2019.
△NII represents a change in net interest income that may occur over a certain period (e.g. one year) due
to changes in net interest income, and △EVE indicates the economic value changes in equity capital
that could be caused by changes in interest rates affecting the present value of asset, liabilities, and
others.
Subsidiaries other than the Bank measure and manage interest rate risk with interest rates EaR(Earnings
at Risk) and VaR(Value at Risk). The interest rate EaR represents the maximum expected change in
profit or loss that could occur over a period of time (e.g. one year) due to unfavorable interest rate
changes, which shows the maximum reduction scale in net interest. The interest rate VaR represents the
maximum expected loss that indicates how unfavorable changes in interest rates can reduce the value of
the net asset at any given point in time, now or in the future.
For assets and liabilities as of December 31, 2020 and 2019 that include bank, consolidated trusts and
subsidiaries of the bank, details of △EVE and △NII calculated based on interest rate risk in banking
book (IRRBB) are as follows (Unit: Korean Won in millions):
December 31, 2020
December 31, 2019
△EVE (*1)
△NII (*2)
△EVE (*1)
△NII (*2)
634,596
66,138
490,981
162,023
December
31, 2019
For the year ended
December 31, 2019
(*1)
(*2)
EVE: change in Economic Value of Equity
NII: change in Net Interest Income
Risk factor
Interest rate
Stock price
Foreign
currencies
Commodity price
Diversification
Total VaR(*)
December
31, 2020
6,815
2,283
For the year ended
December 31, 2020
Average Maximum Minimum
2,427
1,982
15,065
14,394
7,959
5,783
11,160
-
8,814
-
(11,087) (11,175)
11,381
9,171
11,233
-
(18,796)
21,896
4,613
-
(3,452)
5,570
5,052
3,730
5,028
-
(6,233)
7,577
Average
Maximum Minimum
1,176
1,146
5,725
5,935
3,406
3,203
5,033
1
(5,127)
6,516
6,469
32
(9,229)
8,932
4,395
-
(2,339)
4,378
(*) VaR (Value at Risk): Retention period of 1 day, Maximum expected losses under 99% level of confidence.
△
△
For the remaining subsidiaries except the bank, consolidated trusts, and consolidated subsidiaries of the
bank as of December 31, 2020 and 2019, the interest rate EaR and VaR calculated based on the BIS
Framework are as follows (Unit: Korean Won in millions):
Woori Card Co., Ltd.
Woori Financial
Capital Co., Ltd.
Woori Investment
Bank Co., Ltd.
Woori Asset Trust Co.,
Ltd.
Woori Asset
Management Corp.
Woori Private Equity
Asset Management
Co., Ltd.
Woori Global Asset
Management Co.,
Ltd.
December 31, 2020
December 31, 2019
EaR (*1)
VaR (*2)
EaR (*1)
VaR (*2)
106,645
157,085
100,213
85,010
3,701
1,479
3,211
64
193
119
12,550
5,005
398
493
37
318
-
7,629
-
256
416
386
-
958
-
2,486
80
84
(*1) EaR (Earning at Risk): Change of maximum expected income and expense
(*2) VaR (Value at Risk): Maximum expected losses
248
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
The Group estimates and manages risks related to changes in interest rate due to the difference in the
maturities of interest-bearing assets and liabilities and discrepancies in the terms of interest rates. Cash flows
(both principal and interest), interest bearing assets and liabilities, presented by each re-pricing date, are as
follows (Unit: Korean Won in millions):
Within 3
months
4 to 6
months
December 31, 2020
10 to 12
months
7 to 9
months
1 to 5
years
Over 5 years
Total
Asset:
Loans and other
financial assets
at amortized cost
Financial assets at
FVTPL
Financial assets at
FVTOCI
Securities at
amortized cost
Total
Liability:
Deposits due to
customers
Borrowings
Debentures
Total
Asset:
Loans and other
financial assets
at amortized cost
Financial assets at
FVTPL
Financial assets at
FVTOCI
Securities at
amortized cost
Total
Liability:
Deposits due to
customers
Borrowings
Debentures
Total
2) Currency risk
177,214,415 54,035,826 12,410,513 11,140,520 64,799,854
5,170,572 324,771,700
609,542
263,510
91,791
94,879
150,148
13,239
1,223,109
4,344,718
3,339,086
3,751,882
2,915,238 14,648,033
473,124 29,472,081
1,372,094
1,869,352 11,080,632
183,540,769 59,109,731 17,187,901 16,019,989 90,678,667
1,471,309
933,715
127,557,303 46,471,099 35,455,403 29,354,652 52,395,811
11,223,338
3,828,384
3,495,915 21,899,788
3,246,233
142,026,874 52,700,372 40,511,477 33,800,459 78,123,983
1,126,728
3,929,346
2,832,846
3,396,427
949,892
1,018,002 17,745,104
6,674,937 373,211,994
50,655 291,284,923
452,495 20,413,683
3,257,026 39,224,735
3,760,176 350,923,341
Within 3
months
4 to 6
months
December 31, 2019
10 to 12
months
7 to 9
months
1 to 5
years
Over 5 years
Total
5,414,586
5,486,113
3,450,669
3,174,893
9,367,756
318,371 27,212,388
1,844,868
1,409,549 14,869,227
160,433,206 56,711,371 16,758,127 15,125,211 81,950,459
1,696,004
738,383
116,490,812 45,803,202 32,683,132 26,740,013 43,175,232
3,264,861
12,105,234
2,466,142 19,211,409
2,378,211
130,974,257 50,608,538 37,062,781 29,913,107 65,651,502
1,048,991
3,330,658
1,910,759
2,894,577
706,952
858,142 21,416,173
6,399,530 337,377,904
59,305 264,951,696
509,359 19,546,156
2,537,391 32,818,388
3,106,055 317,316,240
Currency risk arises from the financial instruments denominated in foreign currencies other than the
functional currency. Therefore, no currency risk arises from non-monetary items or financial
instruments denominated in the functional currency.
Financial instruments in foreign currencies exposed to currency risk as of December 31, 2020 and 2019
are as follows (Unit: USD in millions, JPY in millions, CNY in millions, EUR in millions, and Korean
Won in millions):
USD
JPY
CNY
EUR
Others
Total
December 31, 2020
Foreign
currency
Korean
Won
equivalent
Foreign
currency
Korean
Won
equivalent
Foreign
currency
Korean
Won
equivalen
t
Foreign
currency
Korean
Won
equivalent
Korean
Won
equivalent
Korean Won
equivalent
Asset
Liability
Cash and cash
equivalents
Loans and other
financial
assets at
amortized cost
(*)
Financial assets
at FVTPL
Financial assets
at FVTOCI
Securities at
amortized cost
Total
Financial
liabilities at
FVTPL
Deposits due to
customers
Borrowings
Debentures
Other financial
liabilities
Total
5,584 6,074,879 22,832
240,710
4,580
764,686
115
154,154
501,900
7,736,329
21,687 23,595,957 172,782 1,821,554 24,230 4,045,435
2,001 2,678,382 4,857,438
36,998,766
280
304,146 18,855
198,781
73
11,989
248
332,182
88,745
935,843
2,741 2,981,832
-
-
2,601
434,258
37
49,789
565,893
4,031,772
319
-
30,611 33,304,384 214,469 2,261,045 31,484 5,256,368
347,570
-
-
-
34
45,197
115,534
2,435 3,259,704 6,129,510
508,301
50,211,011
426
463,678 14,493
152,792
-
-
158
211,525
115,429
943,424
16,664 18,130,448 220,153 2,320,983 26,733 4,463,300
-
5,657 6,154,464 48,446
-
-
3,973 4,322,800
510,750
-
-
-
2,381 2,590,147
309,319
29,101 31,661,537 289,797 3,055,215 28,586 4,772,619
70,690
6,705
1,853
1,532 2,050,400 3,443,631
697,234
789,955
444,711
-
590
-
30,408,762
8,152,403
4,767,511
64
85,553
193,128
2,344 3,137,433 4,894,133
3,248,837
47,520,937
Off-balance accounts
7,441 8,095,297 24,992 263,478 3,007 502,106
533 712,846 556,988 10,130,715
financial
assets at
amortized cost
(*)
Financial assets
at FVTPL
Financial assets
at FVTOCI
Securities at
22,916
26,531,794 150,462 1,600,140
31,393 5,203,131
2,258 2,929,312 5,272,352
41,536,729
165
190,733
5,322
56,602
25
4,155
105
135,827
64,185
451,502
2,679
3,102,752
-
-
2,005
332,319
25
33,017
406,753
3,874,841
amortized cost
Total
319
26,079
369,677
-
30,194,956 155,784 1,656,742
-
-
-
33,423 5,539,605
40
97,092
52,139
2,428 3,150,295 5,840,382
518,908
46,381,980
Liability
Financial
liabilities at
FVTPL
Deposits due to
customers
Borrowings
Debentures
Other financial
251
291,102
4,415
46,957
-
-
68
87,776
83,790
509,625
13,208
6,588
3,999
15,291,671 166,108 1,766,526
117,634
7,627,665 11,061
-
-
4,629,944
27,739 4,597,467
2,743
-
16
-
1,727 2,240,884 3,247,164
499,046
668,060
271,790
136,230
515
105
27,143,712
8,915,148
5,037,964
liabilities
Total
3,016
27,062
119,529
3,492,462 11,240
31,332,844 192,824 2,050,646
510,281
3,079
30,834 5,110,491
359
6,906
466,240
2,774 3,599,190 4,108,696
4,595,418
46,201,867
Off-balance accounts
7,030
8,139,395
34,316
364,946
4,525
749,973
560
726,323
634,870 10,615,507
153,023,603 49,505,606 12,505,250 10,506,470 57,582,270
5,209,670 288,332,869
150,149
23,648
63,825
34,299
131,206
13,347
416,474
Asset
Loans and other
Foreign
currency
Korean
Won
equivalent
Foreign
currency
Korean
Won
equivalent
Foreign
currency
Korean
Won
equivalent
Foreign
currency
Korean
Won
equivalent
USD
JPY
December 31, 2019
CNY
EUR
Total
Others
Korean
Won
equivalent
Korean Won
equivalent
250
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251
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(3) Liquidity risk
Liquidity risk refers to the risk that the Group may encounter difficulties in meeting obligations from its
financial liabilities.
1) Liquidity risk management
Liquidity risk management is to prevent potential cash shortages as a result of mismatching the use of
funds (assets) and sources of funds (liabilities) or unexpected cash outflows. The financial liabilities that
are relevant to liquidity risk are incorporated within the scope of risk management. Derivatives
instruments are excluded from those financial liabilities as they reflect expected cash flows for a pre-
determined period.
Assets and liabilities are grouped by account under Asset Liability Management (“ALM”) in
accordance with the characteristics of the account. The Group manages liquidity risk by identifying the
maturity gap and such gap ratio through various cash flows analysis (i.e. based on remaining maturity
and contract period, etc.), while maintaining the gap ratio at or below the target limit.
2) Maturity analysis of non-derivative financial liabilities
a) Cash flows of principals and interests by remaining contractual maturities of non-derivative
financial liabilities as of December 31, 2020 and 2019 are as follows (Unit: Korean Won in
millions):
Within 3
months
4 to 6
months
7 to 9
months
10 to 12
months
1 to 5
years
Over
5 years
Total
December 31, 2020
Financial liabilities at
FVTPL
Deposits due to customers
Borrowings
Debentures
Lease liabilities
Other financial liabilities
Total
Financial liabilities at
FVTPL
Deposits due to customers
Borrowings
Debentures
Lease liabilities
Other financial liabilities
Total
64,183
42,418
135,232
112,102
191,660,253 34,349,298 25,213,410 31,144,452
1,866,810
10,159,819
3,246,233
3,495,915
53,429
8,121,978
-
9,230,904
4,177,634
21,899,788
201,113
451,096
213,305,895 40,520,357 30,950,767 36,664,937 35,960,535
2,524,572
3,396,427
44,551
70,277
1,714,490
3,929,346
40,809
10,294
34,761
10,897
-
353,935
1,793,143 293,391,460
463,376 20,906,701
3,257,228 39,224,937
409,443
2,142,772 10,807,314
7,691,299 365,093,790
34,780
Within 3
months
4 to 6
months
7 to 9
months
10 to 12
months
1 to 5
years
Over
5 years
Total
December 31, 2019
-
-
115,156
-
166,474,535 36,697,168 24,634,859 31,233,844
1,880,424
2,466,142
-
6,590,119
3,682,214
19,211,409
232,985
71,561
188,852,543 42,643,659 30,285,416 35,625,964 29,788,288
8,596,202
2,378,211
46,072
11,242,367
2,948,384
2,894,577
42,549
60,981
2,162,846
3,330,658
37,420
119,633
35,210
10,344
-
115,156
1,877,594 267,508,119
520,936 19,791,006
2,537,391 32,818,388
434,934
2,660,640 14,165,526
7,637,259 334,833,129
40,698
b) Cash flows of principals and interests by expected maturities of non-derivative financial liabilities
as of December 31, 2020 and 2019 are as follows (Unit: Korean Won in millions):
Within 3
months
4 to 6
months
December 31, 2020
10 to 12
months
7 to 9
months
1 to 5
years
Over 5
years
Financial liabilities at FVTPL
Deposits due to customers
Borrowings
Debentures
Lease liabilities
Other financial liabilities
Total
68,909
41,428
131,496
-
199,931,480 35,912,096 23,924,403 25,477,917 7,582,278
10,159,819 2,524,572 1,714,490 1,866,810 4,177,634
Total
353,935
105,413 292,933,587
463,376 20,906,701
3,246,233 3,396,427 3,929,346 3,495,915 21,899,788 3,257,228 39,224,937
419,421
36,950
208,125
451,096 2,142,772 10,807,314
221,581,848 42,079,762 29,660,910 30,998,715 34,318,921 6,005,739 364,645,895
53,429
8,121,978
40,949
10,294
35,074
10,897
44,894
70,277
112,102
-
Within 3
months
4 to 6
months
December 31, 2019
10 to 12
months
7 to 9
months
1 to 5
years
Over 5
years
Financial liabilities at FVTPL
Deposits due to customers
Borrowings
Debentures
Lease liabilities
Other financial liabilities
Total
-
-
115,156
Total
115,156
-
150,233 266,978,703
175,309,271 38,219,793 23,649,424 24,102,750 5,547,232
520,936 19,791,006
8,596,202 2,948,384 2,162,846 1,880,424 3,682,214
2,378,211 2,894,577 3,330,658 2,466,142 19,211,409 2,537,391 32,818,388
434,934
40,698
71,561 2,660,640 14,165,526
197,687,279 44,166,284 29,299,981 28,494,870 28,745,401 5,909,898 334,303,713
46,072
11,242,367
37,420
119,633
35,210
10,344
42,549
60,981
232,985
-
-
3) Maturity analysis of derivative financial liabilities
Derivatives held for trading purpose are not managed in accordance with their contractual maturity,
since the Group holds such financial instruments with the purpose of disposing or redemption before
their maturity. As such, those derivatives are incorporated as “within 3 months” in the table below.
Derivatives designated for hedging purpose are estimated by offsetting cash inflows and cash outflows.
The cash flow by the maturity of derivative financial liabilities as of December 31, 2020 and 2019 is as
follows (Unit: Korean Won in millions):
Within 3
months
4 to 6
months
Remaining maturity
10 to 12
months
7 to 9
months
December 31,
2020
December 31,
2019
Cash flow risk hedge
Fair value risk hedge
Trading purpose
Cash flow risk hedge
Trading purpose
2,655
255
6,460,472
1,839
2,843,195
6,004
(302)
-
(341)
-
515
233
-
(298)
-
239
(287)
-
(247)
-
1 to 5
years
55,744
126
-
6,249
-
Over 5
years
Total
65,157
-
-
25
- 6,460,472
-
7,202
- 2,843,195
4) Maturity analysis of off-balance accounts (Guarantees and loan commitments)
A financial guarantee represents an irrevocable undertaking that the Group should meet a customer’s
obligations to third parties if the customer fails to do so. The loan commitment represents the limit if the
Group has promised a credit to the customer. Commitments to lend include commercial standby
facilities and credit lines, liquidity facilities to commercial paper conduits and utilized overdraft
facilities. The maximum limit to be paid by the Group in accordance with guarantees and loan
commitment only applies to principal amounts. There are contractual maturities for financial
guarantees, such as guarantees for debentures issued or loans, unused loan commitments, and other
guarantees, however, under the terms of the guarantees and unused loan commitments, funds should be
paid upon demand from the counterparty. Details of off-balance accounts are as follows (Unit: Korean
Won in millions):
Guarantees
Loan commitments
Other commitments
December 31, 2020
December 31, 2019
11,809,456
112,088,680
4,912,690
12,618,917
103,651,674
3,411,334
252
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(4) Operational risk
5. OPERATING SEGMENTS
The Group defines the operational risk that could cause a negative effect on capital resulting from inadequate
internal process, labor work and systematic problem or external factors.
1) Operational risk management
The Group has established and operated an operating risk management system to strengthen external
competitiveness, reduce risk capital volume, enhance operational risk management capacity and prevent
accidents through compliance with Basel II, and has obtained approval from the Financial Supervisory
Service for “Advanced Measurement Approaches”(AMA) based on self-compliance verification and
independent third-party inspection results.
2) Operational risk measurement
The Group is applying the basic indicator method for the purpose of calculating the regulatory capital of
operation risk, and the Bank is applying the advanced measurement method. The Bank applies AMA
using internal and external loss data, business environment and internal control factors, and scenario
analysis.
(5) Capital management
The Group complies with the standard of capital adequacy provided by financial regulatory authorities. The
capital adequacy standard is based on Basel published by Basel Ⅲ Committee on Banking Supervision in
Bank for International Settlement in 2010 and was implemented in Korea in December 2013. The capital
adequacy ratio is calculated by dividing own capital by asset (weighted with a risk premium – risk weighted
assets) based on the consolidated financial statements of the Group.
According to the above regulations, the Group is required to meet the following new minimum requirements:
Tier 1 common capital ratio of 8.0% and 7.0%, a Tier 1 capital ratio of 9.5% and 8.5%, and a minimum total
capital ratio of 11.5% and 10.5% as of December 31, 2020 and 2019
The risk management committee of the Group determines the risk appetite of the Group, allocates internal
capital by risk type and major subsidiaries, and the major subsidiaries operate the capital efficiently within
the allocated internal capital. The risk management department of the Group monitors internal capital limit
management and reports it to the management and risk management committees. If internal capital is
expected to exceed the limit due to new business or expansion of operations, the capital adequacy of the
Group is managed by taking a preliminary review and approval process by the Risk Management Committee.
Details of the Group’s capital adequacy ratio as of December 31, 2020 and 2019 are as follows (Unit: Korean
Won in millions):
Details(*)
December 31, 2020
December 31, 2019
Tier 1 capital
Other Tier 1 capital
Tier 2 capital
Total risk-adjusted capital
Risk-weighted assets for credit risk
Risk-weighted assets for market risk
Risk-weighted assets for operational risk
Total risk-weighted assets
Common Equity Tier 1 ratio
Tier 1 capital ratio
Total capital ratio
19,828,094
3,533,648
4,086,035
27,447,777
178,114,590
6,086,905
14,067,185
198,268,680
10.00%
11.78%
13.84%
19,135,300
3,340,252
4,639,519
27,115,071
209,802,895
5,586,757
12,656,301
228,045,953
8.39%
9.86%
11.89%
(*) The above figures are prior to dividend reflection and may change to provisional values.
In evaluating the results of the Group and allocating resources, the Group’s Chief Operation Decision Maker
(“CODM”) utilizes the information per type of customers. With the establishment of Woori Financial Group
Inc. during the prior term, the Group reports to the CODM according to the organizational sectors below.
This financial information of the segments is regularly reviewed by the CODM to make decisions about
resources to be allocated to each segment and evaluate its performance.
(1) Segment by type of organization
The Group’s reporting segments consist of banking, credit card, comprehensive finance and other sectors,
and the composition of such reporting segments was divided based on internal report data periodically
reviewed by the management to evaluate the performance of the segment and make decisions on the
resources to be distributed.
Operational scope
Banking
Credit card
Comprehensive
finance
Others
Loans/deposits and relevant services for Woori Bank and overseas subsidiaries’ customers
Credit card, cash services, card loans and relevant work of Woori Card Co., Ltd.
Securities operation, sale of financial instruments, project financing and other related activities for
comprehensive financing of Woori Investment bank Co., Ltd.
Woori Financial Group Inc., Woori Financial Capital Co., Ltd., Woori Asset Trust Co., Ltd.,
Woori Asset Management Corp., Ltd., Woori Credit Information Co., Ltd., Woori Fund Services
Inc., Woori Private Equity Asset Management Co., Ltd., Woori Global Asset Management Co.,
Ltd., Woori FIS Co., Ltd. and Woori Finance Research Institute,
(2) The composition of each organization's sectors for the years ended December 31, 2020 and 2019 are as
follows (Unit: Korean Won in millions):
Banking
Credit card
Investment
banking
Others (*1)
Sub-total
Adjustments
(*2)
Total
For the year ended December 31, 2020
4,545,155
564,461
78,302
69,188
5,257,106
741,406
5,998,512
1,423,286
3,648
34,497 1,071,852
2,533,283
(1,710,849)
822,434
(512,008)
(195,816)
(4,146)
(43,660)
(755,630)
(28,741)
(784,371)
(3,545,186)
(207,301)
(39,039)
(416,595)
(4,208,121)
251,940
(3,956,181)
Net Interest
income(expense)
Non-interest
income(expense)
Impairment losses
due to credit loss
General and
administrative
expense
Net operating
income(expense)
1,911,247
164,992
69,614
680,785
2,826,638
(746,244)
2,080,394
Non-operating
income(expense)
Net income(expense)
before tax
Tax income(expense)
Net income(loss)
Total assets
Total liabilities
(57,027)
(5,569)
(775)
771
(62,600)
(16,543)
(79,143)
1,854,220
(437,288)
1,416,932
2,001,251
(486,002)
1,515,249
374,120,064 11,366,596 4,332,474 31,872,690 421,691,824 (22,610,807) 399,081,017
925,168 372,355,172
348,706,682 9,312,986 3,803,594 9,606,742 371,430,004
2,764,038
(511,755)
2,252,283
(762,787)
25,753
(737,034)
681,556
(29,372)
652,184
159,423
(39,193)
120,230
68,839
(5,902)
62,937
(*1) Other segments include gains and losses from Woori Financial Group Inc., Woori Financial Capital Co., Ltd.( Profit or
loss for 3 months after incorporation into subsidiary), Woori Asset Trust Co., Ltd., Woori Asset Management Corp.,
Woori Credit Information Co., Ltd., Woori Fund Service Inc., Woori Private Equity Asset Management Co., Ltd., Woori
Global Asset Management Co., Ltd., Woori FIS Co., Ltd. and Woori Finance Research Co., Ltd.,
(*2) Adjustments were made for the presentation of profit or loss in accordance with the Accounting Standards from the
reporting segments in accordance with the Managerial Accounting Standards.
254
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
For the year ended December 31, 2019
6. STATEMENTS OF CASH FLOWS
Banking
Credit card
Investment
banking
Others (*1)
Sub-total
Adjustments
(*2)
Total
4,583,386
553,956
54,077
2,290
5,193,709
699,997
5,893,706
1,557,247
31,842
33,539
957,880
2,580,508
(1,533,917)
1,046,591
(32,621)
(259,604)
(572)
(538)
(293,335)
(80,909)
(374,244)
(3,478,535)
(190,062)
(31,183)
(323,528)
(4,023,308)
257,231
(3,766,077)
Net Interest
income(expense)
Non-interest
income(expense)
Impairment losses
due to credit loss
General and
administrative
expense
Net operating
income(expense)
2,629,477
136,132
55,861
636,104
3,457,574
(657,598)
2,799,976
Non-operating
income(expense)
Net income(expense)
before tax
Tax income(expense)
Net income(loss)
Total assets
Total liabilities
(151,348)
13,889
(3,501)
(1,545)
(142,505)
65,578
(76,927)
2,478,129
(616,110)
1,862,019
2,723,049
(685,453)
2,037,596
347,819,743 10,087,342 3,398,960 21,681,769 382,987,814 (21,007,090) 361,980,724
339,323 336,488,392
323,592,850 8,299,175 3,031,622 1,225,422 336,149,069
3,315,069
(652,231)
2,662,838
(592,020)
(33,222)
(625,242)
150,021
(35,825)
114,196
634,559
(1,294)
633,265
52,360
998
53,358
(*1) Other segments include gains and losses from Woori Financial Group Inc., Woori Asset Management Corp., Woori Credit
Information Co., Ltd., Woori Fund Service Inc., Woori Private Equity Asset Management Co., Ltd. , Woori Global Asset
Management Co., Ltd., Woori FIS Co., Ltd. and Woori Finance Research Co., Ltd.,
(*2) Adjustments were made for the presentation of profit or loss in accordance with the Accounting Standards from the
reporting segments in accordance with the Managerial Accounting Standards.
(3) Operating profit or loss from external customers for the years ended December 31, 2020 and 2019 are
as follows (Unit: Korean Won in millions):
Details
Domestic
Foreign
Total
For the years ended December 31
2020
2019
1,869,516
210,878
2,080,394
2,500,504
299,472
2,799,976
(4) Major non-current assets as of December 31, 2020 and 2019 are as follows (Unit: Korean Won in
millions):
Details (*)
Domestic
Foreign
Total
December 31, 2020 (*)
December 31, 2019 (*)
5,026,161
433,869
5,460,030
4,908,141
387,284
5,295,425
(*) Major non-current assets included joint ventures and related business investments, investment properties,
property, plant and equipment, and intangible assets.
(5)
Information about major customers
The Group does not have any single customer that generates 10% or more of the Group’s total revenue for
the years ended December 31, 2020 and 2019.
(1) Details of cash and cash equivalents are as follows (Unit: Korean Won in millions):
Cash
Foreign currencies
Demand deposits
Fixed deposits
Total
December 31, 2020
1,611,282
514,565
7,314,353
550,783
9,990,983
December 31, 2019
1,957,997
625,999
3,684,044
124,526
6,392,566
(2) Significant transactions of investing activities and financing activities not involving cash inflows and
outflows are as follows (Unit: Korean Won in millions):
For the years ended December 31
2020
2019
Changes in other comprehensive income related to
valuation of financial assets at FVTOCI
Changes in other comprehensive income related to
valuation of equity method investments
Changes in other comprehensive income related to
valuation profit or loss on cash flow hedge
Changes in financial assets measure at FVTOCI due to
debt-for-equity swap
Changes in the investment assets of associates due to
the transfer of assets held-for-sale
Changes in financial assets at FVTPL and assets held-
for-sale
Transfer of investment properties and premises and
equipment
Transfer from property, plant and equipment to
assets held for sale
Changes in account payables related to
intangible assets
Changes in right-of-use assets and lease
liabilities
Comprehensive stock exchange
59,360
(2,298)
4,420
3,575
(50,411)
(2,385)
30,431
-
(11,639)
222,587
-
(14,141)
613
(1,823)
96,527
651
-
166,892
(95)
29,705
692,103
581,609
(3) Adjustments of liabilities from financing activities in current and prior year are as follows (Unit: Korean
Won in millions):
Borrowings
Debentures
Lease liabilities
Other liabilities
Total
Beginning
balance
18,998,920
30,858,055
419,045
23,909
50,299,929
Cash flow
2,033,851
913,836
(204,794)
3,971
2,746,864
For the year ended December 31, 2020
Not involving cash inflows and outflows
Variation of
gains on
valuation of
hedged
items
Business
Combination Others (*)
Ending
balance
-
58,861
-
-
58,861
298,854
5,980,746
3,751
-
6,283,351
56 20,745,466
(42,099) 37,479,358
407,431
194,570
(1,526)
26,354
151,001 58,658,609
Foreign
Exchange
(586,215)
(290,041)
(5,141)
-
(881,397)
256
- 73 -
- 74 -
257
(*) The change in lease liabilities due to the new contract includes 231,325 million won.
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
For the year ended December 31, 2019
Not involving cash inflows and outflows
Borrowings
Debentures
Lease liabilities(*)
Total
Beginning
balance
Cash flow
16,202,986 3,081,757
28,735,862 1,858,763
377,030
(217,867)
45,315,878 4,722,652
Variation of
gains on
valuation of
hedged
items
-
85,984
-
85,984
Foreign
Exchange
(285,607)
155,433
(819)
(130,993)
Business
Ending
balance
Combination Others
-
-
5,552
5,552
(216) 18,998,920
22,013 30,858,055
419,045
255,149
276,947 50,276,020
(*) The amount of lease liability at the beginning of the current in applying Korean IFRS 1116 is reflected.
7.
FINANCIAL ASSETS AT FVTPL
(1) Details of financial assets at FVTPL as of December 31, 2020 and 2019 are as follows (Unit: Korean
Won in millions):
Financial assets at fair value through profit or loss
measured at fair value
14,762,941
8,069,144
December 31, 2020
December 31, 2019
(2) Financial assets at fair value through profit or loss measured at fair value as of December 31, 2020 and
2019 are as follows (Unit: Korean Won in millions):
Deposits:
Gold banking asset
Securities:
Debt securities
Korean treasury and government agencies
Financial institutions
Corporates
Others
Equity securities
Capital contributions
Beneficiary certificates
Loans
Derivatives assets
Sub-total
Total
December 31, 2020
December 31, 2019
48,796
27,901
1,020,418
873,031
761,681
231,967
570,772
865,685
2,812,558
7,136,112
676,291
6,901,742
14,762,941
872,954
600,303
762,265
101,563
688,350
515,199
1,366,233
4,906,867
212,473
2,921,903
8,069,144
The Group does not have financial assets at fair value through profit or loss designated as upon initial
recognition as of December 31, 2020 and 2019.
8.
FINANCIAL ASSETS AT FVTOCI
(1) Details of financial assets at FVTOCI as of December 31, 2020 and 2019 are as follows (Unit: Korean
Won in millions):
Debt securities:
Korean treasury and government agencies
Financial institutions
Corporates
Bond denominated in foreign currencies
Securities loaned
Equity securities
Sub-total
Total
December 31, 2020
December 31, 2019
2,922,671
17,996,660
3,896,744
4,031,721
100,345
28,948,141
1,080,788
30,028,929
1,152,711
17,769,924
3,917,004
3,874,785
80,737
26,795,161
935,370
27,730,531
(2) Details of equity securities designated as financial assets at FVTOCI as of December 31, 2020 and 2019
are as follows (Unit: Korean Won in millions):
Purpose of acquisition
Investment for strategic business
partnership purpose
Debt-equity swap
Others
Total
December 31,
2020
December 31,
2019
Remarks
778,657
302,090
41
1,080,788
678,846
256,480
44
935,370
Cooperative insurance, etc.
(3) Changes in the loss allowance and gross carrying amount of financial assets at FVTOCI are as follows
(Unit: Korean Won in millions):
1) Allowance for credit losses
For the year ended December 31, 2020
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net provision of loss allowance
Disposal
Others (*)
Ending balance
(*) Others consist of foreign currencies translation, etc.
Stage 1
(8,569)
-
-
-
(1,529)
764
(297)
(9,631)
Stage 2
Stage 3
-
-
-
-
-
-
-
-
Total
(8,569)
-
-
-
(1,529)
764
(297)
(9,631)
-
-
-
-
-
-
-
-
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net provision (reversal) of loss allowance
Disposal
Others (*)
Ending balance
(*) Others consist of foreign currencies translation, etc.
For the year ended December 31, 2019
Stage 1
Stage 2
Stage 3
Total
(5,939)
-
-
-
(3,297)
615
52
(8,569)
(238)
-
-
-
-
238
-
-
-
-
-
-
-
-
-
-
(6,177)
-
-
-
(3,297)
853
52
(8,569)
258
- 75 -
- 76 -
259
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
2) Gross carrying amount
(2) Changes in the loss allowance and gross carrying amount of securities at amortized cost are as follows
For the year ended December 31, 2020
Stage 1
Stage 2
Stage 3
Total
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Acquisition
Disposal / Recovery
Gain (loss) on valuation
Amortization based on effective interest
method
Others (*)
Ending balance
26,795,161
-
-
-
22,970,010
(20,530,076)
17,957
(12,545)
(292,366)
28,948,141
(*) Changes due to foreign currencies translation, etc.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
26,795,161
-
-
-
22,970,010
(20,530,076)
17,957
(12,545)
(292,366)
28,948,141
For the year ended December 31, 2019
Stage 1
Stage 2
Stage 3
Total
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Acquisition
Disposal / Recovery
Gain (loss) on valuation
Amortization based on effective interest
method
Business combination
Others (*)
Ending balance
17,087,096
-
-
-
23,774,375
(14,224,358)
48,956
14,629
24,985
69,478
26,795,161
25,153
-
-
-
-
(25,000)
(153)
-
-
-
-
(*) Changes due to foreign currencies translation, etc.
-
-
-
-
-
-
-
-
-
-
-
17,112,249
-
-
-
23,774,375
(14,249,358)
48,803
14,629
24,985
69,478
26,795,161
(4) During the years ended December 31, 2020 and 2019, the Group sold its equity securities., designated as
financial assets at FVTOCI in accordance with decision of disposal by the creditors, and the fair values
at disposal dates were 2,848 million won and 34,841 million won, respectively and cumulative losses at
disposal dates were 3,665 million won and 38,995 million won, respectively.
9.
SECURITIES AT AMORTIZED COST
(1) Details of securities at amortized cost as of December 31, 2020 and 2019 are as follows (Unit: Korean
Won in millions):
Korean treasury and government agencies
Financial institutions
Corporates
Bond denominated in foreign currencies
Allowance for credit losses
Total
December 31, 2020
December 31, 2019
6,947,495
4,843,534
4,726,075
508,301
(4,566)
17,020,839
8,044,040
6,694,614
5,068,489
518,907
(5,511)
20,320,539
(Unit: Korean Won in millions):
1) Loss allowance
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net reversal of loss allowance
Others (*)
Ending balance
(*) Changes due to foreign currencies translation, etc.
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net reversal of loss allowance
Others (*)
Ending balance
(*) Changes due to foreign currencies translation, etc.
2) Gross carrying amount
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Acquisition
Disposal / Recovery
Amortization based on effective interest method
Others (*)
Ending balance
(*) Changes due to foreign currencies translation, etc.
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Acquisition
Disposal / Recovery
Amortization based on effective interest method
Others (*)
Ending balance
(*) Changes due to foreign currencies translation, etc.
For the year ended December 31, 2020
Stage 1
Stage 2
Stage 3
Total
(5,511)
-
-
-
934
11
(4,566)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(5,511)
-
-
-
934
11
(4,566)
For the year ended December 31, 2019
Stage 1
Stage 2
Stage 3
Total
(6,924)
-
-
-
1,415
(2)
(5,511)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,924)
-
-
-
1,415
(2)
(5,511)
For the year ended December 31, 2020
Stage 1
20,326,050
-
-
-
2,380,448
(5,659,365)
(396)
(21,332)
17,025,405
Stage 2
Stage 3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
For the year ended December 31, 2019
Stage 1
22,939,484
-
-
-
6,092,078
(8,709,947)
(3,286)
7,721
20,326,050
Stage 2
Stage 3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
20,326,050
-
-
-
2,380,448
(5,659,365)
(396)
(21,332)
17,025,405
Total
22,939,484
-
-
-
6,092,078
(8,709,947)
(3,286)
7,721
20,326,050
260
- 77 -
- 78 -
261
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
10. LOANS AND OTHER FINANCIAL ASSETS AT AMORTIZED COST
(1) Details of loans and other financial assets at amortized cost as of December 31, 2020 and 2019 are as
follows (Unit: Korean Won in millions):
Due from banks
Loans
Other financial assets
Total
December 31, 2020
December 31, 2019
9,863,160
302,794,182
7,448,736
320,106,078
14,492,223
271,032,244
8,193,226
293,717,693
(2) Details of due from banks are as follows (Unit: Korean Won in millions):
December 31, 2020
December 31, 2019
Due from banks in local currency:
Due from The Bank of Korea (“BOK”)
Due from depository banks
Due from non-depository institutions
Due from the Korea Exchange
Others
Loss allowance
Sub-total
Due from banks in foreign currencies:
Due from banks on demand
Due from banks on time
Others
Loss allowance
Sub-total
Total
6,519,226
84,195
266
227
172,914
(1,576)
6,775,252
-
1,608,126
296,489
1,186,083
(2,790)
3,087,908
9,863,160
11,028,850
82,509
378
50,113
43,253
(2,865)
11,202,238
1,122,521
1,296,842
872,617
(1,995)
3,289,985
14,492,223
(3) Details of restricted due from banks are as follows (Unit: Korean Won in millions):
Counterparty
December 31, 2020
Reason of restriction
Due from banks in local currency:
Due from BOK The BOK
Due from
KSFC
Others
KB Securities Co. Ltd.
Korea Federation of
Savings Banks and
others
Sub-total
Due from banks in foreign currencies:
6,519,226
Reserve deposits
under the BOK Act
227
Futures trading margin
Guarantees, mortgage of
domestic exchange
transactions and others
89,562
6,609,015
Due from banks
on demand
Foreign
currency
deposits on
time
Others
The BOK and others
National Bank Cambodia
Reserve deposits under the BOK
1,544,492
Act and others
Korea Investment &
Securities and others
Sub-total
Total
1,180,570
2,725,116
9,334,131
Overseas futures and options
trade deposits and others
54
Reserve deposits and others
Counterparty
December 31, 2019
Reason of restriction
Due from banks in local currency:
Due from BOK The BOK
Due from
KSFC
Others
Korea Securities Finance
Corp. and others
The Korea Exchange and
others
Sub-total
Due from banks in foreign currencies:
Due from banks
on demand
Foreign
currency
deposits on
time
Others
The BOK and others
National Bank Cambodia
Korea Investment &
Securities and others
Sub-total
Total
11,028,850
Reserve deposits
under the BOK Act
50,113
41,645
11,120,608
Customer’s deposit reserve
Central counterparty KRW
margin and others
1,103,917
Reserve deposits under the
BOK Act and others
Reserve deposits and others
Overseas futures and options
trade deposits and others
58
872,603
1,976,578
13,097,186
(4) Changes in the loss allowance and gross carrying amount of due from banks are as follows (Unit: Korean
Won in millions):
1) Allowance for credit losses
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Reversal for allowance for credit loss
Others (*)
Ending balance
(*) Changes due to foreign currencies translation, etc.
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Reversal for allowance for credit loss
Others (*)
Ending balance
(*) Changes due to foreign currencies translation, etc.
For the year ended December 31, 2020
Stage 1
Stage 2
Stage 3
Total
(4,860)
-
-
-
315
179
(4,366)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(4,860)
-
-
-
315
179
(4,366)
For the year ended December 31, 2019
Stage 1
Stage 2
Stage 3
Total
(5,387)
-
-
-
544
(17)
(4,860)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(5,387)
-
-
-
544
(17)
(4,860)
262
- 79 -
- 80 -
263
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
2) Gross carrying amount
(6) Changes in the loss allowance of loans are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2020
Consumers
Stage 2
Corporates
Stage 2
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net reversal(provision) of loss allowance
Recovery
Charge-off
Disposal
Interest income from impaired loans
Business combination
Others
Ending balance
Stage 1
(85,148)
(20,839)
9,137
3,549
5,142
-
-
-
-
(31,327)
(2,041)
(121,527)
Stage 3
20,050
(10,800)
4,913
Stage 3
Stage 1
(77,962) (125,588) (324,258) (297,718) (390,045)
25,067
4,050
(29,117)
28,925
(48,184)
19,259
3,607
(13,956)
10,349
2,831 (200,024) (271,265)
(66,179)
-
243,634
-
47,106
-
14,945
-
(24,364)
(13,703)
38,405
13,921
(84,463) (205,693) (327,460) (521,907) (388,744)
789
1,663
(8,462)
(10,042) (125,923)
(71,277)
181,713
5,640
10,790
(72,040)
(2,998)
-
-
-
-
(15,129)
4,507
-
-
13
-
(18,164)
6,754
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net reversal(provision) of loss allowance
Recovery
Charge-off
Disposal
Interest income from impaired loans
Business combination
Others
Ending balance
For the year ended December 31, 2020
Total
Stage 2
Credit card accounts
Stage 2
Stage 1
(74,726)
(14,978)
9,341
627
17,022
-
-
-
-
-
2
(62,712)
Stage 3
14,755
(9,742)
1,137
Stage 3
Stage 1
(71,533) (128,042) (484,132) (447,213) (643,675)
59,872
5,062
(64,934)
(68,726)
30,989
37,737
7,783
(24,182)
16,399
24,995 (235,164) (577,060)
- (203,482)
-
671,237
-
-
76,399
13
-
25,735
-
-
(96,404)
(33,293)
(45,030)
35,407
11,261
11,882
(90,481) (105,537) (511,699) (696,851) (699,974)
223
401
(1,764)
(25,098) (179,872)
(66,026)
245,890
23,653
-
-
-
-
-
-
-
-
-
For the year ended December 31, 2020
Stage 1
Stage 2
Stage 3
Total
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net decrease
Business combination
Others (*)
Ending balance
14,497,083
-
-
-
(4,759,053)
129,825
(329)
9,867,526
(*) Changes due to foreign currencies translation, etc.
-
-
-
-
-
-
-
-
- 14,497,083
-
-
-
-
-
-
(4,759,053)
-
129,825
-
(329)
-
9,867,526
-
For the year ended December 31, 2019
Stage 1
Stage 2
Stage 3
Total
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net decrease
Business combination
Others (*)
Ending balance
14,156,399
-
-
-
313,991
35,910
(9,217)
14,497,083
(*) Changes due to foreign currencies translation, etc.
(5) Details of loans are as follows (Unit: Korean Won in millions):
-
-
-
-
-
-
-
-
- 14,156,399
-
-
-
-
-
-
313,991
-
35,910
-
-
(9,217)
- 14,497,083
December 31, 2020
December 31, 2019
Loans in local currency
Loans in foreign currencies (*)
Domestic banker’s usance
Credit card accounts
Bills bought in foreign currencies
Bills bought in local currency
Factoring receivables
Advances for customers on guarantees
Private placement bonds
Securitized loans
Call loans
Bonds purchased under resale agreements
Financial lease receivables
Installment financial bond
Others
Loan origination costs and fees
Discounted present value
Allowance for credit losses
Total
249,264,947
20,025,092
2,240,830
8,542,619
5,763,427
133,650
38,017
31,300
353,585
2,561,914
2,352,034
10,145,749
586,216
1,925,493
380
744,109
(6,656)
(1,908,524)
302,794,182
221,484,049
18,534,270
2,899,651
8,398,605
4,772,093
61,362
20,905
12,616
307,339
2,250,042
3,290,167
8,981,752
226,296
752,961
1,191
620,791
(6,826)
(1,575,020)
271,032,244
(*) As of December 31, 2020, 50,088 million won of assets provided for collateral related to the bonds sold under
repurchase agreements are included.
264
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
For the year ended December 31, 2019
(7) Changes in the gross carrying amount of loans are as follows (Unit: Korean Won in millions):
Consumers
Stage 2
Corporates
Stage 2
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net reversal(provision) of loss allowance
Recovery
Charge-off
Disposal
Interest income from impaired loans
Business combination
Others
Ending balance
Stage 1
(114,509)
(14,430)
14,022
8,603
21,802
-
-
-
-
-
(636)
(85,148)
Stage 3
Stage 3
Stage 1
(48,368) (129,906) (348,311) (349,619) (527,673)
769
8,653
(58,537)
13,661
49,884
1,310
12,258
8,215
(15,332)
(20,473)
(21,160)
10,312
3,308
(18,915)
17,852
(75,392)
86,565
(38,203) (146,204)
6,855
-
-
-
(66,359)
(61,914)
- 222,537
-
- 217,382
42,095
1
-
2,763
-
17,887
-
9,647
-
-
(3,150)
(2,008)
-
-
(9)
259
(210)
(15,489)
(520)
(32)
(77,962) (125,588) (324,258) (297,718) (390,045)
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Net reversal(provision) of loss allowance
Recovery
Charge-off
Disposal
Interest income from impaired loans
Business combination
Others
Ending balance
For the year ended December 31, 2019
Total
Stage 2
Credit card accounts
Stage 2
Stage 1
(64,787)
(15,712)
6,031
98,647
(98,888)
-
-
-
-
-
(17)
(74,726)
Stage 1
Stage 3
Stage 3
(78,131) (116,772) (527,607) (476,118) (774,351)
9,903
(88,679)
78,776
(42,122)
28,268
13,854
122,280 (232,838)
110,558
9,479 (127,782) (261,939)
- (188,638)
-
721,339
-
-
44,858
1
-
27,534
-
-
(3,150)
(2,008)
(9)
(247)
(240)
(16,142)
(71,533) (128,042) (484,132) (447,213) (643,675)
481
15,231
(6,317)
286
94,116 (192,763)
(40,343)
(60,365)
281,420
-
-
-
14
(96,434)
-
-
-
-
-
2
For the year ended December 31, 2020
Stage 1
Consumers
Stage 2
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Charge-off
Disposal
Net increase (decrease)
Business combination
Ending balance
111,253,283 12,448,807
4,564,471 (4,552,400)
(5,365,577) 5,388,064
(103,016)
(96,197)
-
-
-
-
13,326,560 (1,289,910)
2,307,498
125,166
125,990,038 12,016,711
Corporates
Stage 2
Stage 3
Stage 1
417,674 134,443,979 4,910,598
1,160,399 (1,146,756)
(12,071)
(3,983,614) 4,023,106
(22,487)
(357,386)
(120,491)
199,213
-
-
(181,713)
-
(398)
(55,349)
(696,164)
14,804,391
54,503
137,336
358,846
3,507,163
537,106 149,574,932 7,328,741
Stage 3
740,257
(13,643)
(39,492)
477,877
(243,634)
(163,644)
(64,490)
24,678
717,909
For the year ended December 31, 2020
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Charge-off
Disposal
Net increase (decrease)
Business combination
Ending balance
Credit card accounts
Stage 2
Stage 3
Stage 1
7,278,467
257,399
(454,230)
(26,947)
-
-
224,286
-
885,832
(257,144)
454,709
(10,796)
-
-
5,619
-
7,278,975 1,078,220
Stage 1
228,367 252,975,729
5,982,269
(255)
(9,803,421)
(479)
(480,530)
37,743
-
(245,890)
(43,781)
-
204,369 28,355,237
5,814,661
180,074 282,843,945
-
Total
Stage 2
Stage 3
18,245,237 1,386,298
(25,969)
(5,956,300)
(62,458)
9,865,879
(234,303)
714,833
(671,237)
-
(262,774)
(398)
194,382
(1,980,455)
162,014
484,012
20,423,672 1,435,089
For the year ended December 31, 2019
Stage 1
Consumers
Stage 2
Stage 3
Stage 1
Corporates
Stage 2
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Charge-off
Disposal
Net increase (decrease)
Business combination
Ending balance
110,619,242 6,028,009
2,626,998 (2,614,767)
(8,238,499) 8,256,600
(104,129)
-
(55)
883,149
-
111,253,283 12,448,807
(152,128)
-
-
6,397,570
100
391,494 131,453,727 5,031,258
1,560,734 (1,550,164)
(12,231)
(2,306,186) 2,341,881
(18,101)
(142,902)
256,257
-
(217,382)
(67,924)
(70)
(809,566)
85,561
40,161
-
417,674 134,443,979 4,910,598
(252,249)
-
-
3,985,392
2,561
Stage 3
1,020,658
(10,570)
(35,695)
395,151
(222,537)
(161,318)
(266,432)
21,000
740,257
For the year ended December 31, 2019
Credit card accounts
Stage 2
Stage 3
Stage 1
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Charge-off
Disposal
Net increase (decrease)
Business combination
Ending balance
Stage 1
6,861,844
258,674
(307,100)
(124,675)
-
-
589,724
-
7,278,467
982,772
(258,166)
307,450
(104,712)
-
-
(41,512)
-
885,832
229,387
(281,420)
-
208,989 248,934,813
(508)
4,446,406
(350) (10,851,785)
(529,052)
-
-
72,269 10,972,686
2,661
228,367 252,975,729
-
Total
Stage 2
Stage 3
12,042,039 1,621,141
(23,309)
(4,423,097)
(54,146)
10,905,931
880,795
(351,743)
(721,339)
-
(229,242)
(125)
(108,602)
32,071
21,000
40,161
18,245,237 1,386,298
266
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(8) Details of other financial assets are as follows (Unit: Korean Won in millions):
(10) Changes in the gross carrying amount of other financial assets are as follows (Unit: Korean Won in
Cash Management Account asset (CMA asset)
Receivables
Accrued income
Telex and telephone subscription rights and refundable deposits
Domestic exchange settlement debit
Other assets
Allowance for credit losses
Total
December 31, 2020
December 31, 2019
210,000
3,809,929
864,107
936,878
1,518,775
192,342
(83,295)
7,448,736
199,000
5,653,997
1,012,240
949,118
373,228
82,782
(77,139)
8,193,226
(9) Changes in the allowances for credit losses on other financial assets are as follows (Unit: Korean Won
in millions):
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Provision of loss allowance
Charge-off
Disposal
Business combination
Others
Ending balance
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Reversal (provision) of loss allowance
Charge-off
Disposal
Business combination
Others
Ending balance
For the year ended December 31, 2020
Stage 1
Stage 2
Stage 3
(3,196)
(142)
125
23
(667)
-
-
(624)
815
(3,666)
(1,666)
129
(155)
64
(1,589)
-
-
(2,235)
2
(5,450)
(72,277)
13
30
(87)
(3,080)
2,151
1,557
(1,968)
(518)
(74,179)
For the year ended December 31, 2019
Stage 1
Stage 2
Stage 3
(3,469)
(207)
116
19
802
-
-
(401)
(56)
(3,196)
(1,971)
198
(43)
159
(9)
-
-
-
-
(1,666)
(62,501)
9
(73)
(178)
(6,854)
2,506
1,685
(7,268)
397
(72,277)
Total
(77,139)
-
-
-
(5,336)
2,151
1,557
(4,827)
299
(83,295)
Total
(67,941)
-
-
-
(6,061)
2,506
1,685
(7,669)
341
(77,139)
millions):
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Charge-off
Disposal
Net increase (decrease)
Business combination
Ending balance
Beginning balance
Transfer to 12-month expected credit losses
Transfer to lifetime expected credit losses
Transfer to credit-impaired financial assets
Charge-off
Disposal
Net increase (decrease)
Business combination
Ending balance
For the year ended December 31, 2020
Stage 1
8,059,844
8,760
(15,305)
(1,900)
-
-
(856,008)
72,035
7,267,426
Stage 2
92,647
(8,737)
15,334
(701)
-
-
(26,539)
4,414
76,418
Stage 3
117,874
(23)
(29)
2,601
(2,151)
(1,847)
69,500
2,262
188,187
For the year ended December 31, 2019
Stage 1
7,454,390
8,036
(17,678)
(952)
-
-
606,457
9,591
8,059,844
Stage 2
28,193
(8,019)
17,740
(918)
-
-
55,651
-
92,647
Stage 3
72,007
(17)
(62)
1,870
(2,506)
(2,212)
41,138
7,656
117,874
Total
8,270,365
-
-
-
(2,151)
(1,847)
(813,047)
78,711
7,532,031
Total
7,554,590
-
-
-
(2,506)
(2,212)
703,246
17,247
8,270,365
268
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269
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
11. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
(1) The fair value hierarchy
The fair value hierarchy for financial instruments is determined by the amount of observable market data.
The specific financial instruments characteristics and market condition such as the existence of the
transactions among market participants and transparency are reflected to the market observable inputs. The
fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical
assets or liabilities. The Group maximizes the use of observable inputs and minimizes the use of
unobservable inputs when measuring fair value of its financial assets and financial liabilities. Fair value is
measured based on the perspective of a market participant. As such, even when market assumptions are not
readily available, the Group’s own assumptions reflect those that market participants would use for
measuring the assets or liabilities at the measurement date.
The fair value measurement is described in the one of the following three levels used to classify fair value
measurements:
•
•
•
Level 1—fair value measurements are those derived from quoted prices (unadjusted) in active markets
for identical assets or liabilities. The types of financial assets or liabilities generally included in Level
1 are publicly traded equity securities, derivatives, and debt securities issued by governmental bodies.
Level 2— fair value measurements are those derived from inputs other than quoted prices included
within Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e.
derived from prices). The types of financial assets or liabilities generally included in Level 2 are debt
securities not traded in active markets and derivatives traded in OTC but not required significant
judgment.
Level 3— fair value measurements are those derived from valuation technique that include inputs for
the assets or liabilities that are not based on observable market data (unobservable inputs). The types
of financial assets or liabilities generally included in Level 3 are non-public securities and derivatives
and debt securities of which valuation techniques require significant judgments and subjectivity.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such
cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to
the fair value measurement. The Group’s assessment of the significance of a particular input to a fair
value measurement in its entirety requires judgment and consideration of inherent factors of the asset or
liability.
(2) Fair value hierarchy of financial assets and liabilities measured at fair value are as follows (Unit:
Korean Won in millions):
Financial assets:
Financial assets at FVTPL
Deposits
Debt securities
Equity securities
Capital contributions
Beneficiary certificates
Loans
Derivative assets (Designated for trading)
Others
Sub-total
Financial assets at FVTOCI
Debt securities
Equity securities
Derivative assets (Designated for hedging)
Total
Sub-total
Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers
Derivative liabilities (Designated for
trading)
Securities sold
Sub-total
Financial liabilities at FVTPL designated as
upon initial recognition
Equity-linked securities
Derivative liabilities (Designated for
hedging)
Total
Level 1 (*)
Level 2 (*)
Level 3
Total
December 31, 2020
48,796
516,597
35,422
-
24,895
-
18,416
-
644,126
3,092,237
510,073
3,602,310
-
4,246,436
-
2,365,882
-
-
869,852
467,229
6,875,454
-
10,578,417
25,855,904
-
25,855,904
174,820
36,609,141
-
4,618
450,371
865,685
1,917,811
209,062
7,872
84,979
3,540,398
48,796
2,887,097
485,793
865,685
2,812,558
676,291
6,901,742
84,979
14,762,941
-
570,715
570,715
-
4,111,113
28,948,141
1,080,788
30,028,929
174,820
44,966,690
49,279
-
-
49,279
6,024
285,026
340,329
6,433,727
-
6,433,727
20,136
-
20,136
6,459,887
285,026
6,794,192
-
-
19,630
19,630
-
340,329
64,769
6,498,496
-
39,766
64,769
6,878,591
(*) There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at fair value.
The Group recognizes transfers among levels at the end of reporting period in which events have occurred or
conditions have changed.
270
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Financial assets:
Financial assets at FVTPL
Deposits
Debt securities
Equity securities
Capital contributions
Beneficiary certificates
Loans
Derivative assets (Designated for trading)
Sub-total
Financial assets at FVTOCI
Debt securities
Equity securities
Securities loaned
Sub-total
Derivative assets (Designated for hedging)
Total
Financial liabilities:
Financial liabilities at FVTPL
Deposits due to customers
Derivative liabilities (Designated for
trading)
Sub-total
Financial liabilities at FVTPL designated as
upon initial recognition
Equity-linked securities
Derivative liabilities (Designated for
hedging)
Total
Level 1 (*)
Level 2 (*)
Level 3
Total
December 31, 2019
27,901
420,330
157,895
-
1
-
3,057
609,184
-
1,910,929
1,834
-
90,498
59,844
2,893,798
4,956,903
2,146,163
441,672
-
2,587,835
-
3,197,019
24,568,261
-
80,737
24,648,998
121,131
29,727,032
-
5,826
528,621
515,199
1,275,734
152,629
25,048
2,503,057
-
493,698
-
493,698
-
2,996,755
27,901
2,337,085
688,350
515,199
1,366,233
212,473
2,921,903
8,069,144
26,714,424
935,370
80,737
27,730,531
121,131
35,920,806
27,530
4,336
31,866
-
-
27,530
2,766,771
2,766,771
72,039
72,039
2,843,146
2,870,676
-
-
87,626
87,626
-
31,866
6,516
2,773,287
321
159,986
6,837
2,965,139
(*) There were no transfers between Level 1 and Level 2 of financial assets and liabilities measured at fair value.
The Group recognizes transfers among levels at the end of reporting period in which events have occurred or
conditions have changed.
Financial assets and liabilities at FVTPL, financial liabilities at FVTPL designated as upon initial
recognition, financial assets at FVTOCI, and derivative assets and liabilities are recognized at fair value. Fair
value is the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly
transaction between market participants at the measurement date.
Financial instruments are measured at fair value using a quoted market price in active markets. If there is no
active market for a financial instrument, the Group determines the fair value using valuation methods.
Valuation methods and input variables for each type of financial instruments are as follows:
1) Valuation methods and input variables for each type of financial instrument classified into level 2 in
December 31, 2020 and 2019 are as follows:
Debt securities
Beneficiary certificates
Valuation methods
Fair value is measured by discounting the future cash
flows of debt securities applying the risk-free market
rate with credit spread.
The beneficiary certificates classified as Level 2 are
MMF and are measured at the standard price.
Input variables
Risk-free market rate and credit spread
Standard price
Derivatives
Fair value is measured by models such as option
Discount rate, values of underlying
model (Closed form), DCF model, FDM and Monte
Carlo Simulation.
assets such as foreign exchange rate
and stock prices, risk-free market
rate, forward rate, etc.
Loans
The future cash flows of debt instruments are
Risk-free market rate and credit spread
measured at a discount by applying the market
interest rate applied to entities with similar
creditworthiness to the debtor.
2) Valuation methods and input variables for each type of financial instrument classified into level 3 in
December 31, 2020 and 2019 are as follows:
Loans, bond with options
Valuation methods
Fair value is calculated by using the Discounted Cash
Flow Model, Binomial Tree, which is a valuation
technique commonly used in the market taking into
account the price and variability of the underlying
asset, and LSMC.
Input variables
Values of underlying assets, volatility,
credit spread, discount rate and
terminal growth rate
Debt securities
The Group is measuring fair value with LSMC and the
Stock volatility, interest rate volatility
Equity securities, capital
contributions and
Beneficiary certificates
Hull-White model.
Among DCF (Discounted Cash Flow) Model, FCFE
(Free Cash Flow to Equity) Model, Comparable
Company Analysis, Dividend Discount Model, Risk-
adjusted Rate of Return Method, Net Asset Value
Method, LSMC, and Binomial Tree, more than one
method is used given the characteristic of the subject
of fair value measurement.
and discount rate
Risk-free market rate, market risk
premium, corporate Beta, stock
prices, volatility of underlying
asset, net asset of the investment
association and discount rate
Derivatives
Fair value is measured by models such as option model
Risk-free market rate, discount rate,
(Closed form), DCF model, FDM and Monte Carlo
Simulation.
values of underlying assets such as
foreign exchange rate and stock
prices, volatility, etc.
Equity-linked securities
Fair value is measured by models such as option model
Volatility of underlying assets,
(Closed form), DCF model, FDM and Monte Carlo
Simulation.
Others
Fair value is measured by DCF model, LSMC, etc.
discount rate, dividends, volatility,
correlation coefficient, foreign
exchange rate, etc.
Stock prices, volatility of underlying
assets, etc.
272
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Valuation methods of financial assets and liabilities measured at fair value and classified into Level 3 and
significant but unobservable inputs are as follows:
Loans, bond with
options,
convertible
bonds
Fair value
measurement
technique
Binomial Tree
LSMC
DCF model
Type
Input variable
Range(%)
Stock prices,
Volatility of
underlying
asset
Stock prices,
Volatility of
underlying
asset
Discount rate
Impact of changes in significant
unobservable inputs on fair value
measurement
Variation of fair value increases as
volatility of underlying asset
increases.
Variation of fair value increases as
volatility of underlying asset
increases.
19.82~22.84%
18.99%
4.70~16.50%
decreases.
Fair value increases as discount rate
Terminal growth
rate
Credit spread
Fair value increases as terminal
1.00%
growth rate increases.
Fair value decreases as credit spread
2.30~5.90%
increases.
Hull-White model
Stock volatility
Fair value increases as volatility
17.50~27.30%
increases.
Interest rate
volatility
Discount rate
Fair value increases as volatility
0.50%
increases.
Fair value increases as discount rate
3.10~53.20%
decreases.
Derivative assets Option valuation
Interest rate
Correlation
model and
others
related
coefficient
Variation of fair value increases as
correlation coefficient increases.
Fair value
measurement
technique
Equity securities,
LSMC
capital
contributions,
and beneficiary
certificates
DCF model and
others
Others
Net asset value
method
Binomial Tree
Income
approach
LSMC
Type
Input variable
Range(%)
Impact of changes in significant
unobservable inputs on fair value
measurement
Variation of fair value increases as
volatility of underlying asset
increases.
18.99~26.45%
Fair value increases as terminal
1.00%
growth rate increases.
Fair value increases as discount rate
5.83~34.63%
decreases.
Fair value increases as sales price
increases
-
-
Variation of liquidation value
increases as volatility of underlying
assets increases
Fair value increases as discount rate
14.30%
decreases.
Fair value increases as volatility
39.60%
increases.
Fair value increases as discount rate
8.50%
decreases.
Fair value increases as discount rate
12.69%
decreases.
Fair value increases as growth rate
1.00%
increases.
Variation of fair value increases as
volatility of underlying asset
increases.
17.61~26.45%
Stock prices,
Volatility of
underlying
asset
Terminal growth
rate
Discount rate
Fluctuation rate
of real estate
sales price
Liquidation
value
Discount rate
Volatility
Discount rate
Discount rate
Growth rate
Stock prices,
Volatility of
underlying
asset
Variation of fair value increases as
volatility of underlying assets
increases.
Variation of fair value increases as
correlation coefficient increases.
Variation of fair value increases as
volatility of underlying assets
increases.
Variation of fair value decreases as
credit risk adjustment ratio increases.
Variation of fair value increases as
correlation coefficient increases.
Fair value of financial assets and liabilities classified into Level 3 is measured by the Group using its own
valuation methods or using external specialists. Unobservable inputs used in the fair value measurements are
produced by the internal system of the Group and the appropriateness of inputs is reviewed regularly.
Volatility of
underlying
asset
0.90~0.98
25.46~131.47%
0.29~0.75
-
100.00%
0.90~0.98
Equity related Correlation
coefficient
Derivative
liabilities
DCF model
Interest rate
related
Option valuation
Interest rate
model and
others
related
Volatility of
underlying
asset
Credit risk
adjustment
ratio
Correlation
coefficient
Volatility of
underlying
asset
Equity related Correlation
coefficient
Volatility of
underlying
asset
Equity related Correlation
coefficient
Volatility of
underlying
asset
Equity-linked
securities
Monte Carlo
Simulation and
others
25.46~131.47%
Variation of fair value increases as
volatility of underlying assets
increases.
Variation of fair value increases as
correlation coefficient increases.
0.29~0.75
-
0.48~0.60
27.59~49.29%
Variation of fair value increases as
volatility of underlying assets
increases.
Fair value of equity-linked securities
increases if both historical volatility
and correlation coefficient increase.
However, when correlation
coefficient decreases despite the
increase in historical volatility, the
fair value variation of equity-linked
securities may decrease.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(3) Changes in financial assets and liabilities measured at fair value classified into Level 3 are as follows
(Unit: Korean Won in millions):
Beginning
balance
Business
combination
Net income
(loss) (*1)
Other
comprehensive
income
Purchases/
issuances
Disposals /
settlements
Transfer to
or out of
Level 3 (*2)
Ending
balance
For the year ended December 31, 2020
Financial assets:
Financial assets at
FVTPL
Debt securities
Equity securities
Capital contributions
Beneficiary
certificates
Loans
Derivative assets
Others
Sub-total
Financial assets at
FVTOCI
Equity securities
Total
Financial liabilities:
Financial liabilities at
FVTPL
Derivative liabilities
Financial liabilities at
FVTPL designated
as upon initial
recognition
Equity-linked
securities
Derivative liabilities
(Designated for
hedging)
Total
5,826
464,741
515,199
1,275,734
152,629
25,048
63,880
2,503,057
-
493,698
2,996,755
-
3,894
173,244
166,467
35,854
-
-
379,459
-
379,459
(632)
(8,977)
39,500
(7,919)
6,149
9,458
3,472
41,051
-
-
41,051
-
-
-
2,627
5,088
194,396
715,437
-
656,880
-
9,501
-
17,997
-
- 1,601,926
(3,203)
(14,407)
(56,654)
(231,908)
(642,450)
(23,911)
(370)
(972,903)
-
32
-
4,618
450,371
865,685
- 1,917,811
-
209,062
(12,224)
7,872
-
84,979
(12,192) 3,540,398
-
-
82,227
(4,920)
(4,920) 1,684,153
-
(2,482)
(975,385)
-
2,192
-
570,715
(10,000) 4,111,113
72,039
-
30,150
-
2,650
(66,170)
(18,533)
20,136
87,626
321
159,986
-
-
-
665
-
30,815
-
-
-
-
(68,661)
-
19,630
-
2,650
(321)
(135,152)
-
(18,533)
-
39,766
(*1) For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent
gains that decrease balance. The statements of comprehensive income includes gain of 37,340 million won
included in net gain (loss) on financial assets at FVTPL and net gain (loss) on financial assets at FVTOCI
pertaining to the assets and liabilities held by the Group at the end of the period.
(*2) The Group recognizes transfers between levels at the end of reporting period within which events have occurred or
conditions have changed.
Beginning
balance
Business
Combination
Net Income
(loss) (*1)
Other
comprehensive
income
Purchases/
issuances
Disposals/
settlements
Transfer to
or out of
Level 3 (*2)
Ending
balance
For the year ended December 31, 2019
8,389
401,860
422,614
854,299
180,450
48,798
1,916,410
-
-
707
-
-
-
707
476
59,537
(13,270)
18,450
6,854
16,935
88,982
-
-
-
-
-
-
-
2,000
95,511
173,064
578,228
60,696
1,115
910,614
(5,039)
(28,287)
(67,916)
(183,684)
(95,371)
(40,343)
(420,640)
-
-
-
5,826
528,621
515,199
8,441
-
(1,457)
6,984
1,275,734
152,629
25,048
2,503,057
468,847
2,385,257
1,408
2,115
-
88,982
23,063
23,063
687
911,301
(306)
(420,946)
(1)
6,983
493,698
2,996,755
16,691
-
84,033
-
(11,140)
(14,817)
(2,728)
72,039
164,767
-
33,237
-
181,458
-
-
-
117,270
-
-
-
1,809
(112,187)
-
87,626
321
(9,010)
-
(127,004)
-
(2,728)
321
159,986
Financial assets:
Financial assets at
FVTPL
Debt securities
Equity securities
Capital contributions
Beneficiary
certificates
Loans
Derivative assets
Sub-total
Financial assets at
FVTOCI
Equity securities
Total
Financial liabilities:
Financial liabilities at
FVTPL
Derivative liabilities
Financial liabilities at
FVTPL designated
as upon initial
recognition
Equity-linked
securities
Derivatives
liabilities
(designated for
hedging)
Total
(*1) For financial liabilities, positive numbers represent losses that increase balance and negative numbers represent
gains that decrease balance. The statements of comprehensive income includes gain of 21,809 million won
included in net gain (loss) on financial assets at FVTPL and net gain (loss) on financial assets at FVTOCI
pertaining to the assets and liabilities held by the Group at the end of the period.
(*2) The Group recognizes transfers between levels at the end of reporting period within which events have occurred or
conditions have changed.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)
Loans (*2)
Debt securities
Equity securities (*3) (*4)
Beneficiary certificates (*4)
Financial assets at FVTOCI
Equity securities (*3) (*4)
Total
Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)
Financial liabilities at FVTPL
designated as upon initial recognition
Equity-linked securities (*1)
Total
December 31, 2019
Net income (loss)
Other comprehensive
income (loss)
Favorable
Unfavorable
Favorable
Unfavorable
640
152
652
16,104
1,125
-
18,673
(935)
(128)
(640)
(10,929)
(1,125)
-
(13,757)
1,054
(816)
136
1,190
(142)
(958)
-
-
-
-
-
-
-
-
-
-
26,380
26,380
(11,981)
(11,981)
-
-
-
-
-
-
(*1) Fair value changes of equity related derivatives assets and liabilities and equity-linked securities are calculated by
increasing or decreasing historical volatility of the stock price and correlation, which are major unobservable
variables, by 10%, respectively. In the case of interest rate related derivative assets and liabilities, fair value
changes are calculated by increasing or decreasing the volatility of interest rate, which are major unobservable
variables, by 10%.
(*2) Fair value changes of equity securities are calculated by increasing or decreasing stock prices (-10%~10%) and
volatility (-10~10%). The stock prices and volatility are major unobservable variables.
(*3) Fair value changes of equity securities are calculated by increasing or decreasing terminal growth rate (0~1%) and
discount rate or liquidation value (-1~1%). The growth rate, discount rate, and liquidation value are major
unobservable variables.
(*4) Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice,
fair value changes of beneficiary certificates and other securities whose major unobservable variables are
composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which is
underlying assets and discount rate by 1%.
(4) Sensitivity analysis results on reasonable fluctuation of the significant unobservable input variables for
the fair value of Level 3 financial instruments are as follows.
The sensitivity analysis of the financial instruments has been performed by classifying with favorable and
unfavorable changes based on how changes in unobservable assumptions would have effects on the
fluctuations of financial instruments’ value. When the fair value of a financial instrument is affected by more
than one unobservable assumption, the below table reflects the most favorable or the most unfavorable
changes which resulted from varying the assumptions individually. The sensitivity analysis was performed
for two types of
level 3 financial instruments: (1) interest rate related derivatives, currency related derivatives, equity related
derivatives, equity-linked securities beneficiary certificates and loans of which fair value changes are
recognized as net income; (2) equity securities of which fair value changes are recognized as other
comprehensive income.
Meanwhile, among the financial instruments that are classified as Level 3 amounting to 4,150,878 million
won and 3,156,741 million won as of December 31, 2020 and 2019 respectively, equity instruments of
3,052,432 million won and 2,194,320 million won whose carrying amount are considered to represent the
reasonable approximation of fair value are excluded from the sensitivity analysis.
The sensitivity on fluctuation of input variables by financial instruments as of December 31, 2020 and 2019
is as follows (Unit: Korean Won in millions):
Financial assets:
Financial assets at FVTPL
Derivative assets (*1)
Loans (*2)
Debt securities
Equity securities (*2) (*3) (*4)
Beneficiary certificates (*4)
Others (*2)
Financial assets at FVTOCI
Equity securities (*3) (*4)
Total
Financial liabilities:
Financial liabilities at FVTPL
Derivative liabilities (*1)
Financial liabilities at FVTPL
designated as upon initial recognition
Equity-linked securities (*1)
Total
December 31, 2020
Net income (loss)
Other comprehensive
income (loss)
Favorable
Unfavorable
Favorable
Unfavorable
110
933
13
8,539
1,403
640
-
-
11,638
(257)
(932)
(10)
(7,337)
(1,537)
(547)
-
-
(10,620)
776
(405)
57
833
(45)
(450)
-
-
-
-
-
-
-
21,587
21,587
-
-
-
-
-
-
-
-
-
-
(16,740)
(16,740)
-
-
-
(*1) Fair value changes of equity related derivatives assets and liabilities and equity-linked securities are calculated by
increasing or decreasing historical volatility of the stock price and correlation, which are major unobservable
variables, by 10%, respectively. In the case of interest rate related derivative assets and liabilities, fair value
changes are calculated by increasing or decreasing the volatility of interest rate, which are major unobservable
variables, by 10%.
(*2) Fair value changes of equity securities are calculated by increasing or decreasing stock prices (-10%~10%) and
volatility (-10~10%). The stock prices and volatility are major unobservable variables.
(*3) Fair value changes of equity securities are calculated by increasing or decreasing terminal growth rate (-
0.5%~0.5%) and discount rate (-1~1%) or liquidation value (-1~1%). The growth rate, discount rate, and
liquidation value are major unobservable variables.
(*4) Even if the sensitivity analysis of the capital contributions and beneficiary certificates is not possible in practice,
fair value changes of beneficiary certificates and other securities whose major unobservable variables are
composed of the real estate are calculated by increasing or decreasing price fluctuation rate of real estate which is
underlying assets and discount rate by 1%.
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(5) Fair value and carrying amount of financial assets and liabilities that are recorded at amortized cost are
(6) Financial instruments by category
as follows (Unit: Korean Won in millions):
Financial assets:
Securities at amortized cost
Loans and other financial assets at
amortized cost
Financial liabilities:
Deposits due to customers
Borrowings
Debentures
Other financial liabilities
Financial assets:
Securities at amortized cost
Loans and other financial assets at
amortized cost
Financial liabilities:
Deposits due to customers
Borrowings
Debentures
Other financial liabilities
December 31, 2020
Fair value
Level 1
Level 2
Level 3
Total
Book
value
2,968,875
14,299,748
-
17,268,623
17,020,839
-
- 318,144,845 318,144,845
320,106,078
- 291,767,282
20,586,930
-
37,931,989
-
13,305,067
-
- 291,767,282
20,763,675
37,931,989
13,591,556
176,745
-
286,489
291,477,279
20,745,466
37,479,358
13,808,386
December 31, 2019
Fair value
Level 1
Level 2
Level 3
Total
Book
value
3,123,898
17,378,920
-
20,502,818
20,320,539
25,902
54,507 283,058,699 283,139,108
293,717,693
- 264,909,974
18,919,018
-
31,173,189
-
17,274,514
-
- 264,909,974
18,919,018
-
31,173,189
-
17,274,514
-
264,685,578
18,998,920
30,858,055
17,287,722
The fair values of financial instruments are measured using quoted market price in active markets. In
case there is no active market for financial instruments, the Group determines the fair value by using
valuation methods. Valuation methods and input variables for financial assets and liabilities that are
measured at amortized cost are given as follows:
Securities at amortized cost
The fair value is measured by discounting the projected
Valuation methods
cash flows of debt securities by applying risk-free market
rate with credit spread.
Input variables
Risk-free market rate
and credit spread
Loans and other financial
assets at amortized cost
The fair value is measured by discounting the projected
cash flows of loan products by applying the market
discount rate that has been applied to a proxy company
that has similar credit rating to the debtor.
Risk-free market rate,
credit spread and
prepayment rate
Deposits due to customers,
borrowings, debentures and
other financial liabilities
The fair value is measured by discounting the projected
cash flows of debt products by applying the market
discount rate that is reflecting credit rating of the Group.
Risk-free market rate,
credit spread and
forward rate
Carrying amounts of financial assets and liabilities by each category are as follows (Unit: Korean Won in
millions):
Financial assets
Deposits
Securities
Loans
Derivative assets
Other financial assets
Total
Financial liabilities
Deposits due to
customers
Borrowings
Debentures
Derivative liabilities
Other financial
liabilities
Total
December 31, 2020
Financial asset
at FVTPL
Financial assets
at FVTOCI
48,796
7,136,112
676,291
6,901,742
-
14,762,941
-
30,028,929
-
-
-
30,028,929
Financial assets
at amortized cost
9,863,160
17,020,839
302,794,182
-
7,448,736
337,126,917
Derivatives
assets
(Designated for
hedging)
-
-
-
174,820
-
174,820
Total
9,911,956
54,185,880
303,470,473
7,076,562
7,448,736
382,093,607
December 31, 2020
Financial
liabilities at
FVTPL
Financial
liabilities
designated at
FVTPL
Financial
liabilities at
amortized cost
Derivatives
liabilities
(Designated for
hedging)
49,279
285,026
-
6,459,887
-
6,794,192
-
19,630
-
-
-
19,630
291,477,279
20,745,466
37,479,358
-
13,808,386
363,510,489
-
-
-
64,769
-
64,769
Total
291,526,558
21,050,122
37,479,358
6,524,656
13,808,386
370,389,080
280
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
December 31, 2019
(7)
Income or expense from financial instruments by category
Financial assets
Deposits
Securities
Loans
Derivative assets
Other financial assets
Total
Financial liabilities
Deposits due to
customers
Borrowings
Debentures
Derivative liabilities
Other financial
liabilities
Total
Financial asset
at FVTPL
Financial assets
at FVTOCI
27,901
4,906,867
212,473
2,921,903
-
8,069,144
-
27,730,531
-
-
-
27,730,531
Financial assets
at amortized cost
14,492,223
20,320,539
271,032,244
-
8,193,226
314,038,232
Derivatives
assets
(Designated for
hedging)
-
-
-
121,131
-
121,131
Total
14,520,124
52,957,937
271,244,717
3,043,034
8,193,226
349,959,038
December 31, 2019
Financial
liabilities at
FVTPL
Financial
liabilities
designated at
FVTPL
Financial
liabilities at
amortized cost
Derivatives
liabilities
(Designated for
hedging)
27,530
-
-
2,843,146
-
2,870,676
-
87,626
-
-
-
87,626
264,685,578
18,998,920
30,858,055
-
17,287,722
331,830,275
-
-
-
6,837
-
6,837
Total
264,713,108
19,086,546
30,858,055
2,849,983
17,287,722
334,795,414
Income or expense from financial assets and liabilities by each category during the years ended December
31, 2020 and 2019 are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2020
Fees and
Commissions
Income
(expense)
Provision
(reversal) of
credit loss
-
-
Gain or loss
on
transactions
and valuation
421,709
Interest Income
(expense)
48,612
Others
120,158
Total
590,479
437,527
311
(1,529)
24,138
18,385
478,832
382,988
-
934
-
-
383,922
8,654,726
376,872
(792,250)
44,443
-
8,283,791
(3,516,023)
-
-
-
- (3,516,023)
Financial assets at FVTPL
Financial assets at
FVTOCI
Securities at amortized
cost
Loans and other financial
assets at amortized cost
Financial liabilities at
amortized cost
Net derivatives
(designated for hedging)
Total
-
6,007,830
-
377,183
-
(792,845)
(74,213)
416,077
-
138,543
(74,213)
6,146,788
For the year ended December 31, 2019
Interest Income
(expense)
Fees and
Commissions
Income
(expense)
Provision
(reversal) of
credit loss
50,277
89,817
-
Gain or loss
on
transactions
and valuation
25,455
Others
86,979
Total
252,528
474,751
436,340
-
-
(3,297)
11,015
20,980
503,449
1,415
-
-
437,755
9,615,060
296,435
(385,758)
102,115
-
9,627,852
(4,682,722)
-
-
-
- (4,682,722)
Financial assets at FVTPL
Financial assets at
FVTOCI
Securities at amortized
cost
Loans and other financial
assets at amortized cost
Financial liabilities at
amortized cost
Net derivatives
(designated for hedging)
Total
-
5,893,706 -
-
386,252 -
-
(387,640) -
36,982
175,567 -
-
107,959
36,982
6,175,844
12. DERECOGNITION AND OFFSET OF FINANCIAL INSTRUMENTS
(1) Derecognition of financial instruments
Transferred financial assets that do not meet the condition of derecognition in their entirety.
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1) Bonds sold under repurchase agreements
The financial instruments that were disposed but the Group agreed to repurchase at the fixed amounts at
the same time, so that they did not meet the conditions of derecognition, are as follows (Unit: Korean
Won in millions):
Assets transferred Financial assets at FVTPL
Financial assets at FVTOCI
Securities at amortized cost
Loans and other financial assets at
amortized cost
Related liabilities
Total
Bonds sold under repurchase agreements
2) Securities loaned
December 31,
2020
December 31,
2019
410,331
138,315
40,987
50,088
639,721
657,823
407,985
56,975
42,841
82,594
590,395
569,002
When the Group loans its securities to outside parties, the legal ownerships of the securities are
transferred; however, they should be returned at the end of lending period. Therefore, the Group does
not derecognize them from the consolidated financial statements as it owns majority of risks and
benefits from the securities continuously, regardless of the transfer of legal ownership. The carrying
amounts of the securities loaned are as follows (Unit: Korean Won in millions):
Financial assets
at FVTOCI
Korean treasury and
government bonds
December 31, 2020
December 31, 2019
Loaned to
100,345
80,737
Korea Securities
Finance
Corporation
3) Liquidity of financial assets
As of December 31, 2020 and 2019, the consolidated structured companies issued asset-backed
securities with loans and corporate bonds held by the Group as liquid assets, and the Group bear related
risks through the purchase agreements or credit contributions. The transaction details of the transfer of
the financial instrument are as follows:
December 31, 2020
December 31, 2019
Book value (*)
Fair value
Book value
Fair value
Assets transferred
Related liabilities
4,630,470
3,803,911
4,629,545
3,804,821
4,504,496
3,523,010
4,485,942
3,532,784
(*) The carrying amount is the amount before the allowance for bad debts.
On the other hand, the details of transferred financial assets that have not been removed, such as bonds
sold under the repurchase agreement and loan securities, are also described in Note 18. The Group does
not have financial instruments that are continuously involved.
(2) The offset of financial assets and liabilities
The Group possesses both the uncollected domestic exchange receivables and the unpaid domestic exchange
payable, which satisfy offsetting criteria of Korean IFRS 1032. Therefore, the total number of uncollected
domestic exchange receivables or unpaid domestic exchange payable has been offset with part of unpaid
domestic exchange payables or uncollected domestic exchange receivables and has been disclosed in loans at
amortized cost and other financial assets and other financial liabilities of the Group’s statements of financial
position respectively.
The Group possesses the derivative assets, derivative liabilities, receivable spot exchange and payable spot
exchange that do not satisfy the offsetting criteria of Korean IFRS 1032, but provide the Group under the
circumstances of the trading party’s defaults, insolvency or bankruptcy, with the right of offsetting. Items
such as cash collateral cannot satisfy the offsetting criteria of Korean IFRS 1032, but in accordance with the
collateral arrangements and under the circumstances of the trading party’s default, insolvency or bankruptcy,
the net amount of derivative assets and derivative liabilities, receivable spot exchange and payable spot
exchange can be offset.
The Group has entered into a resale and repurchase agreement and accounted it as a collateralized borrowing.
The Group has also entered into a resale and purchase agreement and accounted it as a secured loans. The
Group under the repurchase agreements has an offsetting right only upon the counterparty’s default,
insolvency or bankruptcy; thus, the repurchase agreements are applied by the TBMA/ISMA Global Master
Repurchase Agreement, which does not satisfy the offsetting criteria of Korean IFRS 1032. The Group
disclosed bonds sold under repurchase agreements as borrowings and bonds purchased under resale
agreements as loan at amortized cost and other financial assets.
As of December 31, 2020 and 2019, the financial instruments to be offset and may be covered by master
netting agreements and similar agreements are as follows (Unit: Korean Won in millions):
December 31, 2020
Gross
amounts of
recognized
financial
assets
Gross
amounts of
recognized
financial
assets
setoff
Net
amounts
of financial
assets
presented
Related amounts not setoff
in the consolidated
statement of financial
position
Netting
agreements
and others
Cash
collateral
received
and others
Net
amounts
6,456,799
3,153,919
- 6,456,799
- 3,153,919
7,733,997
598,545 1,278,176
10,145,749
- 10,145,749 10,145,749
-
-
34,352,965 32,834,189 1,518,776
-
54,109,432 32,834,189 21,275,243 17,879,746
- 1,518,776
598,545 2,796,952
5,823,620
- 5,823,620
19,630
3,153,400
-
19,630
- 3,153,400
7,147,683
477,603
1,371,364
657,823
-
657,823
213,623
444,200
-
33,014,440 32,834,189
180,251
42,668,913 32,834,189 9,834,724
176,179
7,537,485
-
4,072
921,803 1,375,436
Financial assets:
Derivative assets (*1)
Receivable spot exchange (*2)
Bonds purchased under resale
agreements (*2)
Domestic exchange settlement debits
(*2) (*6)
Total
Financial liabilities:
Derivative liabilities (*1)
Equity-linked securities in short
position (*3)
Payable spot exchange (*4)
Bonds sold under repurchase
agreements (*5)
Domestic exchange settlement
credits (*4) (*6)
Total
(*1) The items include derivative assets and liabilities held for trading and designated for hedging.
(*2) The items are included in loan at amortized cost and other financial assets.
(*3) The items are equity linked securities related to derivatives and are included in financial liabilities at FVTPL.
(*4) The items are included in other financial liabilities.
(*5) The items are included in borrowings.
(*6) Certain financial assets and liabilities are presented as net amounts.
284
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285
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
December 31, 2019
Gross
amounts of
recognized
financial
assets
Gross
amounts of
recognized
financial
assets
setoff
Net
amounts
of financial
assets
presented
Related amounts not setoff
in the consolidated
statement of financial
position
Netting
agreements
and others
Cash
collateral
received
Net
amounts
3,032,894
5,112,206
- 3,032,894
- 5,112,206
7,058,885
111,122
975,093
8,981,752
- 8,981,752
8,981,752
-
-
-
31,642,486 31,269,258
48,769,338 31,269,258 17,500,080 16,040,637
373,228
-
373,228
111,122 1,348,321
2,824,449
- 2,824,449
87,626
5,111,386
-
87,626
- 5,111,386
7,071,549
172,488
779,424
569,002
-
569,002
180,402
388,600
-
32,531,186 31,269,258 1,261,928
41,123,649 31,269,258 9,854,391
1,257,280
8,509,231
-
561,088
4,648
784,072
Financial assets:
Derivative assets (*1)
Receivable spot exchange (*2)
Bonds purchased under resale
agreements (*2)
Domestic exchange settlement debits
(*2) (*6)
Total
Financial liabilities:
Derivative liabilities (*1)
Equity-linked securities in short
position (*3)
Payable spot exchange (*4)
Bonds sold under repurchase
agreements (*5)
Domestic exchange settlement
credits (*4) (*6)
Total
(*1) The items include derivatives held for trading, derivatives designated for hedging.
(*2) The items are included in loan at amortized cost and other financial assets.
(*3) The items are equity linked securities related to derivatives and are included in financial liabilities at FVTPL.
(*4) The items are included in other financial liabilities.
(*5) The items are included in borrowings.
(*6) Certain financial assets and liabilities are presented as net amounts.
13. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
(1)
Investments in associates accounted for using the equity method of accounting are as follows:
Joint ventures and associates
Main business
December 31,
2020
December 31,
2019
Location
Financial
statements as of
Percentage of ownership
(%)
Woori Bank:
W Service Networks Co., Ltd. (*1)
Freight & staffing
services
Korea Credit Bureau Co., Ltd.
(*2)
Credit information
Korea Finance Security Co., Ltd.
(*1)
Saman Corporation (*6)
Wongwang Co., Ltd. (*4)
Sejin Construction Co., Ltd. (*4)
ARES-TECH Co., Ltd. (*4)
Reading Doctors Co., Ltd. (*4)
Cultizm Korea LTD Co., Ltd. (*4)
NK Eng Co., Ltd. (*4)
Beomgyo.,Ltd. (*4)
Woori Growth Partnerships New
Technology Private Equity
Fund
2016KIF-IMM Woori Bank
Technology Venture Fund
K BANK Co., Ltd. (*2) (*7)
Smart Private Equity Fund No.2
Woori Bank-Company K Korea
Movie Asset Fund
Well to Sea No. 3 Private Equity
Fund (*6)
Partner One Value Up I Private
Equity Fund
IBK KIP Seongjang Dideemdol
1st Private Investment Limited
Partnership
Crevisse Raim Impact 1st Startup
Venture Specialist Private
Equity Fund
LOTTE CARD Co., Ltd.
Security service
General
construction
Technology service
Wholesale and real
estate
Construction
Electronic
component
manufacturing
Other services
Wholesale and retail
sales
Manufacturing
Telecommunication
equipment retail
sales
Other financial
services
Other financial
services
Finance
Other financial
services
Other financial
services
Finance
Other financial
services
Other financial
services
Other financial
services
Credit card and
installment
financing
Together-Korea Government
Private Pool Private Securities
Investment Trust No.3
Other financial
services
Genesis Environmental Energy
Company 1st Private Equity
Fund
Union Technology Finance
Investment Association
Trust and collective
investment
Trust and collective
investment
4.9
9.9
4.9 Korea
2020.11.30(*5)
9.9 Korea
2020.12.31
15.0
15.0 Korea
2020.11.30(*5)
-
9.2 Korea
29.0
29.6
23.4
35.4
31.3
23.1
29.0 Korea
29.6 Korea
23.4 Korea
35.4 Korea
31.3 Korea
23.1 Korea
23.1
23.1 Korea
-
-
-
-
-
-
-
-
23.1
20.0
26.2
20.0
25.0
50.0
23.3
23.1 Korea
2020.12.31
20.0 Korea
14.5 Korea
2020.12.31
2020.11.30(*5)
20.0 Korea
2020.12.31
25.0 Korea
2020.12.31
50.0 Korea
2020.9.30(*5)
23.3 Korea
2020.12.31
20.0
20.0 Korea
2020.12.31
25.0
25.0 Korea
2020.12.31
20.0
20.0 Korea
2020.9.30(*5)
100.0
- Korea
2020.12.31
24.8
29.7
- Korea
2020.12.31
- Korea
2020.12.31
286
- 103 -
- 104 -
287
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Joint ventures and associates
Main business
December 31,
2020
December 31,
2019
Location
Financial
statements as of
Joint ventures and associates
Percentage of ownership
(%)
Woori Bank: (*8)
Japanese Hotel Real Estate Private
Equity Fund 2
Woori G Clean Energy No.1
Woori Goseong Power EBL
Private Special Asset Fund
Woori Seoul Beltway Private
Special Asset Fund
Woori Financial Capital Co., Ltd. :
AJU TAERIM 1st Fund
Portone-Cape Fund No.1
KIWOOM PE AJU Investment
Fund (*9)
Woori Investment Bank Co., Ltd. :
(*8)
Woori FirstValue Private Real
Other financial
services
Investment trust and
discretionary
investment business
Trust and collective
investment
Trust and collective
investment
Other financial
services
Other financial
services
Other financial
services
19.9
19.9 Korea
2020.12.31
29.3
16.7
25.0
25.6
20.0
9.1
- Korea
2020.12.31
- Korea
2020.12.31
- Korea
2020.12.31
- Korea
2020.12.31
- Korea
2020.12.31
- Korea
2020.12.31
Estate Fund No.2
Real estate business
12.0
- Korea
2020.12.31
Woori Asset Management Co. Ltd.:
Woori High plus G.B. Securities
Feeder Fund1(G.B.)
Woori Star50 Master Fund
ClassC-F
Collective
investment business
Collective
investment business
Woori Private Equity Asset
Management Co., Ltd.:
Uri Hanhwa Eureka Private Equity
Fund (*2)
Other financial
services
21.8
24.5
- Korea
2020.12.31
- Korea
2020.12.31
0.8
0.8 Korea
2020.12.31
Japanese Hotel Real Estate Private
Equity Fund 1:
Godo Kaisha Oceanos 1
Woori bank and Woori Financial
Capital Co., Ltd.: (*8)
JC Assurance No.2 Private Equity
Fund
Dream Company Growth no.1
PEF
HMS-Oriens 1st Fund
Woori G Senior Loan No.1
Woori bank and Woori card Co.,
Ltd.:
Dongwoo C & C Co., Ltd. (*4)
SJCO Co., Ltd. (*4)
G2 Collection Co., Ltd. (*4)
Other financial
services
47.8
47.8
Japan
2020.10.31(*5)
Collective
investment business
Collective
investment business
Trust and collective
investment
Investment trust and
discretionary
investment business
Construction
Aggregate
transportation and
wholesale
Wholesale and retail
sales
29.3
27.8
22.8
- Korea
2020.12.31
- Korea
2020.12.31
- Korea
2020.12.31
21.7
- Korea
2020.12.31
24.5
24.5 Korea
28.7
29.2
48.4
28.7 Korea
29.2 Korea
48.4 Korea
-
-
-
-
The Base Enterprise Co., Ltd. (*4) Manufacturing
288
- 105 -
Kyesan Engineering Co., Ltd. (*4)
Good Software Lap Co., Ltd. (*4)
QTS Shipping Co., Ltd. (*4)
DAEA SNC Co., Ltd. (*4)
Main business
Construction
Service
Complex
transportation
brokerage
Wholesale and retail
sales
Force TEC Co., Ltd. (*4)
Sinseong Trading Co., Ltd. (*4)
PREXCO Co., Ltd. (*4)
Jiwon Plating Co., Ltd. (*4)
Youngdong Sea Food Co., Ltd.
(*4)
Manufacturing
Manufacturing
Manufacturing
Plating
Processed sea food
manufacturing
Percentage of ownership
(%)
December 31,
2020
December 31,
2019
Location
23.3
29.4
49.8
25.5
25.8
27.9
28.1
20.8
24.5
23.3 Korea
29.4 Korea
49.8 Korea
25.5 Korea
25.8 Korea
27.9 Korea
28.1 Korea
20.8 Korea
24.5 Korea
Financial
statements as of
-
-
-
-
-
-
-
-
-
Woori bank and Woori Asset
Management Co., Ltd.:
Woori High Plus Short-term High
Graded ESG Bond Sec Feeder
Inv Trust 1
Woori Bank, Woori Financial
Capital Co., Ltd., Woori
Investment Bank Co., Ltd. and
Woori Private Equity Asset
Management Co., Ltd.: (*8)
Collective
investment business
23.3 -
- Korea
2020.12.31
Woori-Shinyoung Growth-Cap
Private Equity Fund I
Other financial
services
35.0
31.9 Korea
2020.12.31
Woori Bank and Woori Investment
Bank Co., Ltd.: (*8)
Chin Hung International Inc. (*3)
PCC-Woori LP Secondary Fund
Woori Bank and Woori Private
Equity Asset Management Co.,
Ltd.: (*8)
Woori-Q Corporate Restructuring
Private Equity Fund
Construction
Other financial
services
-
25.3 Korea
-
38.8
38.8 Korea
2020.12.31
Trust and collective
investment
38.4
38.4 Korea
2020.12.31
(*1) Most of the significant business transactions of associates are with the Group as of December 31, 2020 and
2019.
(*2) The Group can participate in decision-making body and exercise significant influence over financial policies
and operational policies decision making of the associates.
(*3) As of December 31, 2020, it is classified as assets held for sale. Quoted market prices per share of Chin Hung
International Inc. are 2,595 Won and 2,310 Won as of December 31, 2020 and 2019, respectively.
(*4) There is no investment balance as of December 31, 2020 and 2019.
(*5) The equity method was applied using the most recent financial statements available from the settlement date
because no financial statements were available at the end of December and the significant transactions or
events that occurred between the end of the reporting period of the associate and the end of the reporting
period of the subsidiary were duly reflected.
(*6) Due to a significant loss of influence as of December 31, 2020, the entity was classified as a fair value
through other comprehensive income measurement financial asset.
(*7) The equity ratio increased due to paid-in capital increase as of December 31, 2020.
(*8) Two or more subsidiaries may invest or operate to exert significant influence on the decision-making process
for activities related to the investee.
(*9) The Group can participate as a co-operator to exert significant influence.
(*10) Woori G IPO10 [FI_Bal][F]C(F), Woori G Egis Bond[FI][F](C(F)) can exert significant influence but was
classified as an item measured at fair value through profit or loss.
- 106 -
289
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(2) Changes in the carrying value of investments in associates accounted for using the equity method of
accounting are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2020
Acquisition
cost
January 1,
2020
Share of
profits
(losses) Acquisition
Disposal/
Reclassification Dividends
Business
combination
108
186
7
3,313
6,845
1,370
3,267
3,287
(221)
-
-
51,176
849
(742)
(432)
-
-
-
-
-
-
-
-
(50,411)
(466)
(3)
(90)
-
-
-
16,938
19,212
(2,240)
-
(1,728)
(212)
11,893
236,232
15,141
1,240
31,254 (18,334)
-
163,082
(492)
-
(1,088)
-
2,915
2,764
(1,283)
Korea Movie Asset Fund
2,100
3,323
365
- 209,023
87,180
10,000
9,908
(75)
-
-
-
-
-
(900)
-
-
(117,170) (178,355)
-
-
Change
in capital
December
31, 2020
1
-
-
(23)
49
191
8,125
3,066
-
-
-
15,032
(1,563)
13,238
(1,905) 174,097
-
-
1,481
2,788
(678)
-
(17)
9,816
Woori High plus G.B.
Securities Feeder
Fund1(G.B.)
Woori G Senior Loan
No.1
Woori G Clean Energy
No.1
Woori Goseong Power
EBL Private Special
Asset Fund
Woori Seoul Beltway
Private Special Asset
Fund
AJU TAERIM 1st Fund
Portone-Cape Fund No.1
KIWOOM PE AJU
Investment Fund
Woori FirstValue Private
Real Estate Fund No.2
Woori Star50 Master Fund
ClassC-F
JC Assurance No.2 Private
Equity Fund
Dream Company Growth
no.1 PEF
HMS-Oriens 1st Fund
Woori High Plus Short-
term High Graded ESG
Bond Sec Feeder Inv
Trust 1
Acquisition
cost
January 1,
2020
Share of
profits
(losses) Acquisition
Disposal/
Reclassification Dividends
Business
combination
For the year ended December 31, 2020
6,000
51,959
1,015
-
-
-
49
6,141
343
51,959
9
1,015
-
-
-
-
(257)
-
14,915
-
611
14,915
-
(408)
5,590
1,100
1,000
1,000
9,000
200
29,050
7,705
12,000
-
-
-
-
-
-
-
-
-
97
(6)
-
(6)
5,591
-
-
1,000
1,184
-
(16)
200
-
-
-
29,050
7,705
12,000
-
-
-
-
-
-
-
-
-
(75)
-
-
-
-
-
-
-
-
-
-
-
-
-
289
960
-
-
-
-
-
-
Change
in capital
December
31, 2020
(114)
6,076
-
52,045
-
1,024
-
15,118
-
-
-
-
5,613
283
960
994
946
2,130
-
184
-
29,050
-
-
7,705
12,000
91,092
2,382
973,371 806,360 101,077
-
91,092
552,368
-
-
(274,498) (187,306)
-
1,249
-
93,474
(5,959) 993,291
-
-
-
-
-
-
-
-
-
-
-
-
W Service Networks Co.,
Ltd.
Korea Credit Bureau Co.,
Ltd.
Korea Finance Security
Co., Ltd.
Chin Hung International
Inc.
Saman Corporation
Woori Growth
Partnerships New
Technology Private
Equity Fund
2016KIF-IMM Woori
Bank Technology
Venture Fund
K BANK Co., Ltd.
Smart Private Equity Fund
No.2
Woori Bank-Company K
Well to Sea No.3 Private
Equity Fund
Partner One Value Up I
Private Equity Fund
IBK KIP Seongjang
Dideemdol 1st Private
Investment Limited
Partnership
Crevisse Raim Impact 1st
Startup Venture
Specialist Private Equity
Fund
Woori-Shinyoung Growth-
Cap Private Equity Fund
I
LOTTE CARD Co.,Ltd
Woori-Q Corporate
Restructuring Private
Equity Fund
PCC-Woori LP Secondary
Fund
Force TEC Co., Ltd.
Together-Korea
Government Private Pool
Private Securities
Investment Trust No.3
Genesis Environmental
Energy Company 1st
Private Equity Fund
Union Technology
Finance Investment
Association
Uri Hanhwa Eureka
Private Equity Fund
Godo Kaisha Oceanos 1
Japanese Hotel Real Estate
Private Equity Fund 2
9,756
4,576
-
5,720
(540)
-
-
-
9,756
4,130
4,375
-
75
(321)
-
-
-
4,129
32,480
11,841
346,810 409,444
7,366
19,692
31,363
810
(12,124)
-
(104)
(5,710)
-
-
-
38,342
(1,404) 422,832
23,146
6,046
(159)
17,017
7,575
-
2,525
-
554
1,542
5,049
-
-
-
-
10,000
-
23
100,000
(90,000)
3,738
-
241
4,084
(346)
4,500
-
(15)
4,500
350
10,800
342
10,952
61
7
3,291
3,291
283
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(850)
(154)
-
-
-
-
-
-
-
-
-
-
22,904
-
(1,149)
8,128
393
-
10,023
-
3,979
-
4,485
-
84
403
10,193
(186)
3,234
290
- 107 -
- 108 -
291
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
W Service Networks Co., Ltd.
Korea Credit Bureau Co., Ltd.
Korea Finance Security Co.,
Ltd.
Chin Hung International Inc.
Saman Corporation
Woori Growth Partnerships
New Technology Private
Equity Fund
2016KIF-IMM Woori Bank
Technology Venture Fund
K BANK Co., Ltd.
Smart Private Equity Fund
No.2
Woori Bank-Company K
Korea Movie Asset Fund
Well to Sea No.3 Private
Equity Fund
Partner One Value Up I
Private Equity Fund
IBK KIP Seongjang
Dideemdol 1st Private
Investment Limited
Partnership
Crevisse Raim Impact 1st
Startup Venture Specialist
Private Equity Fund
Woori-Shinyoung Growth-
Cap Private Equity Fund I
LOTTE CARD Co.,Ltd
Woori-Q Corporate
Restructuring Private Equity
Fund
PCC-Woori LP Secondary
Fund
Nomura-Rifa Private Real
Estate Investment Trust
No.17
Uri Hanhwa Eureka Private
Equity Fund
Godo Kaisha Oceanos 1
Japanese Hotel Real Estate
Private Equity Fund 2
Acquisition
cost
January 1,
2019
108
3,313
157
6,790
For the year ended December 31, 2019
Share of
profits
(losses)
Acquisition
-
-
31
190
Disposal/
Reclassification Dividends
(2)
-
(135)
-
3,267
130,779
8,521
3,456
44,741
1,014
(169)
6,426
(198)
-
-
-
-
-
-
-
-
-
Change in
capital
December 31,
2019
-
-
-
9
33
186
6,845
3,287
51,176
849
18,666
25,091
1,466
309
(7,490)
(164)
-
19,212
12,385
73,150
15,300
43,709
1,193
(18,233)
-
5,807
2,915
2,890
(41)
3,000
2,700
623
101,483
197,393
30,343
10,000
9,948
(40)
-
-
-
-
4,576
4,426
-
150
4,375
3,025
-
1,350
12,665
346,000
6,129
2,525
-
-
-
-
(824)
63,444
12,665
346,000
(83)
6,129
-
2,525
(2,615)
-
(85)
-
-
-
-
-
-
-
-
-
1,000
787
(136)
-
(651)
-
-
-
-
1,263
(29)
-
-
15,141
31,254
2,764
3,323
(18,836)
123
209,023
-
-
-
-
-
-
-
-
-
9,908
-
-
-
-
-
-
-
4,576
4,375
11,841
409,444
6,046
2,525
-
350
10,870
339
-
3
2
-
10,870
-
(15)
-
(105)
-
200
342
10,952
3,291
759,368
-
361,766
-
83,997
3,291
389,096
-
(10,856)
-
(19,242)
-
1,599
3,291
806,360
(3) Summary financial information relating to investments in associates accounted for using the equity
method of accounting is as follows (Unit: Korean Won in millions):
W Service Networks Co., Ltd.
Korea Credit Bureau Co., Ltd.
Korea Finance Security Co., Ltd.
Woori Growth Partnerships New Technology Private
Equity Fund
2016KIF-IMM Woori Bank Technology Venture
Fund
K BANK Co., Ltd.
Smart Private Equity Fund No.2
Woori Bank-Company K Korea Movie Asset Fund
Well to Sea No.3 Private Equity Fund
Partner One Value Up I Private Equity Fund
IBK KIP Seongjang Dideemdol 1st Private
Investment Limited Partnership
Crevisse Raim Impact 1st Startup Venture Specialist
Private Equity Fund
Woori-Shinyoung Growth-Cap Private Equity Fund I
LOTTE CARD Co.,Ltd (*)
Woori-Q Corporate Restructuring Private Equity
Fund
PCC-Woori LP Secondary Fund
Force TEC Co., Ltd.
Together-Korea Government Private Pool Private
Securities Investment Trust No.3
Genesis Environmental Energy Company 1st Private
Equity Fund
Union Technology Finance Investment Association
Uri Hanhwa Eureka Private Equity Fund
Godo Kaisha Oceanos 1
Japanese Hotel Real Estate Private Equity Fund 2
Woori High plus G.B. Securities Feeder Fund1(G.B.)
Woori G Senior Loan No.1
Woori G Clean Energy No.1
Woori Goseong Power EBL Private Special Asset
Fund
Woori Seoul Beltway Private Special Asset Fund
AJU TAERIM 1st Fund
Portone-Cape Fund No.1
KIWOOM PE AJU Investment Fund
Woori FirstValue Private Real Estate Fund No.2
Woori Star50 Master Fund ClassC-F
JC Assurance No.2 Private Equity Fund
Dream Company Growth no.1 PEF
HMS-Oriens 1st Fund
Woori High Plus Short-term High Graded ESG Bond
December 31, 2020
Assets
Liabilities
Operating
revenue
Net income
(loss)
6,305
117,077
36,978
2,448
37,599
16,536
18,525
107,810
60,599
1,197
13,391
(1,985)
65,390
252
1,589
(9,601)
64,109
4,040,051
13,667
11,273
22,001
42,205
1,198
3,530,074
51
119
3,102
-
7,425
68,144
1
1,926
610,535
308
6,201
(83,989)
(204)
1,461
16,061
(329)
46,542
655
1,024
(411)
15,747
110,452
14,578,716
-
825
12,238,805
284
23,875
1,255,593
58,355
20,927
47,077
10,025
16,192
15,151
50,382
66,793
16,293
27,870
240,414
3,496
90,728
22,452
1,192
4,800
10,986
20,220
1,011
98,431
28,727
52,685
433
4
45,552
206
2,082
25,914
1
187
118
51
235
45,472
15
-
15
1
21
1
86
-
57
2,467
246
13
43
53
1,400
1
8,150
1,425
1,359
148
1,721
33
3,060
352
-
-
-
9
11
-
-
90
(85)
21,106
78,781
(1,590)
1,425
(415)
23
974
(50)
7,676
14
1,271
148
1,584
32
2,969
323
(22)
-
(71)
(9)
11
(732)
(116)
20
Sec Feeder Inv Trust 1
402,015
-
10,727
10,727
(*) The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the
adjustments that occurred by difference of accounting policies with the Group.
292
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293
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
W Service Networks Co., Ltd.
Korea Credit Bureau Co., Ltd.
Korea Finance Security Co., Ltd.
Chin Hung International Inc.
Saman Corporation
Woori Growth Partnerships New Technology Private
Equity Fund
2016KIF-IMM Woori Bank Technology Venture Fund
K BANK Co., Ltd.
Smart Private Equity Fund No.2
Woori Bank-Company K Korea Movie Asset Fund
Well to Sea No.3 Private Equity Fund
Partner One Value Up I Private Equity Fund
IBK KIP Seongjang Dideemdol 1st Private Investment
December 31, 2019
Assets
Liabilities
Operating
revenue
Net income
(loss)
5,742
96,855
32,574
335,147
92,206
83,583
72,768
2,679,968
13,872
13,294
7,073,363
42,602
1,969
30,289
10,660
229,764
66,184
330
343
2,464,168
51
2
6,470,540
-
17,572
91,200
61,939
499,152
91,088
7,866
8,939
84,928
2
4,532
524,319
457
1,322
1,480
(1,265)
26,617
(485)
6,355
7,462
(89,779)
(204)
2,492
48,357
(175)
Limited Partnership
21,208
691
766
(676)
Crevisse Raim Impact 1st Startup Venture Specialist
Private Equity Fund
Woori-Shinyoung Growth-Cap Private Equity Fund I
LOTTE CARD Co.,Ltd (*)
Woori-Q Corporate Restructuring Private Equity Fund
PCC-Woori LP Secondary Fund
Uri Hanhwa Eureka Private Equity Fund
Godo Kaisha Oceanos 1
Japanese Hotel Real Estate Private Equity Fund 2
16,939
37,642
12,936,977
15,975
6,498
41,950
70,869
16,561
124
620
10,659,889
823
-
236
47,960
6
10
2
1,366,512
-
-
41
778
-
(494)
(2,679)
42,538
(823)
(2)
(436)
119
(600)
(*) The amount is after reflecting the fair value adjustment that occurred when acquiring the shares and the
adjustments that occurred by difference of accounting policies with the Group.
(4) The entities that the Group has not applied equity method of accounting although the Group’s
ownership interest is more than 20% as of December 31, 2020 and 2019 are as follows:
Associate (*)
Orient Shipyard Co., Ltd.
Yuil PESC Co., Ltd.
CL Tech Co., Ltd.
December 31, 2020
Number of shares owned
464,812
8,642
13,759
Ownership (%)
(*) Even though the Group’s ownership interest of the entity is more than 20%, the Group does not have
significant influence over the entity since it is going through work-out process under receivership, thus it is
excluded from the investment in joint ventures and associates.
Associate (*)
Orient Shipyard Co., Ltd.
Saenuel Co., Ltd.
E Mirae Tech Co., Ltd.
Jehin Trading Co., Ltd.
The Season Company Co., Ltd.
Yuil PESC Co., Ltd.
CL Tech Co., Ltd.
December 31, 2019
Ownership (%)
Number of shares owned
464,812
3,531
7,837
83,056
18,283
8,642
13,759
(*) Even though the Group’s ownership interest of the entity is more than 20%, the Group does not have
significant influence over the entity since it is going through work-out process under receivership, thus it is
excluded from the investment in joint ventures and associates.
21.4
24.0
38.6
21.4
37.4
41.8
27.7
30.3
24.0
38.6
294
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(5) As of December 31, 2020 and 2019, the reconciliations from the net assets of the associates to the book
value of the shares of the investment in joint ventures and associates are as follows (Unit: Korean Won
in millions except for ownership):
W Service Networks Co., Ltd.
Korea Credit Bureau Co., Ltd.
Korea Finance Security Co.,
Ltd.
Woori Growth Partnerships
New Technology Private
Equity Fund
2016KIF-IMM Woori Bank
Technology Venture Fund
K BANK Co., Ltd. (*1) (*2)
Smart Private Equity Fund
No.2 (*2)
Woori Bank-Company K
Korea Movie Asset Fund
Well to Sea No.3 Private
Equity Fund (*3)
Partner One Value Up Ist
Private Equity Fund
IBK KIP Seongjang
Dideemdol 1st Private
Investment Limited
Partnership
Crevisse Raim Impact 1st
Startup Venture Specialist
Private Equity Fund
Woori-Shinyoung Growth-Cap
Private Equity Fund I
LOTTE CARD Co., Ltd (*1)
Woori-Q Corporate
Restructuring Private Equity
Fund
PCC-Woori LP Secondary
Fund
Force TEC
Together-Korea Government
Private Pool Private
Securities Investment Trust
No.3
Genesis Environmental Energy
Company 1st Private Equity
Fund
Union Technology Finance
Investment Association
Uri Hanhwa Eureka Private
Equity Fund
Godo Kaisha Oceanos 1
Japanese Hotel Real Estate
Private Equity Fund 2
Woori High plus G.B.
Securities Feeder
Fund1(G.B.)
Woori G Senior Loan No.1
Woori G Clean Energy No.1
Woori Goseong Power EBL
Private Special Asset Fund
Woori Seoul Beltway Private
Special Asset Fund
December 31, 2020
Total net
asset
Ownership
(%)
Ownership
portion of
net assets
3,857
79,478
4.9
9.9
191
7,876
Basis
difference Impairment
-
-
-
246
20,442
15.0
3,066
65,138
23.1
15,034
-
-
-
-
62,911
509,978
20.0
26.2
12,582
133,614
-
44,117
-
(3,634)
13,616
20.0
2,723
11,154
25.0
2,788
18,899
50.0
-
42,205
23.3
9,817
45,888
20.0
9,178
15,747
25.0
3,937
109,627
2,114,159
35.0
20.0
38,342
422,832
57,922
38.4
22,220
20,923
1,526
38.8
25.8
8,126
393
10,024
100.0
10,024
16,074
24.8
3,979
15,100
29.7
4,485
50,147
21,321
0.8
47.8
403
10,193
16,278
19.9
3,234
27,870
240,399
3,495
21.8
21.7
29.3
6,076
52,045
1,024
90,707
16.7
15,118
22,451
25.0
5,613
- 112 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,242)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Intercompany
transaction
-
3
-
Book
value
191
8,125
3,066
(2)
15,032
656
13,238
- 174,097
-
-
-
1,481
2,788
-
(1)
9,816
578
9,756
192
4,129
-
38,342
- 422,832
684
22,904
2
-
8,128
393
(1)
10,023
-
-
-
-
-
-
-
-
3,979
4,485
403
10,193
3,234
6,076
52,045
1,024
-
15,118
-
5,613
295
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
December 31, 2020
AJU TAERIM 1st Fund
Portone-Cape Fund No.1
KIWOOM PE AJU Investment
Total net
asset
Ownership
(%)
1,106
4,800
25.6
20.0
Fund
10,929
9.1
Ownership
portion of
net assets
283
960
994
Woori FirstValue Private Real
Estate Fund No.2
Woori Star50 Master Fund
ClassC-F
JC Assurance No.2 Private
Equity Fund
Dream Company Growth no.1
PEF
HMS-Oriens 1st Fund
Woori High Plus Short-term
High Graded ESG Bond Sec
Feeder Inv Trust 1
17,753
12.0
2,130
765
24.5
184
98,418
29.3
29,050
28,684
52,632
27.8
22.8
7,705
12,000
402,015
23.3
93,474
Basis
difference Impairment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Intercompany
transaction
Book
value
-
-
-
-
-
283
960
994
2,130
184
-
29,050
-
-
7,705
12,000
-
93,474
(*1) The net asset equity amount is after the debt-for-equity swap, non-controlling etc.
(*2) As a result of conducting an impairment test on the investment stocks of the related companies, the recoverable
value was less than the carrying amount and thus the impairment loss was recognized.
(*3) The estimated recoverable amount of 15,687 million won at the time of liquidation was classified as
receivable.
December 31, 2019
Total net
asset
Ownership
(%)
Ownership
portion of
net assets
3,773
66,566
4.9
9.9
186
6,597
Basis
difference Impairment
-
-
-
246
21,914
15.0
3,287
-
-
Intercompany
transaction
-
2
-
Book
value
186
6,845
3,287
105,383
26,022
25.3
9.2
26,646
2,391
24,565
5,373
-
(6,915)
(35)
-
51,176
849
83,253
23.1
19,215
-
-
(3)
19,212
72,425
215,800
20.0
14.5
14,485
31,248
-
3,634
-
(3,634)
656
6
15,141
31,254
13,821
20.0
2,764
13,292
25.0
3,323
418,250
50.0
209,041
42,602
23.3
9,909
20,517
20.0
4,103
16,815
25.0
4,204
37,022
2,047,220
31.9
20.0
11,841
409,444
15,152
38.4
5,813
6,498
38.8
2,524
41,714
22,909
0.8
47.8
342
10,952
16,555
19.9
3,291
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,764
3,323
(18) 209,023
(1)
9,908
473
4,576
171
4,375
-
11,841
- 409,444
233
6,046
1
2,525
-
-
-
342
10,952
3,291
W Service Networks Co., Ltd.
Korea Credit Bureau Co., Ltd.
Korea Finance Security Co.,
Ltd.
Chin Hung International Inc.
(*1)
Saman Corporation (*2)
Woori Growth Partnerships
New Technology Private
Equity Fund
2016KIF-IMM Woori Bank
Technology Venture Fund
K BANK Co., Ltd. (*1) (*2)
Smart Private Equity Fund
No.2
Woori Bank-Company K
Korea Movie Asset Fund
Well to Sea No.3 Private
Equity Fund (*1)
Partner One Value Up Ist
Private Equity Fund
IBK KIP Seongjang Dideemdol
1st Private Investment
Limited Partnership
Crevisse Raim Impact 1st
Startup Venture Specialist
Private Equity Fund
Woori-Shinyoung Growth-Cap
Private Equity Fund I
LOTTE CARD Co., Ltd (*1)
Woori-Q Corporate
Restructuring Private Equity
Fund
PCC-Woori LP Secondary
Fund
Uri Hanhwa Eureka Private
Equity Fund
Godo Kaisha Oceanos 1
Japanese Hotel Real Estate
Private Equity Fund 2
(*1) The net asset equity amount is after the debt-for-equity swap, non-controlling etc.
(*2) As a result of conducting an impairment test on the investment stocks of the related companies, the recoverable
value was less than the carrying amount and thus the impairment loss was recognized.
296
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297
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
14. INVESTMENT PROPERTIES
15. PREMISES AND EQUIPMENT
(1) Details of investment properties are as follows (Unit: Korean Won in millions):
(1) Details of premises and equipment as of December 31, 2020 and 2019 are as follows (Unit: Korean Won
Acquisition cost
Accumulated depreciation
Accumulated impairment losses
Net carrying value
December 31, 2020
December 31, 2019
409,702
(22,152)
(86)
387,464
299,802
(19,563)
-
280,239
(2) Changes in investment properties are as follows (Unit: Korean Won in millions):
Beginning balance
Acquisition
Disposal
Depreciation
Transfer
Foreign currencies translation adjustments
Business combination
Others
Ending balance
For the years ended December 31
2020
2019
280,239
76,588
(353)
(2,689)
30,431
267
10,557
(7,576)
387,464
178,910
70,346
(193)
(2,225)
32,394
402
-
605
280,239
(3) Fair value of investment properties amounted to 750,659 million won and 502,305 million won as of
December 31, 2020 and 2019, respectively. The fair value of investment properties has been assessed
on the basis of recent similar real estate market price and officially assessed land price in the area of the
investment properties, is classified as level 3 on the fair value hierarchy.
(4) Rental fee earned from investment properties is amounting to 15,190 million won and 10,106 million
won for the years ended December 31, 2020 and 2019, respectively. Operating expenses directly related
to the investment properties where rental fee was earned is amounting to 2,807 million won and 3,010
million won.
(5) The lease payments expected to be received in the future under lease contracts relating to investment
properties as of December 31, 2020 and 2019 are as follows (Unit: Korean Won in millions):
December 31, 2020
December 31, 2019
Lease payments:
Within a year
More than 1 year and within 2 years
More than 2 years and within 3 years
More than 3 years and within 4 years
More than 4 years and within 5 years
More than 5 years
Total
11,553
8,403
7,545
7,154
4,312
2534
41,501
6,574
4,924
4,018
3,618
3,126
241
22,501
in millions):
Premises and equipment
(owned)
Right-of-use asset
Carrying value
Premises and equipment
(owned)
Right-of-use asset
Carrying value
Land
Building
Equipment
and vehicles
December 31, 2020
Leasehold
improvement
Construction
in progress Structures
Total
1,726,045
787,040
435,132
-
1,726,045 1,222,172
268,225
12,423
280,648
50,085
8,246
-
-
50,085
8,246
2
-
2
2,839,643
447,555
3,287,198
Land
Building
Equipment
and vehicles
December 31, 2019
Leasehold
improvement
Construction
in progress Structures
Total
1,761,159
-
1,761,159
802,299
449,878
1,252,177
278,016
17,236
295,252
54,839
1,287
-
-
54,839
1,287
2
-
2
2,897,602
467,114
3,364,716
(2) Details of premises and equipment (owned) as of December 31, 2020 and 2019 are as follows (Unit:
Korean Won in millions):
Acquisition cost
Accumulated depreciation
Accumulated impairment
losses
Net carrying value
Acquisition cost
Accumulated depreciation
Accumulated impairment
losses
Net carrying value
Land
Building
1,726,705 1,076,647
- (289,607)
Equipment
and vehicles
1,142,653
(874,428)
December 31, 2020
Leasehold
improvement
478,290
(428,205)
Construction
in progress Structures
20
(18)
8,246
-
Total
4,432,561
(1,592,258)
(660)
1,726,045
-
787,040
-
268,225
-
50,085
-
8,246
-
2
(660)
2,839,643
Land
Building
1,761,819 1,063,756
- (261,457)
Equipment
and vehicles
1,123,101
(845,085)
December 31, 2019
Leasehold
improvement
463,181
(408,342)
Construction
in progress Structures
20
(18)
1,287
-
Total
4,413,164
(1,514,902)
(660)
1,761,159
-
802,299
-
278,016
-
54,839
-
1,287
-
2
(660)
2,897,602
298
- 115 -
- 116 -
299
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(3) Details of changes in premises and equipment (owned) are as follows (Unit: Korean Won in millions):
(5) Details of changes in right-of-use assets for the years ended December 31, 2020 and 2019 are as follows
(Unit: Korean Won in millions):
For the year ended December 31, 2020
Equipment
and vehicles
Construction
in progress Structures
Total
Beginning balance
Acquisitions
Disposals
Depreciation
Transfer
Foreign currencies
Land
1,761,159
3,787
(8,326)
-
(30,847)
Building
802,299
26,972
(1,719)
(34,572)
(2,048)
translation adjustments
Business combination
Others
Ending balance
(836)
1,108
-
1,726,045
(882)
81
(3,091)
787,040
Leasehold
improvement
54,839
26,124
(688)
(30,579)
-
(830)
437
782
50,085
278,016
84,828
(605)
(94,388)
118
(1,849)
2,150
(45)
268,225
1,287
7,751
-
-
(118)
(82)
-
(592)
8,246
2 2,897,602
149,462
-
-
(11,338)
- (159,539)
(32,895)
-
(4,479)
-
3,776
-
-
(2,946)
2 2,839,643
Beginning balance
Acquisitions
Disposals
Depreciation
Classified as held-for-sale
Transfer
Foreign currencies
translation adjustments
Business combination
Others
Ending balance
Land
1,481,871
186,303
(3,015)
-
(21)
93,956
880
1,185
-
1,761,159
Building
661,912
87,667
(2,245)
(30,766)
(74)
83,260
801
74
1,670
802,299
For the year ended December 31, 2019
Equipment
and vehicles
240,013
119,474
(1,203)
(87,453)
-
3,670
1,459
926
1,130
278,016
Leasehold
improvement
57,594
28,788
(2,738)
(27,134)
-
912
609
1
(3,193)
54,839
Construction
in progress Structures
Total
9,099
7,315
-
-
-
(14,886)
36
-
(277)
1,287
3 2,450,492
429,547
-
(9,201)
-
(145,354)
(1)
(95)
-
166,912
-
3,785
-
2,186
-
-
(670)
2 2,897,602
(4) Details of right-of-use assets as of December 31, 2020 and 2019 are as follows (Unit: Korean Won in
millions):
Acquisition cost
Accumulated depreciation
Net carrying value
Acquisition cost
Accumulated depreciation
Net carrying value
Building
720,417
(285,285)
435,132
Building
615,201
(165,323)
449,878
December 31, 2020
Equipment and vehicles
28,463
(16,040)
12,423
December 31, 2019
Equipment and vehicles
25,563
(8,327)
17,236
Total
748,880
(301,325)
447,555
Total
640,764
(173,650)
467,114
Beginning balance
New contracts
Changes in contract
Termination
Depreciation
Business combination
Others
Ending balance
Beginning balance
New contracts
Changes in contract
Termination
Depreciation
Business combination
Others
Ending balance
Building
For the year ended December 31, 2020
Equipment and vehicles
Total
449,878
224,494
10,729
(18,925)
(224,946)
3,210
(9,308)
435,132
17,236
6,831
32
(574)
(11,716)
381
233
12,423
Building
For the year ended December 31, 2019
Equipment and vehicles
Total
416,828
251,992
-
(3,803)
(219,743)
5,438
(834)
449,878
18,963
8,306
-
(178)
(9,984)
114
15
17,236
467,114
231,325
10,761
(19,499)
(236,662)
3,591
(9,075)
447,555
435,791
260,298
-
(3,981)
(229,727)
5,552
(819)
467,114
16. INTANGIBLE ASSETS
(1) Details of intangible assets are as follows (Unit: Korean Won in millions):
Goodwill
Industrial
property rights
Development
cost
Other
intangible
assets
Membership
deposit
Construction
in progress
December 31, 2020
Acquisition cost
Accumulated amortization
Accumulated impairment
losses
Net carrying value
334,290
-
-
334,290
1,810
(1,101)
582,998 1,114,615
(875,636)
(374,125)
-
709
-
208,873
(33,534)
205,445
39,454
-
(3,363)
36,091
6,669
-
-
6,669
Goodwill
Industrial
property rights
Development
cost
Other
intangible
assets
Membership
deposit
Construction
in progress
December 31, 2019
Acquisition cost
Accumulated amortization
Accumulated impairment
losses
Net carrying value
350,682
-
-
350,682
1,576
(884)
517,224 1,036,445
(776,305)
(292,031)
-
692
-
225,193
(25,993)
234,147
32,583
-
(3,253)
29,330
4,066
-
-
4,066
Total
2,079,836
(1,250,862)
(36,897)
792,077
Total
1,942,576
(1,069,220)
(29,246)
844,110
300
- 117 -
- 118 -
301
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(2) Details of changes in intangible assets are as follows (Unit: Korean Won in millions):
2)
Impairment test
For the year ended December 31, 2020
Goodwill
Industrial
property rights
Beginning balance
Acquisitions
Disposal
Amortization (*)
Impairment losses
Transfer
Foreign currencies
translation
adjustments
Business combination
Others
Ending balance
350,682
-
-
-
-
-
(14,802)
-
(1,590)
334,290
692
233
-
(216)
-
-
-
-
-
709
Development
cost
225,193
53,273
-
(71,620)
-
428
Other
intangible
assets
234,147
41,329
-
(64,822)
(7,692)
164
-
2,403
(804)
208,873
(2,208)
4,199
328
205,445
29,330
5,183
(782)
-
(99)
-
(15)
2,079
395
36,091
Membership
deposit
Construction
in progress
4,066
3,197
-
-
-
(592)
Total
844,110
103,215
(782)
(136,658)
(7,791)
-
(2)
-
-
6,669
(17,027)
8,681
(1,671)
792,077
(*) Amortization of other intangible assets amounting to 11,890 million won is included in other operating
expenses.
For the year ended December 31, 2019
Goodwill
Industrial
property rights
Membership
deposit
Construction
in progress
Development
cost
240,320
41,373
-
562
318
-
(188)
(64,415)
-
-
-
7,915
Other
intangible
assets
169,024
100,671
-
(63,810)
(25,858)
7,188
2,292
-
-
-
692
-
-
-
225,193
44,365
275
234,147
23,597
4,931
(675)
-
(939)
-
60
2,143
213
29,330
10,415
8,754
-
-
-
(15,103)
Total
597,520
156,047
(675)
(128,413)
(26,797)
-
-
-
-
4,066
12,586
233,354
488
844,110
Beginning balance
Acquisitions
Disposal
Amortization (*)
Impairment losses
Transfer
Foreign currencies
translation
adjustments
Business combination
Others
Ending balance
153,602
-
-
-
-
-
10,234
186,846
-
350,682
(*) Amortization of other intangible assets amounting to 22,317 million won is included in other operating
expenses.
(3) Goodwill
1) Details of allocated goodwill based on each cash-generating unit as of December 31, 2020 and 2019
are as follows (Unit: Korean won in million):
Cash-generating unit (*1)
December 31, 2020
December 31, 2019
Woori Asset Management Corp.
Woori Global Asset Management Co., Ltd.
Woori Asset Trust Co., Ltd.
PT Bank Woori Saudara Indonesia 1906 Tbk (*2)
WB Finance Co., Ltd (*3)
Others
Total
43,036
2,030
141,780
92,831
47,924
6,689
334,290
43,036
2,030
141,780
106,173
49,374
8,289
350,682
(*1) Allocated to the cash-generating unit that will benefit from the synergy effect of the business combination,
and the cash-generating unit is generally comprised of the operating segment or sub-sectors.
(*2) The Group has acquired Saudara Bank to expand retail sales in Indonesia, and recognized the goodwill as it is
expected to strengthen the competitiveness by securing a local sales network in Indonesia.
(*3) The Group has acquired VisionFund Cambodia to expand Cambodian retail sales, and recognized goodwill
based on the economies of scale and acquired customer base.
The recoverable amount of the cash-generating unit is measured at larger amount among the fair value
less costs to sell or the value to use.
The net fair value is calculated by deducting costs of disposal from the amount received from the sale of
the cash-generating unit in an arm’s length transaction between the parties with reasonable judgment
and willingness to negotiate. In case of difficulty in measuring this amount, the sale amount of a similar
cash-generating unit in the past market is calculated by reflecting the characteristics of the cash-
generating unit. If reliable information related to fair value less costs to sell is not available, value in use
is considered as recoverable amount. Value in use is the present value of future cash flows expected to
be generated by the cash-generating unit. Future cash flows are estimated based on the latest financial
budget approved by the management, with an estimated period of up to five years. The Group applied
0.0% - 1.0% growth rate to estimate future cash flow for the period over five years. The main
assumptions used to estimate cash flows are about the size of the market and the share of the group. The
appropriate discount rate for discounting future cash flows is the pre-tax discount rate, including
assumptions about risk-free interest rates, market risk premium, and systemic risk of cash-generating
units. The impairment test, which compares the carrying amount and recoverable amount of the cash-
generating unit to which goodwill has been allocated, is conducted every year and every time an
impairment sign occurs.
Category
Discount rate (%).
Terminal growth rate (%)
Recoverable amount.
Carrying amount
Woori Asset
Management
Corp.
Woori
Global Asset
Management
Co., Ltd
PT Bank
Woori
Saudara
Indonesia
1906 Tbk
15.24
1.0
129,877
126,522
14.89
1.0
55,346
30,475
11.41
0.0
573,559
571,704
WB Finance
Co., Ltd
16.1
0.0
196,977
142,224
Woori Asset
Trust Co., Ltd.
19.68
1.0
285,319
238,857
As a result of the impairment test on goodwill, it is determined that the carrying amount of the cash-
generating unit to which the goodwill has been allocated will not exceed the recoverable amount.
3) Sensitivity analysis
The sensitivity of the fair value measurement to changes in significant but unobservable inputs used in
measuring fair value is as follows (Unit: Korean Won in millions):
Category
Discount rate
(%).
Terminal growth
rate (%)
Increase by
1.0% point
Decrease by
1.0% point
Increase by
1.0% point
Decrease by
1.0% point
Woori Asset
Trust Co., Ltd.
Woori Asset
Management
Corp.
Woori
Global Asset
Management
Co., Ltd
PT Bank
Woori
Saudara
Indonesia
1906 Tbk
WB Finance
Co., Ltd
(23,618)
(7,211)
(3,623)
(49,650)
(14,117)
27,210
8,629
4,393
59,328
16,053
13,798
5,033
2,660
38,031
7,904
(12,008)
(4,221)
(2,203)
-
-
(*) In the case of PT Bank Woori Saudara Indonesia 1906 Tbk and WB Finance Co., Ltd, declining cases are
excluded from the analysis as the permanent growth rate was assumed to be 0%.
302
- 119 -
- 120 -
303
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
17. ASSETS HELD FOR SALE
18. ASSETS SUBJECT TO LIEN AND ASSETS ACQUIRED THROUGH FORECLOSURES
Assets held for distribution (sale) are as follows (Unit: Korean Won in millions):
(1) Assets subjected to lien are as follows (Unit: Korean Won in millions):
Assets (*)
Premises and equipment
Investments of associates
Others
Total
December 31, 2020
2,130
50,411
7,461
60,002
December 31, 2019
95
-
10,461
10,556
(*) The Group classifies assets as held for sale that are highly likely to be sold within one year from
December 31, 2020 or December 31, 2019.
The Group measured assets held for sale at the lower of their net fair value or carrying amount.
The Group has decided to sell some of the premises and equipment through internal consultation during the
current term and classifies the premises as non-current assets held for sale. The asset is expected to be sold
within 12 months, and the premises and equipment that was scheduled to be sold at the end of the prior term
has been sold and removed. In addition, the investment assets of the associates, which are counted as assets
held for sale as of the end of the current term, are likely to be sold within one year of the end of the current
term according to the management's decision. On the other hand, other assets that are expected to be sold as
of the end of the current term are classified as assets that are expected to be sold within one year due to the
possibility of being sold as buildings and land acquired through auction.
Financial assets at
FVTPL
Collateral given to
Korean treasury and
Kookmin bank and
government bonds and
others
Korean treasury and
government bonds and
others
others
Korea Securities
Depository
Korean treasury and
Shinhan Investment
Corp.
Korea Securities
Depository
Kookmin bank and
others
TIMEFOLIO Co., Ltd.
Korea Securities
Depository
government bonds and
others
Korean financial institutions’
debt securities and others
Korean financial institutions’
debt securities and others
Korean financial institutions’
debt securities and others
Financial assets at
Korean treasury and
FVTOCI
Securities at
amortized cost
government bonds and
others
Korean financial institutions’
debt securities and others
Foreign financial institutions’
debt securities
Korean treasury and
government bonds and
others
December 31, 2020
Amount
Reason for collateral
Related to bonds sold under
repurchase agreements (*)
259,835
157,021
42,428
Securities borrowing
collateral
Collateral for futures
transaction
Securities borrowing
148,961
collateral
150,496
Related to bonds sold under
repurchase agreements (*)
Collateral for futures
19,958
transaction
Related to bonds sold under
repurchase agreements (*)
473
The BOK and others
Settlement risk and others
1,621,941
STANDARD
BANKLONDON LTD
137,842
The BOK and others
Related to bonds sold under
repurchase agreements (*)
Settlement risk and others
Foreign financial institutions’
NATIXIS and others
debt securities
Foreign financial institutions’
Federal Reserve Bank
8,111,193
40,987
Related to bonds sold under
repurchase agreements (*)
Related to the borrowing
Loan at amortized
cost and other
financial assets
debt securities
14,377
limit
Due from banks in local
Daishin AMC Co.,Ltd.
Right of pledge
currency
and others
1,500
Other due from banks in local
Samsung Securities Co.,
Margin deposit for futures
currency
Other due from banks in local
currency
Other due from banks in
foreign currencies
Ltd. and others
Korea Federation of
Savings Banks
JPMORGAN CHASE
BANK and others
Foreign currency loan bonds
Industrial and
Investment real estate Land and building
Mortgage loan
Commercial Bank of
China
Public offering
Credit Counselling &
Recovery Service and
others
39,005
or option
Domestic exchange
47,805
business
Collateral for CSA and
755,177
others
Related to bonds sold under
repurchase agreements (*)
50,088
3,190,889 Related to covered bonds
Right to collateral and
others
5,676
Premises and
equipment
Land and building
Credit Counselling &
Right to collateral and
Total
Recovery Service and
others
others
1,969
14,797,621
(*) The Group has the agreements to repurchase the sold assets at the predetermined price or the price that includes the
rate of return and to provide the guarantee on the assets. The transferee has the right to sell or to provide as guarantee.
Therefore, the Group does not derecognize the assets, but recognizes the relevant amounts as liability (bonds sold
under repurchase agreements). The asset is equivalent to a mortgage-backed debt security.
304
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305
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Collateral given to
December 31, 2019
Amount
Reason for collateral
(2) As of December 31, 2020 and 2019 there is no asset acquired through foreclosures.
Financial assets at
Korean treasury and
Nonghyup bank
FVTPL
government bonds and
others
Korean corporate debt
Kookmin bank and
19,720 Related to bonds sold under
repurchase agreements (*)
168,327 Related to bonds sold under
repurchase agreements (*)
3,008 Collateral for futures
transaction
219,938 Related to bonds sold under
repurchase agreements (*)
others
Eugene investment &
futures co., Ltd. .
Nonghyup bank and
others
The BOK and others
5,127,383 Settlement risk and others
Spain BBVA and others
Nonghyup bank futures
and others
Korea Securities
Depository
56,975 Related to bonds sold under
repurchase agreements (*)
9,042 Collateral for futures
transaction
5,570 Related to bonds sold under
repurchase agreements (*)
The BOK and others
6,190,630 Settlement risk and others
securities
Korean corporate debt
securities
Korean financial institutions’
debt securities and others
Korean financial institutions’
debt securities and others
Foreign financial institutions’
debt securities
Korean corporate debt
securities
Korean treasury and
government bonds
Korean treasury and
government bonds and
others
Foreign financial institutions’
NATIXIS and others
debt securities
Due from banks in local
Branch of IBK at Phnom
currency
Penh and others
37,271 Related to bonds sold under
repurchase agreements (*)
11,352 Collateral deposits for local
currency borrowings
Due from banks in local
Daishin AMC and others
1,500 Right of pledge
currency
Other due from banks in local
Samsung Securities Co.,
17,345 Margin deposit for futures
currency
Other due from banks in
foreign currencies
Foreign currency loans
Ltd. and others
Korea Investment &
Securities Co., Ltd.
and others
Industrial and
Commercial Bank of
China
or option
180,919 Foreign margin deposit for
future or option and others
82,594 Related to bonds sold under
repurchase agreements (*)
Land and building
Credit Counselling &
689 Right to collateral and
Recovery Service and
others
others
Total
12,132,263
Financial assets at
FVTOCI
Securities at
amortized cost
Loan at amortized
cost and other
financial assets
Premises and
equipment
(*) The Group has the agreements to repurchase the sold assets at the predetermined price or the price that includes the
rate of return and to provide the guarantee on the assets. The transferee has the right to sell or to provide as guarantee.
Therefore, the Group does not derecognize the assets, but recognizes the relevant amounts as liability (bonds sold
under repurchase agreements). The asset is equivalent to a mortgage-backed debt security.
Investment properties
Land
Other assets
Land for non-business use
Building for non-business use
Movables for non-business use
Real estate assessment provision for non-
business use
Sub-total
Assets held for sale
Land
Building
Others
Sub-total
Total
December 31, 2020
December 31, 2019
5,425
10,684
1,966
155
(670)
12,135
5,477
3,568
546
9,591
27,151
-
27
-
-
(27)
-
5,143
4,742
577
10,462
10,462
(3) Securities loaned are as follows (Unit: Korean Won in millions):
Financial assets at
Korean treasury and government
December 31,
2020
December 31,
2019
Loaned to
Korea Securities Finance
FVTOCI
bonds
100,345
80,737
Corporation
Securities loaned are lending of specific securities to borrowers who agree to return the same amount of the
same security at the end of lending period.
(4) Collaterals held that can be disposed and re-subjected to lien regardless of defaults of counterparties
Fair values of collaterals held that can be disposed and re-subjected to lien regardless of defaults of
counterparties as of December 31, 2020 and 2019 are as follows (Unit: Korean Won in millions):
Securities
10,573,982
Fair values of collaterals
subjected to lien
December 31, 2020
Fair values of collaterals were disposed or re-
Securities
9,340,517
Fair values of collaterals
subjected to lien
December 31, 2019
Fair values of collaterals were disposed or re-
-
-
19. OTHER ASSETS
Details of other assets are as follows (Unit: Korean Won in millions):
Lease assets
Prepaid expenses
Advance payments
Non-operational assets
Others
Total
December 31, 2020
December 31, 2019
1,116,175
170,820
28,256
12,135
21,608
1,348,994
-
135,010
78,306
-
20,330
233,646
306
- 123 -
- 124 -
307
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
20. FINANCIAL LIABILITIES AT FVTPL
21. DEPOSITS DUE TO CUSTOMERS
(1) Financial liabilities at FVTPL are as follows (Unit: Korean Won in millions):
Details of deposits due to customers by type are as follows (Unit: Korean Won in millions):
Financial instruments at fair value through profit
or loss measured at fair value
Financial liabilities at fair value through profit or
loss designated as upon initial recognition
Total
December 31, 2020
December 31, 2019
6,794,192
19,630
6,813,822
2,870,676
87,626
2,958,302
(2) Financial liabilities at fair value through profit or loss measured at fair value are as follows (Unit: Korean
Won in millions):
Deposits
Gold banking liabilities
Borrowings
Securities sold
Derivative liabilities
Total
December 31, 2020
December 31, 2019
49,279
-
285,026
6,459,887
6,794,192
27,530
-
-
2,843,146
2,870,676
(3) Financial liabilities at fair value through profit or loss designated as upon initial recognition as of
December 31, 2020 and 2019 are as follows (Unit: Korean Won in millions):
Equity-linked securities
Equity-linked securities in short position
19,630
87,626
December 31, 2020
December 31, 2019
Financial liabilities at fair value through profit or loss designated as upon initial recognition are designated in
order to eliminate or significantly reduce accounting mismatch arising from recognition or measurement.
(4) There are no accumulated changes in credit risk adjustments to financial liabilities at fair value through
profit or loss designated as upon initial recognition.
The adjustment to reflect Group’s credit risk is considered in measuring the fair value of equity-linked
securities index. The Group’s credit risk is determined by adjusting credit spread observed in credit rating of
Group.
(5) The difference between carrying amount and maturity amount of financial liabilities at fair value through
profit or loss designated as upon initial recognition (Financial liabilities designated as at FVTPL) are as
follows (Unit: Korean Won in millions):
Carrying amount
Nominal amount at maturity
Difference
December 31, 2020
December 31, 2019
19,630
25,780
(6,150)
87,626
97,503
(9,877)
Deposits in local currency:
Deposits on demand
Deposits at termination
Mutual installment
Deposits on notes payables
Deposits on CMA
Certificate of deposits
Other deposits
Sub-total
Deposits in foreign currencies:
Deposits in foreign currencies
Present value discount
Total
December 31, 2020 December 31, 2019
12,454,024
242,397,664
26,319
2,647,492
110,413
2,072,389
1,372,461
261,080,762
30,408,762
(12,245)
291,477,279
8,655,228
224,115,771
28,574
2,174,995
150,300
973,625
1,451,470
237,549,963
27,143,710
(8,095)
264,685,578
22. BORROWINGS AND DEBENTURES
(1) Details of borrowings are as follows (Unit: Korean Won in millions):
December 31, 2020
Lenders
Interest rate (%)
Amount
Borrowings in local currency:
Borrowings from The BOK The BOK
Borrowings from
Small Enterprise And Market
government funds
Service and others
Others
The Korea Development Bank
0.3
2,678,120
0.0 ~ 5.0
2,155,129
Sub-total
Borrowings in foreign
currencies (*):
Borrowings in foreign
currencies
and others
0.0 ~ 5.3
7,255,938
12,089,187
JPMorgan Chase & Co. and
others
(0.4) ~ 7.3
7,573,722
Bills sold
Call money
Bonds sold under repurchase
Others
Bank and others
Other financial institutions
agreements
Present value discount
Total
0.0 ~ 0.9
(0.3) ~ 3.8
(0.5) ~ 10.6
8,924
416,370
657,823
(560)
20,745,466
308
- 125 -
- 126 -
309
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
December 31, 2019
Lenders
Interest rate (%)
Amount
Borrowings in local currency:
Borrowings from The BOK The BOK
Borrowings from
Small Enterprise And Market
government funds
Service and others
Others
The Korea Development Bank
0.5 ~ 0.8
1,770,726
0.0 ~ 2.8
1,844,798
Sub-total
Borrowings in foreign
currencies (*):
Borrowings in foreign
currencies
Offshore borrowings in
foreign currencies
Sub-total
and others
0.0 ~ 5.5
6,070,201
9,685,725
The Export-Import Bank of
Korea and others
(0.3) ~ 8.3
8,566,872
HSBC, HKG
3.0
Bills sold
Call money
Bonds sold under repurchase
Others
Bank and others
Other financial institutions
agreements
Present value discount
Total
0.0 ~1.6
(0.3) ~ 3.5
1.4 ~ 12.7
34,734
8,601,606
9,367
133,519
569,002
(299)
18,998,920
(*) Included borrowing in foreign currencies under cash flow hedge amounting to 34,443 million won as of
December 31, 2019.
(2) Details of debentures are as follows (Unit: Korean Won in millions):
December 31, 2020
December 31, 2019
Interest rate (%)
Amount
Interest rate (%)
Amount
Face value of bond (*):
Ordinary bonds
Subordinated bonds
Other bonds
Sub-total
Discounts on bonds
Total
0.8 ~ 4.5
1.9 ~ 5.9
0.6 ~ 17.0
0.0 ~ 4.3
2.1 ~ 5.9
1.2 ~ 17.0
29,623,445
6,955,515
925,677
37,504,637
(25,279)
37,479,358
23,207,600
6,732,687
942,421
30,882,708
(24,653)
30,858,055
(*) Included debentures under fair value hedge amounting to 2,767,208 million won and 3,151,172 million won as
of December 31, 2020 and 2019 respectively. Also, debentures under cash flow hedge amounting to 857,531
million won and 829,082 million won are included as of December 31, 2020 and 2019 respectively.
23. PROVISIONS
(1) Details of provisions are as follows (Unit: Korean Won in millions):
Asset retirement obligation
Provisions for guarantees (*1)
Provisions for unused loan commitments
Other provisions (*2)
Total
December 31, 2020
December 31, 2019
68,402
89,592
122,155
221,494
501,643
66,485
92,486
112,554
172,455
443,980
(*1) Provisions for guarantees includes provision for financial guarantee of 66,232 million won and
62,764 million won as of December 31, 2020 and 2019, respectively.
(*2) Other provisions consist of provision for litigation, loss compensation and others.
(2) Changes in provisions for guarantees and unused loan commitments are as follows (Unit: Korean Won
in millions):
1) Provisions for guarantees
Beginning balance
Transfer to 12-month expected credit
loss
Transfer to expected credit loss for the
entire period
Transfer to credit-impaired financial
assets
Net provision (reversal) of unused
amount
Business Combination
Others (*)
Ending balance
For the year ended December 31, 2020
Stage1
Stage2
Stage3
50,801
26,303
15,382
Total
92,486
81
(60)
(21)
(396)
1,639
(1,243)
(12)
(13)
25
-
-
-
(1,124)
14,501
953
64,804
(11,124)
-
-
16,745
(6,100)
-
-
8,043
(18,348)
14,501
953
89,592
(*) Others have occurred as a result of new financial guarantee contract valued at initial fair value.
Beginning balance
Transfer to 12-month expected credit
loss
Transfer to expected credit loss for the
entire period
Transfer to credit-impaired financial
assets
Provisions used
Net provision (reversal) of unused
amount
Others (*)
Ending balance
For the year ended December 31, 2019
Stage1
Stage2
Stage3
44,903
33,760
11,098
Total
89,761
13,568
(13,568)
-
(317)
532
(215)
-
-
(30)
(27,711)
(14,400)
34,788
50,801
(32)
-
5,611
-
26,303
62
-
-
(27,711)
4,437
-
15,382
(4,352)
34,788
92,486
(*) Others have occurred as a result of new financial guarantee contract valued at initial fair value.
310
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
2) Provisions for unused loan commitment
Beginning balance
Transfer to 12-month expected credit
loss
Transfer to expected credit loss for the
entire period
Transfer to credit-impaired financial
assets
Net provision (reversal) of unused
amount
Business combination
Others
Ending balance
Beginning balance
Transfer to 12-month expected credit
loss
Transfer to expected credit loss for the
entire period
Transfer to credit-impaired financial
assets
Net provision (reversal) of unused
amount
Others
Ending balance
For the year ended December 31, 2020
Stage1
65,038
Stage2
Stage3
43,164
4,352
Total
112,554
8,006
(7,500)
(506)
(2,704)
3,299
(595)
(174)
(186)
360
-
-
-
(6,653)
7
(280)
63,240
16,949
-
-
55,726
(422)
-
-
3,189
9,874
7
(280)
122,155
For the year ended December 31, 2019
Stage1
74,624
Stage2
Stage3
45,285
1,626
Total
121,535
11,771
(11,024)
(747)
(1,813)
1,945
(132)
(213)
(275)
488
-
-
-
(19,394)
63
65,038
7,233
-
43,164
3,117
-
4,352
(9,044)
63
112,554
(3) Changes in asset retirement for the years ended December 31, 2020 and 2019, obligation are as follows
(Unit: Korean Won in millions):
Beginning balance
Provisions provided
Provisions used
Reversal of provisions unused
Unwinding of discount
Business combination
Others
Ending balance
For the years ended December 31
2019
2020
66,485
806
(2,958)
(106)
459
219
3,497
68,402
67,200
2,729
(2,276)
(2,926)
435
329
994
66,485
The amount of the asset retirement obligation is the present value of the best estimate of future expected
expenditure to settle the obligation – arising from leased premises as of December 31, 2020, discounted by
appropriate discount rate. The restoration cost is expected to occur by the end of each premise’s lease period,
and the Group has used average lease period of each category of leases terminated during the past years in
order to rationally estimate the lease period. In addition, the Group used average amount of actual recovery
cost for the past 3 years and the inflation rate for last year in order to estimate future recovery cost.
(4) Changes in other provisions for the years ended December 31, 2020 and 2019, are as follows (Unit:
Korean Won in millions):
Beginning balance
Provisions provided
Provisions used
Reversal of provisions unused
Foreign currencies translation adjustments
Transfer
Business combination
Others
Ending balance
(5) Others
For the years ended
December 31
2020
2019
172,455
232,629
(181,433)
(2,345)
606
(344)
-
(74)
221,494
63,637
109,875
(6,123)
(171)
1,193
-
3,820
224
172,455
1) The Group has been offering Korean won settlement services for trade with Korea and Iran;
however, the Group has stopped the services for trade in line with U.S. economic sanctions on
September 23, 2019. The Group resumed the service humanitarian goods trade only since July 13,
2020. In connection with these services, the Group is currently being investigated by the U.S.
government agencies including the U.S. prosecutors (United States Attorney’s Office and New
York State Attorney General’s Office) and New York State Financial Supervisory Service as to
whether the Group has violated United States laws by participating in prohibited transactions
involving the following countries: Iran, Sudan, Syria and Cuba, which have been sanctioned by the
U.S. In this regard, the Bureau of Foreign Assets Control concluded its investigation in December
2020 without taking any additional sanctions, but the investigation procedures of the U.S. Public
Prosecutors' Office and the New York State Financial Supervisory Service have yet to be
completed.
2) The Group recognized the provision of the estimated compensation amount related to the miss-
selling of the Derivative Linked Fund (DLF) incurred during the previous term and a fine expected
to be imposed by the Financial Supervisory Service as the best estimate for the expenditure required
to meet its obligations at the end of the reporting period.
3) For the year ended December 31, 2020, the Group recognized the provisions for the required
expenditure as the best estimate to fulfill its obligations as of December 31, 2020 due to the expected
losses of clients arising from the delay in the redemption of funds by Lime Asset Management and
the dispute settlement by the Financial Supervisory Service. As of December 31, 2020, the provision
for this case is 106.8 billion won and the advance payment is 113.9 billion won.
312
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313
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
24. NET DEFINED BENEFIT LIABILITY(ASSET)
The characteristics of the Group’s defined benefit retirement pension plans are as follows:
Employees and directors with one or more years of service are entitled to receive a payment upon termination
of their employment, based on their length of service and rate of salary at the time of termination. The assets
of the plans are measured at their fair value at the end of reporting date. The plan liabilities are measured
using the projected unit method, which takes account of projected earnings increases, using actuarial
assumptions that give the best estimate of the future cash flows that will arise under the plan liabilities.
The Group is exposed to various risks through defined benefit retirement pension plan, and the most
significant risks are as follows:
Volatility of asset
The defined benefit obligation was estimated with an interest rate
Decrease in profitability of blue
A decrease in profitability of blue chip bonds will be offset by some
calculated based on blue chip corporate bonds earnings. A deficit
may occur if the rate of return of plan assets falls short of the interest
rate.
chip bonds
Risk of inflation
increase in the value of debt securities that the employee benefit plan
owns but will bring an increase in the defined benefit obligation.
Defined benefit obligations are related to inflation rate; the higher the
inflation rate is, the higher the level of liabilities. Therefore, deficit
occurs in the system if an inflation rate increases.
(1) Details of net defined benefit liability are as follows (Unit: Korean Won in millions):
Present value of defined benefit obligation
Fair value of plan assets
Net defined benefit liabilities (*)
December 31, 2020
December 31, 2019
1,610,680
(1,564,101)
46,579
1,442,859
(1,352,971)
89,888
(*) Net defined benefit liability of 46,579 million won and 89,888 million won as of December 31, 2020
and 2019 is the subtracted amount of the net defined benefit asset of 5,658 million won 2,582
million won from the net defined benefit liability of 52,237 million won and 92,470 million won.
(2) Changes in the carrying value of defined benefit obligation are as follows (Unit: Korean Won in
millions):
Beginning balance
Transfer-in / out
Current service cost
Interest cost
Remeasurements Financial assumption
Demographic assumptions
Experience adjustments
Retirement benefit paid
Foreign currencies translation adjustments
Business combination
Others
Ending balance
For the years ended December 31
2019
2020
1,442,859
-
174,509
34,653
(20,838)
4,161
(4,481)
(55,864)
(119)
34,001
1,799
1,610,680
1,275,020
93
163,369
32,693
32,831
49,453
(33,518)
(79,908)
179
4,674
(2,027)
1,442,859
(3) Changes in the plan assets are as follows (Unit: Korean Won in millions):
Beginning balance
Transfer-in / out
Interest income
Remeasurements
Employer’s contributions
Retirement benefit paid
Business combination
Others
Ending balance
For the years ended December 31
2019
2020
1,352,971
-
34,534
(7,666)
211,505
(52,627)
27,599
(2,215)
1,564,101
1,101,911
93
30,937
125
292,095
(76,304)
6,369
(2,255)
1,352,971
(4) Plan assets consist of fixed deposits and others as of December 31, 2020 and 2019.
Cash and due from banks
December 31, 2020
December 31, 2019
1,564,101
1,352,971
Meanwhile, Among plan assets, realized returns on plan assets amount to 26,868 million won and
31,062 million won for the years ended December 31, 2020 and 2019, respectively. The contribution
expected to be paid in the next accounting year amounts to 170,637 million won.
(5) Current service cost, net interest income, loss (gain) on the curtailment or settlement and
remeasurements recognized in the consolidated statements comprehensive income are as follows (Unit:
Korean Won in millions):
Current service cost
Net interest expense (income)
Cost recognized in net income
Remeasurements (*)
Cost recognized in total comprehensive income
(*) Amount before tax
For the years ended December 31
2019
2020
174,509
119
174,628
(13,492)
161,136
163,369
1,756
165,125
48,641
213,766
314
- 131 -
Retirement benefits related to defined contribution plans recognized as expenses are 3,827 million won,
and 3,297 million won for the years ended December 31, 2020 and 2019, respectively.
- 132 -
315
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(6) Key actuarial assumptions used in net defined benefit liability measurement are as follows:
26. DERIVATIVES
Discount rate
Future wage growth rate
Mortality rate
Retirement rate
December 31, 2020
2.13% ~ 2.97%
2.05% ~ 7.00%
Issued by Korea Insurance
Development Institute
Experience rate for each
employment classification
December 31, 2019
2.18~2.50%
1.89~6.00%
Issued by Korea Insurance
Development Institute
Experience rate for each
employment classification
The weighted average maturity of defined benefit liability is a minimum of 6.74 to a maximum 15.00
years.
(7) The sensitivity to actuarial assumptions used in the assessment of defined benefit obligation is as
follows (Unit: Korean Won in millions):
Discount rate
Future wage growth rate
Increase by 1% point
Decrease by 1% point
Increase by 1% point
Decrease by 1% point
December 31, 2020 December 31, 2019
(151,104)
178,434
176,169
(152,174)
(165,754)
195,475
193,149
(167,037)
25. OTHER FINANCIAL LIABILITIES AND OTHER LIABILITIES
Other financial liabilities and other liabilities are as follows (Unit: Korean Won in millions):
December 31, 2020
December 31, 2019
Other financial liabilities:
Accounts payable
Accrued expenses
Borrowings from trust accounts
Agency business revenue
Foreign exchange payables
Domestic exchange settlement credits
Lease liabilities
Other miscellaneous financial liabilities
Present value discount
Sub-total
Other liabilities:
Unearned income
Other miscellaneous liabilities
Sub-total
Total
4,028,639
2,049,401
2,984,031
466,485
789,189
180,251
407,431
3,317,358
(6,968)
14,215,817
254,702
219,111
473,813
14,689,630
6,131,339
2,516,231
3,277,795
362,820
1,153,457
1,261,928
419,045
2,587,193
(3,041)
17,706,767
224,840
195,631
420,471
18,127,238
(1) Derivative assets and derivative liabilities are as follows (Unit: Korean Won in millions):
Nominal
amount
For cash
flow hedge
Assets
For fair value
hedge
For
trading
For cash
flow hedge
Liabilities
For fair value
hedge
For
trading
December 31, 2020
Interest rate:
Futures
Swaps
Purchase options
Written options
Currency:
Futures
Forwards
Swaps
Purchase options
Written options
Equity:
184,413
137,057,240
330,000
285,440
2,546
105,146,634
87,249,320
1,147,877
1,632,048
Futures
Forwards
Swaps
Purchase options
Written options
Total
123,742
11
269,039
9,863,110
10,369,009
353,660,429
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
174,820
-
-
-
318,545
6,271
-
-
1,476
-
-
-
-
- 2,541,957
- 3,325,135
59,329
-
-
-
-
-
-
-
-
-
-
-
650,505
-
174,820 6,901,742
-
-
63,265
-
-
-
-
-
-
-
64,741
-
-
28 524,190
-
5,419
-
-
-
-
- 2,848,980
- 2,415,610
-
-
23,271
-
-
-
-
-
12,533
-
-
-
- 629,884
28 6,459,887
Nominal
amount
For cash
flow hedge
Assets
For fair value
hedge
For
trading
For cash
flow hedge
Liabilities
For fair value
hedge
For
trading
December 31, 2019
Interest rate:
Futures
Swaps
Purchase options
Written options
Currency:
Futures
Forwards
Swaps
Purchase options
Written options
Equity:
124,737
150,731,987
460,000
395,789
1,934
113,988,295
82,125,050
1,588,746
2,341,179
Futures
Forwards
Swaps
Purchase options
Written options
Total
630,562
11
1,280,436
8,851,984
8,978,953
371,499,663
-
-
-
-
-
111,764
-
-
-
300,750
11,888
-
-
-
9,367
-
-
-
-
-
-
-
9,367
-
-
- 1,447,811
966,181
-
18,835
-
-
-
-
-
-
-
-
-
-
1,217
175,221
-
111,764 2,921,903
-
1,323
-
-
-
321
5,193
-
-
-
-
-
-
-
6,837
-
-
- 413,195
-
-
9,655
-
-
-
- 1,030,246
- 1,106,423
-
-
9,403
-
-
-
-
-
54,393
-
-
-
- 219,831
- 2,843,146
Derivatives held for trading are classified into financial assets at FVTPL (Note 7) and financial liabilities at
FVTPL (Note 20), and derivatives designated for hedging are presented as a separate line item in the
consolidated statements of financial position.
316
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317
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(2) Overview of the Group’s hedge accounting
2) Cash Flow Hedge
The hedging relationships the entity applies fair value hedge accounting and cash flow hedge accounting
to are affected by interest rate which is related with Interest Rate Benchmark Reform. The interest rates
to which the hedging relationships are exposed are USD 3M LIBOR, USD 6M LIBOR and AUD 3M
BBSW. The nominal amounts of hedging instruments related to 3M LIBOR, 6M LIBOR and 3M
BBSW in the hedging relationships of the Group are USD 1,800,000,000, USD 500,000,000 and AUD
150,000,000, respectively. The entity pays close attention to discussions in the market and industry
regarding the applicable alternative benchmark interest rates for the exposed interest rate. The entity
judges related uncertainty is expected to be no longer present when the exposed interest rates are
replaced by the applicable benchmark interest rates.
1) Fair value hedge
As of the December 31, 2020, the Group has applied fair value hedge on fixed interest rate foreign
currency denominated debentures amounting to 2,767,208 million won. The purpose of the hedging is to
avoid fair value volatility risk of fixed interest rate foreign currency denominated debentures derived
from fluctuations of market interest rate, and as such the Group entered into interest rate swap
agreements designated as hedging instruments.
Pursuant to the interest rate swap agreement, by swapping the calculated difference between the fixed
interest rate and floating interest rate applied to the nominal value, the fair value fluctuation risk is
hedged as the foreign currency denominated debentures fixed interest rate terms are converted to
floating interest rate. Pursuant to the interest rate swap agreement, hedge ratio is determined by
matching the nominal value of hedging instrument to the face value of the hedged item.
In this hedging relationship, only the market interest rate fluctuation, which is the most significant part
of the fair value change of the hedged item, is designated as the hedged risk, and other risk factors
including credit risk are not included in the hedged risk. Therefore, the ineffective portion of the hedge
could arise from fluctuations in the timing of the cash flow of the hedged item, price margin set by
counterparty of hedging instrument, and unilateral change in credit risk of any party of hedging
instrument.
The interest rate swap agreements and the hedged items are subject to fluctuations in the underlying
market rate of interest and the Group expects the fair value of the interest rate swap contract and the
value of the hedged item to generally change in the opposite direction.
The fair value of the interest rate swap at the end of the reporting period is determined by discounting
future cash flows estimated by using the yield curve at the end of the reporting period and the credit risk
embedded in the contract and the average interest rate is determined based on the outstanding balance at
the end of the reporting period. The variable interest rate applied to the interest rate swap is USD Libor
3M (6M) plus spread and AUD BBSW 3M plus spread. In accordance with the terms of each interest
rate swap contract designated as a hedging instrument, the Group receives interest at a fixed interest rate
and pays interest at a variable interest rate.
As of the December 31, 2020, the Group has applied cash flow hedge on local currency denominated
debentures amounting to 149,936 million won, debentures on foreign currency amounting to 707,595
million won. The Group’s hedging strategies are to ① Mitigate risks of cash flow fluctuation from
variable interest rate debentures on local currency due to changes in market interest rate by entering into
an interest rate swap contract and thereby designating it as hedging instrument; ② Mitigate the risks of
cash flow fluctuation from principal and interest of variable interest rate debentures denominated in
foreign currency due to changes in foreign exchange rates and interest rates by entering into a currency
swap contract and thereby designating it as hedging instrument; ③ Mitigate the risks of cash flow
fluctuation from principal and interest of fixed interest rate debentures denominated in foreign currency
due to changes in foreign exchange rates by entering into a currency swap contract and thereby
designating it as hedging instrument and ④ Mitigate the risks of cash flow fluctuation in variable
interest rate foreign currency borrowings resulting from changes in market interest rates and designate it
as a hedging instrument through entering into currency swap contracts and interest rate swap contracts.
This means exchanging a predetermined nominal amount as set forth in the interest rate swap contract
adjusted by the differences between the fixed and variable interest rates, which results in the conversion
of interest rates of debentures in local currency from variable interest into fixed interest, eliminating the
cash flow fluctuation risk.
In addition, this also means a payment of predetermined principal amount as set forth in the currency
swap adjusted by fixed interest rate, an exchange of an amount calculated by applying variable interest
rate to USD or applying fixed interest rate to SGD, and an exchange of the principal denominated in
KRW and principal denominated in foreign currency at maturity eliminating cash flow fluctuation risk
on principal and interest.
The hedge ratio is determined by matching the nominal amount of the hedging instrument to the face
amount of the hedged item in accordance with interest rate swap and currency swap.
Only interest rate and foreign exchange rate fluctuation risk, which is the most significant factor in the
cash flow fluctuation of the hedged item, is addressed in this hedging relationship, and other risk factors
such as credit risk are not subject to hedging.
Thus, there could be hedge ineffectiveness arising from price margin set by the counterparty of hedging
instruments and unilateral change in credit risk of any party in the transaction.
The interest rate swap, currency swap contract and the hedged item are all affected by the changes in
market interest rate and foreign exchange rates which are basic factors of the derivative. The Group
expects that the value of interest rate swap contract, currency swap contract and value of the hedged
item will generally fluctuate in opposite direction.
318
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319
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(3) The nominal amounts of the hedging instrument are as follows (Unit: USD, AUD, EUR, SGD, JPY and
(4) The average interest rate and average currency rate of the hedging instrument as of December 31, 2020
Korean Won in millions):
Fair value hedge
Interest rate risk
1 year or less
December 31, 2020
1 year to 5
years
More than 5
years
Total
Interest rate swap (USD)
Interest rate swap (AUD)
1,000,000,000 1,000,000,000
150,000,000
-
300,000,000 2,300,000,000
150,000,000
-
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)
Foreign currencies translation
risk and interest rate risk
Currency swap (USD)
Foreign currencies translation
risk
Currency swap (SGD)
Fair value hedge
Interest rate risk
100,000
50,000
-
150,000
130,000,000
470,000,000
-
600,000,000
68,000,000
-
-
68,000,000
1 year or less
December 31, 2019
1 year to 5
years
More than 5
years
Total
Interest rate swap (USD)
350,000,000 2,000,000,000
300,000,000 2,650,000,000
Cash flow hedge
Interest rate risk
Interest rate swap (EUR)
Interest rate swap (KRW)
Foreign currencies translation
risk and interest rate risk
Currency swap (USD)
Foreign currencies translation
risk
Currency swap (SGD)
Currency forward (JPY)
-
-
26,635,556
100,000
-
-
26,635,556
100,000
150,000,000
330,000,000
-
480,000,000
136,000,000
68,000,000
49,325,155 1,059,903,932
-
204,000,000
- 1,109,229,087
and 2019 are as follows:
Fair value hedge
Interest rate risk
Interest rate swap (USD)
Interest rate swap (AUD)
Cash flow hedge
Interest rate risk
Interest rate swap (KRW)
Foreign currencies translation
risk and interest rate risk
Currency swap (USD)
Foreign currencies translation
risk
Currency swap (SGD)
Fair value hedge
Interest rate risk
Interest rate swap (USD)
Cash flow hedge
Interest rate risk
Interest rate swap (EUR)
Interest rate swap (KRW)
Foreign currencies translation
risk and interest rate risk
Currency swap (USD)
Foreign currencies translation
risk
Currency swap (SGD)
Currency forward (JPY)
December 31, 2020
Average interest rate and average exchange rate
Fixed 4.22% receipt and Libor 3M+1.71% floating paid
Fixed 5.88% receipt and Libor 6M+2.15% floating paid
0.84% receipt and BBSW 3M+0.72% paid
KRW 3Y CMS+0.40% receipt, 2.38% paid
KRW CD+0.69% receipt, 2.06% paid
KRW CD+0.33% receipt, 1.68% paid
USD 3M Libor+0.80% receipt, KRW 1.45% paid, USD/KRW = 1,155
USD 1M Libor+0.67% receipt, KRW 1.14% paid, USD/KRW = 1,190
USD 1M Libor+0.69% receipt, KRW 1.02% paid, USD/KRW = 1,199
SGD 1.91% receipt, KRW 1.98% paid, SGD/KRW = 827
December 31, 2019
Average interest rate and average exchange rate
Fixed 3.96% receipt and Libor 3M+1.61% floating paid
Fixed 5.88% receipt and Libor 6M+2.15% floating paid
3M EURIBOR receipt, EUR 0.09% paid
KRW 3Y CMS+0.40% receipt, 2.38% paid
USD 3M Libor+0.8% receipt, KRW 1.45% paid, KRW/USD = 1,155
USD 1M Libor+0.54% receipt, KRW 1.53% paid, KRW/USD = 1,158
SGD 1.91% receipt, KRW 1.98% paid, KRW/SGD = 828
KRW/JPY = 10.47
320
- 137 -
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321
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(5) The amounts related to items designated as hedging instruments are as follows (Unit: Korean Won in
(6) Details of carrying amount to hedge and amount due to hedge accounting are as follows (Unit: Korean
millions, USD, AUD, EUR, SGD and JPY):
Won in millions):
December 31, 2020
Carrying amounts of the hedging
instrument
Nominal amounts of
the hedging
instrument
Assets
Liabilities
Line item in the
statement of financial
position where the
hedging instrument is
located
Changing in fair
value used for
calculating hedge
ineffectiveness
USD 2,300,000,000
AUD 150,000,000
174,820
28
Derivative assets
(designated for hedging)
Derivative liabilities
(designated for hedging)
KRW 150,000
-
1,476
Derivative liabilities
(designated for hedging)
USD 600,000,000
-
62,893
Derivative liabilities
(designated for hedging)
SGD 68,000,000
-
Derivative liabilities
(designated for hedging)
373
57,221
(196)
(69,319)
(4,699)
December 31, 2019
Carrying amounts of the hedging
instrument
Nominal amounts of
the hedging
instrument
Assets
Liabilities
Line item in the
statement of financial
position where the
hedging instrument is
located
Changing in fair
value used for
calculating hedge
ineffectiveness
USD 2,650,000,000
111,764
Derivative assets
(designated for hedging)
-
EUR 26,635,556
KRW 100,000
-
-
43
1,280
Derivative liabilities
(designated for hedging)
Derivative liabilities
(designated for hedging)
USD 480,000,000
4,070
5,193
Derivative assets
(designated for hedging)
Derivative liabilities
(designated for hedging)
SGD 204,000,000
5,297
JPY 1,109,229,087
-
Derivative assets
(designated for hedging)
Derivative liabilities
(designated for hedging)
-
321
90,244
(43)
(615)
22,364
8,918
321
Fair value hedge
Interest rate risk
Interest rate
swap
Interest rate
swap
Cash flow hedge
Interest rate risk
Interest
rate swap
Foreign
currency
translation
risk
and interest rate
risk
Currency swap
Foreign
currency
translation risk
Currency swap
Fair value hedge
Interest rate risk
Interest rate
swap
Cash flow hedge
Interest rate risk
Interest rate
swap
Interest rate
swap
Foreign
currency
risk
translation
and interest rate
risk
Currency swap
Foreign
currency
translation risk
Currency swap
Currency
forward
December 31, 2020
Accumulated amount of
fair value hedge
adjustments on the hedged
item included in the
carrying amount of the
hedged item
Carrying amounts of
the hedged item
Assets
Liabilities
Assets
Liabilities
Line item in the
statement of
financial
position in
which the
hedged item is
included
Changing in
fair value
used for
calculating
hedge
ineffectivene
ss
Cash flow
hedge
reserve
(*)
Fair value hedge
Interest rate risk
Debentures
Cash flow hedge
Interest rate risk
Debentures
Foreign
currencies
translation risk
and interest
rate risk
Debentures
Foreign
currencies
translation risk
Debentures
(*) After tax amount
- 2,767,208
-
144,741 Debentures
(59,073)
-
-
149,936
-
- Debentures
188
(909)
-
651,704
-
55,891
-
-
- Debentures
61,823
(95)
- Debentures
6,564
(268)
December 31, 2019
Accumulated amount of
fair value hedge
adjustments on the hedged
item included in the
carrying amount of the
hedged item
Carrying amounts of
the hedged item
Assets
Liabilities
Assets
Liabilities
Line item in the
statement of
financial
position in
which the
hedged item is
included
Changing in
fair value
used for
calculating
hedge
ineffectivene
ss
Cash flow
hedge
reserve
(*)
Fair value hedge
Interest rate risk
Debentures
Cash flow hedge
Interest rate risk
Borrowings in
foreign
currencies
Debentures
Foreign
currencies
translation risk
and interest
rate risk
Debentures
Foreign
currencies
translation risk
Debentures
(*) After tax amount
- 3,151,172
-
91,368 Debentures
(85,984)
-
-
-
34,443
99,941
-
554,433
-
174,708
-
-
-
-
Borrowing
foreign
currency
-
- Debentures
43
663
(43)
(821)
- Debentures
(25,057)
(2,525)
- Debentures
(8,315)
(2,304)
322
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- 140 -
323
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
27. DEFERRED DAY 1 PROFITS OR LOSSES
Changes in deferred day 1 profits or losses are as follows (Unit: Korean Won in millions):
Beginning balance
New transactions
Amounts recognized in losses
Ending balance
For the years ended December 31
2019
2020
52,259
22,901
(68,221)
6,939
25,463
53,289
(26,493)
52,259
In case some variables to measure fair values of financial instruments are not observable in the market,
valuation techniques are utilized to evaluate such financial instruments. Those financial instruments are
recorded the transaction price as at the time of acquisition, even though there are difference noted between
the transaction price and the fair value, which is deferred and amortized to maturity using the effective
interest method and reflected in profit and loss. The table above presents the difference yet to be realized as
profit or losses.
(7) Amounts recognized in profit or loss due to the ineffective portion of fair value hedges during the
current period are as follows (Unit: Korean Won in millions):
Fair value hedge
Interest rate risk
(1,852) Other net operating income(expense)
For the year ended December 31, 2020
Hedge ineffectiveness
recognized in profit or
loss
Line item in the profit or loss that
includes hedge ineffectiveness
For the year ended December 31, 2019
Hedge ineffectiveness
recognized in profit or
loss
Line item in the profit or loss that
includes hedge ineffectiveness
Fair value hedge
Interest rate risk
4,260 Other net operating income(expense)
(8) Reclassification of profit or loss from other comprehensive income and equity related to cash flow
hedges are as follows (Unit: Korean Won in millions):
For the year ended December 31, 2020
Changes in
the value of
hedging
instruments
recognized in
OCI
Hedge
ineffective
ness
recognize
d in profit
or loss
Changes in
the value
of foreign
basis
spread
recognized
in OCI
(122)
(74)
-
(68,270)
(1,049)
5,893
(3,677)
(1,022)
320
Amounts
reclassified
from cash
flow hedge
reserve to
profit or
loss
Line item
affected in profit
or loss due to
reclassification
Other net
operating income
(expense)
-
Other net
operating income
(expense)
Other net
operating income
(expense)
64,762
5,393
Line item
recognized in the
profit or loss
Other net
operating
income
(expense)
Other net
operating
income
(expense)
Other net
operating
income
(expense)
For the year ended December 31, 2019
Changes in
the value of
hedging
instruments
recognized in
OCI
Hedge
ineffective
ness
recognize
d in profit
or loss
Changes in
the value
of foreign
basis
spread
recognized
in OCI
(658)
-
-
21,420
944
838
7,638
1,601
560
Amounts
reclassified
from cash
flow hedge
reserve to
profit or
loss
Line item
affected in profit
or loss due to
reclassification
Other net
operating income
(expense)
-
Other net
operating income
(expense)
Other net
operating income
(expense)
(23,541)
(8,215)
Line item
recognized in the
profit or loss
Other net
operating
income
(expense)
Other net
operating
income
(expense)
Other net
operating
income
(expense)
Interest rate risk
Cash
flow
hedge
Foreign currencies
translation risk
and interest rate
risk
Foreign currencies
translation risk
Interest rate risk
Cash
flow
hedge
Foreign currencies
translation risk
and interest rate
risk
Foreign currencies
translation risk
324
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- 142 -
325
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
28. EQUITY
(2) The number of authorized shares and others of the Group are as follows:
(1) Details of equity as of December 31, 2020 and 2019 are as follows (Unit: Korean Won in millions):
December 31, 2020
December 31, 2019
Capital
Common stock capital
Hybrid securities
Capital surplus
Paid in capital in excess of par
Equity method
Others
Sub-total
Capital adjustments
Treasury stocks
Other adjustments (*1)
Sub-total
Accumulated other comprehensive income
Financial assets at FVTOCI
Changes in capital due to equity method
Loss from foreign business translation
Remeasurements of defined benefit plan
Loss on evaluation of cash flow hedge
Capital related to noncurrent assets held for
sale
Sub-total
Retained earnings (*2) (*3)
Non-controlling interest (*4)
Total
3,611,338
1,895,366
608,348
-
17,763
626,111
-
(1,775,312)
(1,775,312)
(9,833)
(2,609)
(298,363)
(261,195)
(1,386)
1,226
(572,160)
19,268,265
3,672,237
26,725,845
3,611,338
997,544
608,348
1,153
16,794
626,295
-
(1,748,667)
(1,748,667)
(71,914)
915
(152,987)
(270,977)
(5,692)
-
(500,655)
18,524,515
3,981,962
25,492,332
(*1) Included 178,060 million won in capital transaction profit and loss recognized by Woori Bank and (formerly)
Woori Financial Group in 2014 and 223,228 million won due to the spin-off of Gyeongnam Bank and
Gwangju Bank. During the previous term, the Group entered an agreement to acquire additional interest in
the Woori Asset Trust Co., Ltd., and the capital adjustment reduced by 111,242 million won.
(*2) The earned surplus reserve in retained earnings amounted to 2,547,547 million won and 2,356,246 million
won as of December 31, 2020 and 2019, respectively in accordance with the relevant article.
(*3) The regulatory reserve for credit loss in retained earnings amounted to 62,830 million won as of December
31, 2020 in accordance with the Article 53 of the Financial Holding Company Act.
(*4) The hybrid securities issued by Woori Bank amounting to 3,105,070 million won and 3,660,814 million won
as of December 31, 2020 and 2019, respectively, are recognized as non-controlling interests. 162,362 million
won and 134,421 million won of dividends for the hybrid securities are allocated to net profit and loss of the
non-controlling interests for the years ended December 31, 2020 and 2019, respectively.
Shares of common stock authorized
Par value
Shares of common stock issued
Capital stock
December 31, 2020
December 31, 2019
4,000,000,000 Shares
5,000 Won
722,267,683 Shares
3,611,338 million won
4,000,000,000 Shares
5,000 Won
722,267,683 Shares
3,611,338 million won
(3) The Group issued 42,103,377 new shares in the stock exchange process with the shareholders of Woori
Card for the period from January 11, 2019, to December 31, 2019, which changed the total number of
issued shares from 680,164,306 as of the date of establishment to 722,267,683 as of December 31, 2020.
(4) Hybrid securities
The bond-type hybrid securities classified as owner’s equity are as follows (Unit: Korean Won in millions):
Issue date
Maturity
Interest rate (%)
December 31,
2020
December 31,
2019
Securities in local
currency
2019-07-18
Securities in local
currency
2019-10-11
Securities in local
currency
2020-02-06
Securities in local
currency
2020-06-12
Securities in local
currency
2020-10-23
-
-
-
-
-
Issuance cost
Total
3.49
3.32
3.34
3.23
3.00
500,000
500,000
500,000
500,000
400,000
300,000
200,000
(4,634)
1,895,366
-
-
-
(2,456)
997,544
The hybrid securities mentioned above do not have maturity date but are redeemable after 5 years from date
of issuance.
326
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327
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(5) Accumulated other comprehensive income
(6) Regulatory Reserve for Credit Loss
Changes in the accumulated other comprehensive income are as follows (Unit: Korean Won in millions):
Net gain (loss) on valuation of
financial assets at FVTOCI
Changes in capital due to equity
method
Gain (loss) on foreign currency
translation of foreign operations
Remeasurement gain (loss) related
to defined benefit plan
Gain (loss) on valuation of
derivatives designated as cash
flow hedges
Capital related to noncurrent assets
held for sale
Total
Beginning
balance
Increase
(decrease) (*)
Reclassification
adjustments
Classified as
held for sale
Income tax
effect
Ending
balance
(71,914)
115,167
(30,643)
-
(22,443)
(9,833)
915
(3,171)
(152,987)
(152,486)
(270,977)
13,492
(5,692)
4,568
-
-
-
-
(1,691)
1,338
(2,609)
-
-
7,110
(298,363)
(3,710)
(261,195)
-
(262)
(1,386)
-
(500,655)
-
(22,430)
-
(30,643)
1,691
-
(465)
(18,432)
1,226
(572,160)
(*) The increase and decrease of financial asset valuation profit or loss at fair value through other comprehensive
income is a change due to the period evaluation and the reclassification adjustments amounting to 2,664 million
won are due to disposal of equity securities during the period.
For the year ended December 31, 2019
Beginning
balance
Increase
(decrease) (*)
Reclassification
adjustments
Income tax
effect
Ending
balance
(87,182)
(24,180)
43,021
(3,573)
(71,914)
302
(244,735)
(1,420)
96,157
(236,726)
(48,244)
-
-
-
2,033
915
(4,409)
(152,987)
13,993
(270,977)
Net gain (loss) on valuation of
financial assets at FVTOCI
Changes in capital due to equity
method
Gain (loss) on foreign currency
translation of foreign operations
Remeasurement gain (loss) related
to defined benefit plan
Gain (loss) on valuation of
derivatives designated as cash
flow hedges
Total
In accordance with Article 26 ~ 28 of the Financial holding company Supervision Regulations, the Group
calculates and discloses the regulatory reserve for credit loss.
1) Balance of the regulatory reserve for credit loss
Balance of the planned regulatory reserve for credit loss is as follows (Unit: Korean Won in millions):
Beginning balance
Planned provision of regulatory reserve (reversal) for credit
loss
Ending balance
December 31,
2020
2,547,547
20,820
2,568,367
December 31,
2019
2,356,246
191,301
2,547,547
2) Provision of regulatory reserve for credit loss, adjusted income after the provision of regulatory
reserve and others
Planned reserves provided, adjusted net income after the planned reserves provided and adjusted EPS
after the planned reserves provided are as follows (Unit: Korean Won in millions, except for EPS
amount):
Net income before regulatory reserve
Provision of regulatory reserve (reversal) for credit loss
Adjusted net income after the provision of regulatory reserve
Dividends to hybrid securities
Adjusted net income after regulatory reserve and dividends to
hybrid securities
Adjusted EPS after regulatory reserve and the dividends to
hybrid securities (Unit: Korean Won)
For the years ended December 31
2020
1,515,249
20,820
1,494,429
(48,915)
2019
2,037,596
191,301
1,846,295
(4,362)
1,445,514
1,841,933
2,002
2,725
(3,869)
(572,210)
(32,719)
(10,406)
31,756
74,777
(860)
7,184
(5,692)
(500,655)
(7) Treasury stock
(*) The increase and decrease of financial asset valuation profit or loss at fair value through other comprehensive
income is a change due to the period evaluation and the reclassification adjustments amounting to 29,368 million
won are due to disposal of equity securities during the period.
Details of treasury stocks are as follows (Unit: Shares, Korean Won in millions):
December 31, 2020
December 31, 2019
Number of shares
Book value
Number of shares
Book value
2
-
-
2
-
-
-
-
2,728,774
57,721,387
(60,450,159)
2
34,113
799,886
(833,999)
-
Beginning balance
Acquisition (*)
Disposal
Ending balance
29. DIVIDENDS
The dividend and total dividend per share for the fiscal year ending December 31, 2019 were 700 won and
505,587 million won, respectively, approved at the regular shareholders' meeting held on March 25, 2020 and
paid in April 2020.
A dividend in respect of the year ended December 31, 2020, of 360 won per share, amounting to a total
dividend of 260,017 million won, is to be proposed to shareholders at the annual general meeting on March
26, 2021. These financial statements do not reflect this dividend payable.
328
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329
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
30. NET INTEREST INCOME
(2) Details of fees and commissions expense incurred are as follows (Unit: Korean Won in millions):
(1) Interest income recognized is as follows (Unit: Korean Won in millions):
Financial assets at FVTPL
Financial assets at FVTOCI
Financial assets at amortized cost:
Securities at amortized cost
Loans and other financial assets at amortized cost:
Interest on due from banks
Interest on loans
Interest of other receivables
Subtotal
Total
For the years ended December 31
2019
2020
48,612
437,527
382,988
53,586
8,570,173
30,967
8,654,726
9,523,853
50,619
474,751
436,340
141,330
9,443,740
29,990
9,615,060
10,576,770
(2) Details of interest expense recognized are as follows (Unit: Korean Won in millions):
Interest on deposits due to customers
Interest on borrowings
Interest on debentures
Other interest expense
Interest on lease liabilities
Total
For the years ended December 31
2019
2020
2,486,523
269,985
722,551
36,964
9,318
3,525,341
3,424,441
383,213
777,322
89,002
9,086
4,683,064
31. NET FEES AND COMMISSIONS INCOME
(1) Details of fees and commissions income recognized are as follows (Unit: Korean Won in millions):
For the years ended December 31
2019
2020
Fees and commissions paid
Credit card commission
Brokerage commission
Others
Total
32. DIVIDEND INCOME
246,824
424,316
551
8,286
679,977
(1) Details of dividend income recognized are as follows (Unit: Korean Won in millions):
Dividend income related to financial assets at FVTPL
Dividend income related to financial assets at
FVTOCI
Total
120,158
18,385
138,543
For the years ended December 31
2019
2020
189,789
407,689
775
8,445
606,698
86,979
20,980
107,959
(2) Details of dividends related to financial assets at FVTOCI are as follows (Unit: Korean Won in
millions):
Dividend income recognized from assets held:
Equity securities
For the years ended December 31
2019
2020
18,385
20,980
33. NET GAIN OR LOSS ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR
LOSS MANDATORILY MEASURED AT FAIR VALUE
For the years ended December 31
2020
2019
(1) Details of gains or losses related to net gain or loss on financial instruments at FVTPL are as follows
(Unit: Korean Won in millions):
Fees and commission received for brokerage
Fees and commission received related to credit
Fees and commission received for electronic finance
Fees and commission received on foreign exchange handling
Fees and commission received on foreign exchange
Fees and commission received for guarantee
Fees and commission received on credit card
Fees and commission received on securities business
Fees and commission from trust management
Fees and commission received on credit information
Fees and commission received related to lease
Other fees
Total
162,653
195,391
125,107
55,984
69,017
74,647
507,852
79,606
160,564
13,254
84,164
165,777
1,694,016
156,578
189,597
137,289
61,756
92,408
71,106
548,580
113,346
180,290
12,626
4,753
140,997
1,709,326
Gain on financial instruments at fair value through
profit or loss measured at fair value
Gain (loss) on financial instruments at fair value
through profit or loss designated as upon initial
recognition
Total
For the years ended December 31
2019
2020
422,374
58,692
(665)
421,709
(33,237)
25,455
330
- 147 -
- 148 -
331
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
34. NET GAIN OR LOSS ON FINANCIAL ASSETS AT FVTOCI
Details of net gain or loss on financial assets at FVTOCI recognized are as follows (Unit: Korean Won in
millions) :
Gain on redemption of securities
Gain on transactions of securities
Total
For the years ended December 31
2020
2019
(57)
24,195
24,138
15
11,000
11,015
35. REVERSAL OF (PROVISION FOR) IMPAIRMENT LOSSES DUE TO CREDIT LOSS
Reversal of (provision for) impairment losses due to credit loss are as follows (Unit: Korean Won in
millions):
Impairment loss due to credit loss on
financial assets measured at FVTOCI
Reversal of impairment loss due to credit loss on securities
at amortized cost
Provision for impairment loss due to credit loss on loan
and other financial assets at amortized cost
Reversal of provision on guarantee
Reversal of (provision for) unused loan commitment
Total
For the years ended December 31
2020
2019
(1,529)
934
(792,250)
18,348
(9,874)
(784,371)
(3,297)
1,415
(385,758)
4,352
9,044
(374,244)
(2) Details of net gain or loss on financial instruments at fair value through profit or loss measured at fair
value and financial instruments held for trading are as follows (Unit: Korean Won in millions):
Financial assets
at FVTPL
Securities
Gain on transactions and
Loans
Other financial
assets
Derivatives
(Held for
trading)
Interest rates
derivatives
Currency
valuation
Loss on transactions and
valuation
Sub-total
Gain on transactions and
valuation
Loss on transactions and
valuation
Sub-total
Gain on transactions and
valuation
Loss on transactions and
valuation
Sub-total
Sub-total
Gain on transactions and
valuation
Loss on transactions and
valuation
Sub-total
Gain on transactions and
For the years ended December 31
2020
2019
142,551
186,394
(122,506)
20,045
(80,306)
106,088
15,299
(8,087)
7,212
10,902
(10,257)
645
27,902
1,556
(21)
1,535
3,963
(3,570)
393
108,016
1,727,585
1,507,254
(1,998,824)
(271,239)
(1,615,833)
(108,579)
derivatives
valuation
12,562,354
6,872,513
Loss on transactions and
valuation
Sub-total
(11,906,353)
656,001
(6,855,447)
17,066
Equity derivatives Gain on transactions and
valuation
Loss on transactions and
valuation
Sub-total
1,835,497
839,196
(1,825,372)
10,125
(796,336)
42,860
Other derivatives Gain on transactions and
valuation
Loss on transactions and
valuation
Sub-total
Sub-total
Net, total
-
695
(415)
(415)
394,472
422,374
(1,366)
(671)
(49,324)
58,692
(3) Details of net gain (loss) on financial instruments at fair value through profit or loss designated as upon
initial recognition and Losses on financial instruments designated as at fair value through profit or loss
are as follows (Unit: Korean Won in millions):
Loss on equity-linked securities
For the years ended December 31
2020
2019
(665)
(33,237)
332
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- 150 -
333
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
36. GENERAL AND ADMINISTRATIVE EXPENSES AND OTHER NET OPERATING INCOME
(4) Share-based payment
(EXPENSES)
(1) Details of general and administrative expenses recognized are as follows (Unit: Korean Won in
millions):
Employee benefits
Short-term
employee
benefits
Salaries
Employee fringe
benefits
Share based payment
Retirement benefit service costs
Termination
Subtotal
Depreciation and amortization
Other general and
administrative
expenses
Rent
Taxes and public dues
Service charges
Computer and IT related
Telephone and communication
Operating promotion
Advertising
Printing
Traveling
Supplies
Insurance premium
Reimbursement
Maintenance
Water, light, and heating
Vehicle maintenance
Others
Sub-total
Total
For the years ended December 31
2020
2019
1,638,341
1,584,791
506,048
7,495
178,455
202,259
2,532,598
520,969
78,707
129,904
244,825
108,810
72,711
45,891
94,880
6,954
7,263
12,127
10,805
16,500
18,367
14,993
10,225
29,652
902,614
3,956,181
475,238
6,328
168,423
156,441
2,391,221
481,176
85,705
137,137
235,117
93,573
70,220
45,594
85,887
7,845
13,255
7,736
9,668
23,577
18,495
15,272
10,564
34,035
893,680
3,766,077
(2) Details of other operating income recognized are as follows (Unit: Korean Won in millions):
Gain on transactions of foreign exchange
Gain related to derivatives (Designated for hedging)
Gain on fair value hedged items
Others
Total
For the years ended December 31
2020
2019
758,347
67,395
9,646
63,702
899,090
602,115
126,651
231
45,706
774,703
(3) Details of other operating expenses recognized are as follows (Unit: Korean Won in millions):
Losses on transactions of foreign exchange
KDIC deposit insurance premium
Contribution to miscellaneous funds
Losses related to derivatives (Designated for hedging)
Losses on fair value hedged items
Others (*)
Total
For the years ended December 31
2020
2019
679,350
371,054
327,911
82,746
68,508
189,959
1,719,528
192,331
333,600
317,667
3,686
86,214
143,786
1,077,284
(*) Other expense includes such expenses amounting to 11,890 million won and 22,317 million won, respectively,
of intangible asset amortization expense for the years ended December 31, 2020 and 2019, respectively.
334
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Details of performance condition share-based payment granted to executives as of December 31, 2020 and
2019 are as follows.
1) Performance condition share-based payment
Subject to
Type of payment
Vesting period
Date of payment
Fair value (*1)
Valuation method
Expected dividend rate
Expected maturity date
Number of shares
remaining
Number of shares granted
(*2)
Subject to
Type of payment
Vesting period
Date of payment
Fair value (*1)
Valuation method
Expected dividend rate
Expected maturity date
Number of shares
remaining
Number of shares granted
(*2)
As of December 31, 2020
As of December 31, 2019
As of December 31, 2020
As of December 31, 2019
As of December 31, 2020
As of December 31, 2019
As of December 31, 2020
As of December 31, 2019
Shares granted for the year 2019
Cash-settled
January 1, 2019 ~ December 31, 2022
2023-01-01
9,162 Won
Black-Scholes Model
4.13%
2 years
602,474 shares
602,474 shares
602,474 shares
602,474 shares
Shares granted for the year 2020
Cash-settled
January 1, 2020 ~ December 31, 2023
2024-01-01
8,792 Won
Black-Scholes Model
4.13%
3 years
944,343 shares
-
944,343 shares
-
(*1) As the amount of payment varies according to the base price (the arithmetic average of the weighted average stock
price of transactions in the past one week, the past one month, and the past two months) at the date of payment, the
fair value is calculated to measure the liability according to the Black Shawls model based on the base price at the
time of each settlement.
(*2) It is a system in which the amount of stock payable is determined at the beginning, and the payment rate is determined
in accordance with the degree of achievement of the pre-set performance target. Performance is evaluated by long-
term performance indicators such as relative shareholder return, net profit, return on equity (ROE), non-performing
loan ratio, and job performance.
2) The Group accounts for performance condition share-based payments according to the cash-settled
method and the fair value of the liabilities is reflected in the compensation costs by re-measuring
every closing period. As of December 31, 2020 and 2019, the book value of the liabilities related to
the performance condition share-based payments recognized by the Group amounts to 13,823 million
won and 6,328 million won, respectively.
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335
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
37. NON-OPERATING INCOME (EXPENSES)
38. INCOME TAX EXPENSE
(1) Details of gains or losses on valuation of investments in joint ventures and associates are as follows
(1) Details of income tax expenses are as follows (Unit: Korean Won in millions):
(Unit: Korean Won in millions):
Gains on valuation of investments in joint ventures and associates
Losses on valuation of investments in joint ventures and associates
Impairment losses of investments in joint ventures and associates
Total
For the years ended December 31
2020
2019
125,602
(23,283)
(1,242)
101,077
103,775
(16,144)
(3,634)
83,997
(2) Details of other non-operating income and expenses recognized are as follows (Unit: Korean Won in
millions):
Other non-operating incomes
Other non-operating expenses
Total
For the years ended December 31
2020
133,195
(313,415)
(180,220)
2019
68,459
(229,383)
(160,924)
(3) Details of other non-operating income recognized are as follows (Unit: Korean Won in millions):
Rental fee income
Gains on disposal of investments in joint ventures and
associates
Gains on disposal of premises and equipment, intangible
assets and other assets
Reversal of impairment loss of premises and equipment,
intangible assets and other assets
Others (*)
Total
For the years ended December 31
2020
15,190
3,470
9,715
172
104,648
133,195
2019
10,106
-
1,632
103
56,618
68,459
(*) Included 67,427 million won of profit from bargain purchase for the year ended December 31,2020.
(4) Details of other non-operating expenses recognized are as follows (Unit: Korean Won in millions):
Depreciation on investment properties
Operating expenses on investment properties
Losses on disposal of premises and equipment, intangible
assets and other assets
Impairment losses of premises and equipment, intangible
assets and other assets
Donation
Others (*)
Total
For the years ended December 31
2020
2019
2,689
762
2,717
8,763
44,504
253,980
313,415
2,225
834
3,433
28,295
62,545
132,051
229,383
(*) Included 224,427 million won of other special losses related to other provisions for the year ended
December 31,2020.
Current tax expense:
Current tax expense with respect to the current period
Adjustments recognized in the current period in relation
to the tax expense of prior periods
Sub-total
Deferred tax expense
Change in deferred tax assets (liabilities) due to
temporary differences
Income tax expense directly attributable to equity
Income tax expense
Sub-total
For the years ended December 31
2020
2019
501,223
4,914
506,137
(1,702)
(18,433)
(20,135)
486,002
612,680
(65,227)
547,453
130,816
7,184
138,000
685,453
(2)
Income tax expense reconciled to net income before income tax expense is as follows (Unit: Korean
Won in millions):
Net income before income tax expense
Tax calculated at statutory tax rate (*)
Adjustments:
Effect of income that is exempt from taxation
Effect of expenses that are not deductible in determining
taxable income
Adjustments recognized in the current period in relation
to the current tax of prior periods
Others
Income tax expense
Effective tax rate
Sub-total
For the years ended December 31
2020
2,001,251
514,456
2019
2,723,049
738,476
(42,440)
(61,730)
19,451
31,549
4,914
(10,379)
(28,454)
486,002
24.3%
(65,227)
42,385
(53,023)
685,453
25.2%
(*) The applicable income tax rate: 1) 11% for taxable income below 200 million Won, 2) 22% for above 200
million Won and below 20 billion Won, 3) 24.2% for above 20 billion Won and below 300 billion Won, 4)
27.5% for above 300 billion Won.
336
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(3) Changes in cumulative temporary differences for the years ended Deferred 31, 2019 and 2018, are as
follows (Unit: Korean Won in millions):
For the year ended December 31, 2020
Beginning balance
Business
combination
Recognized as
income (expense)
Recognized as other
comprehensive income
(expense) (*2)
Ending
Balance
278,352
2,243
19,121
(23,221)
276,495
-
21,499
1,385
33,597
10,713
(75,412)
(66,384)
(52,711)
6,893
675
(4,392)
2,201
-
(162,442)
(14,131)
396,302
7,923
(381,776)
7,915
88,456
(144,684)
(94,778)
(6,369)
3,441
-
(12,678)
(21,087)
(67,423)
4,548
4,015
1,328
6,377
41,186
(36,858)
(1,871)
(3,283)
31,494
20,133
(192)
-
-
-
-
(142,352)
(66,228)
(46,495)
8,221
(170,196)
(3,404)
442,007
97
-
-
6,904
(18,431)
(424,906)
9,485
85,173
(118,964)
(114,163)
Gain (loss) on financial
assets
Gain on valuation using the
equity method of
accounting
Gain (loss) on valuation of
derivatives
Accrued income
Provision for loan losses
Loan and receivables written
off
Loan origination costs and
fees
Defined benefit liability
Deposits with employee
retirement insurance trust
Provision for guarantee
Other provision
Others (*1)
Net deferred tax assets
(*1) Among the deferred tax assets and liabilities classified as ‘Others,’ the deferred tax asset arising from unused tax
losses amounts to 24,059 million won.
For the year ended December 31, 2019
Beginning balance
Business
combination
Recognized as
income (expense)
Recognized as other
comprehensive income
(expense) (*2)
Ending
Balance
372,346
1,360
(91,781)
(3,573)
278,352
28,354
(27,507)
(55,846)
(52,345)
6,672
(154,431)
360,087
(318,330)
11,374
75,194
(204,083)
41,485
90
6
(52)
-
-
-
1,131
(1,131)
-
76
(6,927)
(5,447)
(17,648)
(48,217)
(10,486)
(366)
221
(8,011)
21,234
(62,458)
(3,459)
10,958
72,013
(138,000)
(83)
306
-
-
-
-
10,713
(75,412)
(66,384)
(52,711)
6,893
(162,442)
13,850
396,302
143
-
2,228
(5,687)
7,184
(381,776)
7,915
88,456
(144,684)
(94,778)
Gain (loss) on financial
assets
Gain on valuation using the
equity method of
accounting
Gain (loss) on valuation of
derivatives
Accrued income
Provision for loan losses
Loan and receivables written
off
Loan origination costs and
fees
Defined benefit liability
Deposits with employee
retirement insurance trust
Provision for guarantee
Other provision
Others (*1)
Net deferred tax assets
(*1) Among the deferred tax assets and liabilities classified as ‘Others,’ the deferred tax asset arising from unused tax
losses amounts to 21,656 million won.
(*2) Includes 2,737 million won presented on non-controlling interests.
(4) Unrealizable temporary differences are as follows (Unit: Korean Won in millions):
Deductible temporary differences
Tax loss carry forward
Taxable temporary differences
Total
December 31, 2020
December 31, 2019
327,139
97,898
(10,409,344)
(9,984,307)
171,714
41,546
(8,024,406)
(7,811,146)
No deferred income tax asset has been recognized for the deductible temporary difference of 322,083 million
won associated with investments in subsidiaries and associates as of December 31, 2020, because it is not
probable that the temporary differences will be reversed in the foreseeable future. 5,056 million won
associated with others, respectively, as of December 31, 2020, due to the uncertainty that these will be
realized in the future.
No deferred income tax liability has been recognized for the taxable temporary difference of 10,409,344
million won associated with investment in subsidiaries and associates as of December 31, 2020, due to the
following reasons:
- The Group is able to control the timing of the reversal of the temporary difference.
- It is probable that the temporary difference will not be reversed in the foreseeable future.
As of December 31, 2020, the expected extinctive date of tax loss carry forward that are not recognized as
deferred tax assets are as follows (Unit: Korean Won in millions):
Tax loss carry forward
29,979
14,341
34,470
1 year or less
1 – 2 years
2 – 3 years
More than 3 years
19,108
(5) Details of accumulated deferred tax charged directly to other equity are as follows (Unit: Korean Won in
millions):
Gain on valuation of financial assets at FVTOCI
Gain on valuation of equity method investments
Gain on foreign currency translation of foreign
operations
Remeasurements of the net defined benefit liability
Gain on derivatives designated as cash flow hedge
Total
December 31, 2020
December 31, 2019
27,849
1,748
4,628
3,133
10,883
101,128
556
120,328
3,774
102,120
280
135,771
(6) Current tax assets and liabilities are as follows (Unit: Korean Won in millions):
Current tax assets
Current tax liabilities
December 31, 2020
75,655
370,718
December 31, 2019
47,367
182,690
338
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339
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
39. EARNINGS PER SHARE (“EPS”)
(1) Basic EPS is calculated by dividing net income attributable to common shareholders by weighted-average
number of common shares outstanding (Unit: Korean Won in millions, except for EPS and number of
shares):
For the years ended December 31
2019
2020
Net income attributable to common shareholders
Dividends to hybrid securities
Net income attributable to common shareholders
Weighted average number of common shares
outstanding (Unit: million shares)
Basic EPS (Unit: Korean Won)
1,307,266
(48,915)
1,258,351
722
1,742
1,872,207
(4,362)
1,867,845
685
2,727
(2) The weighted average number of common shares outstanding is as follows (Unit: number of shares,
days):
For the year ended December 31, 2020
Period
Number of
shares
Dates
(Unit:
Day)
Accumulated number
of shares outstanding
during period
Common shares issued at the
beginning of the period
Treasury stock
2020-01-01 ~ 2020-12-31
2020-01-01 ~ 2020-12-31
722,267,683
(2)
366
366
Sub-total (①)
Weighted average number of common shares outstanding (②=(①/366)
264,349,971,978
(732)
264,349,971,246
722,267,681
For the year ended December 31, 2019
Period
Number of
shares
Dates
(Unit:
Day)
Accumulated number
of shares outstanding
during period
Common shares issued at the
beginning of the period
Purchase of treasury stock
Disposal of treasury stock
Purchase of treasury stock
Disposal of treasury stock (*)
Disposal of treasury stock (*)
Purchase of treasury stock
2019-01-01 ~ 2019-12-31
2019-01-08 ~ 2019-12-31
2019-03-22 ~ 2019-12-31
2019-08-26 ~ 2019-12-31
2019-09-26 ~ 2019-12-31
2019-11-22 ~ 2019-12-31
2019-12-13 ~ 2019-12-31
673,271,226
(11,453,702)
18,346,782
(1)
28,890,707
13,212,670
(1)
365
358
285
128
97
40
19
Sub-total (①)
Weighted average number of common shares outstanding (②=(①/365)
245,743,997,490
(4,100,425,316)
5,228,832,870
(128)
2,802,398,579
528,506,800
(19)
250,203,310,276
685,488,521
(*) In September 2019, Woori Bank disposed of 42,103,377 shares acquired through comprehensive exchange of
shares in Woori Card Co., Ltd. and its parent company Woori Financial Group Inc.
Diluted EPS is equal to basic EPS because there is no dilution effect for the years ended December 31, 2020
and 2019.
40. CONTINGENT LIABILITIES AND COMMITMENTS
(1) Details of guarantees are as follows (Unit: Korean Won in millions):
Confirmed guarantees
Guarantee for loans
Acceptances
Guarantees in acceptances of imported goods
Other confirmed guarantees
Sub-total
Unconfirmed guarantees
Local letters of credit
Letters of credit
Other unconfirmed guarantees
Sub-total
Commercial paper purchase commitments and others
Total
December 31, 2020
December 31, 2019
103,229
602,014
78,395
6,491,608
7,275,246
187,146
3,025,923
403,652
3,616,721
917,489
11,809,456
89,699
391,688
224,746
6,982,889
7,689,022
193,096
3,081,390
771,378
4,045,864
884,031
12,618,917
(2) Details of unused loan commitments and others are as follows (Unit: Korean Won in millions):
Loan commitments
Other commitments (*)
December 31, 2020
December 31, 2019
112,088,680
7,827,774
103,651,674
5,993,608
(*) As of December 31, 2020 and 2019, the amount of unsecured bills (purchase note sales) and discounts on
electronic short-term bond sales (purchase) are 2,894,688 million won and 2,582,274 million won, respectively.
(3) Litigation case
Legal cases where the Group is involved are as follows (Unit: Korean Won in millions):
Number of cases (*)
Amount of litigation
Provisions for litigations
December 31, 2020
As plaintiff
138 cases
As defendant
460 cases
413,852
413,744
24,336
December 31, 2019
As plaintiff
As defendant
119 cases
291,880
415 cases
391,362
27,029
(*) The number of lawsuits as of December 31, 2020 and 2019 do not include fraud lawsuits, etc. and those
lawsuits that are filed only to extend the statute of limitation.
340
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341
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(4)
Other commitments
41. RELATED PARTY TRANSACTIONS
1) The Group decided to enter into a stock sales agreement with a major shareholder of Woori Asset
Trust Co., Ltd. (formerly, Kukje Asset Trust Co., Ltd.) to acquire 44.5% of interest (58.6% of
voting rights) in July, 2019, and to acquire additional 21.3% of interest (28.0% of voting rights)
after a certain period. As a result, the Group acquired the interest of the first sales agreement in
December 2019 and is planning to acquire the interest of the second sales agreement after a certain
period. In regard to this acquisition, the Group recognized 127,335 million won as other financial
liabilities for the second sales agreement.
2) Lime Asset Management Co., Ltd. announced the suspension of redemption of many funds in
operation in October 2019. The Group's total amount of sales of fund under management of Lime
Asset Management Co., Ltd.'s subject to redemption suspension is 1,348 accounts and 270.3 billion
won at the end of December 2020. In December 2020, Lime Asset Management Co., Ltd.'s
business registration was revoked, and funds subject to redemption suspension were transferred to
Wellbridge Asset Management Co., Ltd., which was jointly established by distributors. The
Financial Supervisory Dispute Meditation Committee was held on February 23, 2021 for
incomplete sales of vendors, and the obligation to compensate investors for some of the losses may
be changed by the Dispute Mediation Committee’s decision and the Board’s approval.
3) As of December 31, 2020, Woori Asset Trust Co., Ltd., a subsidiary, has agreed to carry out
construction completion obligations for 44 constructions, which includes the construction of
residential and commercial complexes in Busan (U-dong, Haeundae-gu). Land Trust responsible
for Construction and Management is a trust that bears the obligation to fulfill the responsibility of
the constructor and to compensate the loan financial institution for damages if the company fails to
fulfill the construction completion obligation. As of December 31, 2020, the total PF loan amount
of PF loan institutions invested in the project of the Land Trust responsible for Construction and
Management is 1,389,356 million won. Although additional losses may occur in relation to the
construction completion obligations, the financial statements at December 31, 2020 do not reflect
these effects since losses are unlikely and the amount cannot be estimated reliably.
Related parties of the Group as of December 31, 2020 and 2019, and assets and liabilities recognized,
guarantees and commitments, major transactions with related parties and compensation to key management
for the years ended December 31, 2020 and 2019 are as follows. Please refer to Note 13 for the details of
joint ventures and associates.
(1) Assets and liabilities from transactions with related parties are as follows (Unit: Korean Won in millions):
Associates
W Service Networks Co.,
Related parties
Ltd.
Korea Credit Bureau Co.,
Ltd.
Korea Finance Security Co.,
Ltd.
Chin Hung International Inc.
LOTTE CARD Co. Ltd.
K BANK Co., Ltd.
Well to Sea No.3 Private
Equity Fund
Others (*1) (*2)
Account title
Loans
Loss allowance
Deposits due to customers
Accrued expenses
Other liabilities
Loans
Deposits due to customers
Other liabilities
Loans
Loss allowance
Deposits due to customers
Other liabilities
Loans
Loss allowance
Deposits due to customers
Other liabilities
Loans
Loss allowance
Other assets
Deposits due to customers
Other liabilities
Loans
Account receivables
Other assets
Loans
Loss allowance
Deposits due to customers
Other liabilities
Loans
Loss allowance
Other assets
Deposits due to customers
Other liabilities
December 31,
2020
December 31,
2019
21
-
2,183
6
459
1
2,311
5
3,440
(6)
1,927
1
257
(3)
8,715
171
7,500
(77)
12
2,697
113
104
26
2
-
-
4,997
-
-
-
651
5,831
5
23
(1)
1,881
6
429
3
26
-
1,860
(3)
1,371
-
244
(2)
5,381
321
7,500
(30)
-
2,726
-
141
24
4
4,490
(8)
714
47
84
(84)
338
5,577
172
(*1) Others include Smart Private Equity Fund No.2, IBK KIP Seongjang Dideemdol 1st Private Investment Limited
Partnership, Woori G IPO10 [FI_Bal][F]C(F), Woori G Senior Loan No.1, Woori G Egis Bond[FI][F](C(F)),
Woori G Clean Energy No.1, Woori Star50 Master Fund ClassC-F, Dongwoo C & C Co., Ltd., Woori Growth
Partnerships New Technology Private Equity Fund, Woori-Shinyoung Growth-Cap Private Equity Fund, Woori-
Q Corporate Restructuring Private Equity Fund, Woori High plus G.B. Securities Feeder Fund1(G.B.), Uri
Hanhwa Eureka Private Equity Fund, Japanese Hotel Real Estate Private Equity Fund 2, Partner One Value Up I
Private Equity Fund and etc., as of December 31, 2020.
(*2) Others include Saman Corporation, Woori-Shinyoung Growth-Cap Private Equity Fund, Uri Hanhwa Eureka
Private Equity Fund, Kyesan Engineering Co., Ltd. and DAEA SNC Co., Ltd. and etc., as of December 31, 2019.
(2) Gain or loss from transactions with related parties are as follows (Unit: Korean Won in millions):
342
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343
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Associates
W Service Network Co., Ltd.
Related parties
Korea Credit Bureau Co., Ltd.
Korea Finance Security Co., Ltd.
Chin Hung International Inc
LOTTE CARD Co., Ltd.
Account title
Other income
Interest expenses
Fees expenses
Reversal of allowance for
credit loss
Other expenses
Interest expenses
Fees expenses
Interest income
Interest expenses
Provisions for allowance
for credit loss
Other expenses
Interest expenses
Provision for (reversal of)
allowance for credit loss
Interest income
Fees income
Interest expenses
Provision for allowance
for credit loss
K BANK Co., Ltd.
Fees income
Well to Sea No.3 Private Equity
Fund
Interest income
Others (*1) (*2)
Interest expenses
Reversal of allowance for
credit loss
Fees income
Dividends income
Other income
Interest expenses
Reversal of allowance for
credit loss
For the year December 31
2020
2019
32
13
525
(4)
2,174
5
3,155
70
3
3
100
19
(145)
311
2,748
68
171
1,763
1,883
5
(55)
2,677
52
16
28
-
32
20
448
(3)
1,423
29
2,608
-
9
8
112
35
44
213
593
53
30
1,468
1,774
11
(18)
1,281
-
17
55
(5)
(*1) Others include Smart Private Equity Fund No.2, IBK KIP Seongjang Dideemdol 1st Private Investment
Limited Partnership, AJU TAERIM 1st Fund, Woori G IPO10 [FI_Bal][F]C(F),Woori G Senior Loan No.1,
Woori G Egis Bond[FI][F](C(F)), Woori G Clean Energy No.1, Woori Star50 Master Fund ClassC-F, Saman
Corporation, Woori Growth Partnerships New Technology Private Equity Fund, Woori-Shinyoung Growth-
Cap Private Equity Fund, Woori-Q Corporate Restructuring Private Equity Fund, Woori High plus G.B.
Securities Feeder Fund1(G.B.), Uri Hanhwa Eureka Private Equity Fund, Japanese Hotel Real Estate Private
Equity Fund 2, Partner One Value Up I Private Equity Fund, PCC-Woori LP Secondary Fund and etc., as
of December 31, 2020.
(*2) Others include Saman Corporation, Woori-Shinyoung Growth-Cap Private Equity Fund, Uri Hanhwa Eureka
Private Equity Fund, Kyesan Engineering Co., Ltd., DAEA SNC Co., Ltd. and etc, as of December 31, 2019.
(3) Major loan transactions with related parties for the years ended December 31, 2020 and 2019 are as
follows (Unit: Korean Won in millions):
Related parties
Associates W Service Network Co., Ltd.
Korea Credit Bureau Co., Ltd.
Korea Finance Security Co., Ltd.
Chin Hung International Inc
LOTTE CARD Co., Ltd.
K BANK Co., Ltd.
Well to Sea No. 3 Private Equity Fund
For the year ended December 31, 2020
Beginning
balance
Loan
23
3
1,860
244
7,500
141
4,490
337
17
2,133
2,575
-
1,942
-
Collection
339
19
553
2,562
-
1,979
4,490
Ending balance
(*)
21
1
3,440
257
7,500
104
-
(*) Payments that occurred for business reasons among related parties are excluded and net increase or decrease
was used for limited credit loan.
Related parties
Associates W Service Network Co., Ltd.
Korea Credit Bureau Co., Ltd.
Korea Finance Security Co., Ltd.
Chin Hung International Inc
LOTTE CARD Co., Ltd.
K BANK Co., Ltd.
Well to Sea No. 3 Private Equity Fund
For the year ended December 31, 2019
Beginning
balance
Loan
69
7
57
241
-
185
1,857
315
26
2,426
2,338
7,500
2,249
2,633
Collection
361
30
623
2,335
-
2,293
-
Ending balance
(*)
23
3
1,860
244
7,500
141
4,490
(*) Payments that occurred for business reasons among related parties are excluded and net increase or decrease
was used for limited credit loan.
(4) Details of changes in major deposits due to customers with related parties for the year December 31,
2020 and 2019 are as follows (Unit: Korean Won in millions):
Associates W Service Networks Co., Ltd
Related parties
Chin Hung International Inc
Partner One Value Up I Private Equity
Fund
Korea Credit Bureau Co., Ltd.
For the year ended December 31, 2020
Beginning
balance
1,180
400
1,150
-
Increase
Decrease
Ending
balance (*)
1,180
-
1,737
1,000
1,180
400
2,024
-
1,180
-
863
1,000
(*) Details of payment between related parties, demand deposit due to customers and etc. are excluded.
Associates
Related parties
Saman Corporation (*2)
W Service Networks Co., Ltd
Chin Hung International Inc
Partner One Value Up I Private Equity
Fund
Korea Credit Bureau Co., Ltd.
Korea Finance Security Co., Ltd.
For the year ended December 31, 2019
Beginning
balance
Increase
2,436
1,180
765
1,403
6,000
535
86
1,460
400
1,617
-
25
Decrease
-
1,460
765
Ending
balance (*1)
2,522
1,180
400
1,870
6,000
560
1,150
-
-
(*1) Details of payment between related parties, demand deposit due to customers and etc. are excluded.
(*2) Excluded from the related parties due to the loss of significant influence for the year ended December 31,
2020.
(5) There are no major borrowing transactions with related parties for the years ended December 31, 2020
and 2019.
344
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(6) Guarantees provided to the related parties are as follows (Unit: Korean Won in millions):
42. TRUST ACCOUNTS
Warrantee
Korea Finance Security Co., Ltd.
Korea Credit Bureau Co., Ltd.
W Service Network Co., Ltd.
Chin Hung International Inc.
K BANK Co., Ltd.
Well to Sea No.3 Private Equity Fund
LOTTE CARD Co. Ltd.
December 31, 2020
820
34
179
16,167
196
-
500,000
December 31, 2019
400
32
177
32,055
159
210,510
150,000
Warranty
Unused loan commitment
Unused loan commitment
Unused loan commitment
Unused loan commitment
Unused loan commitment
Unused loan commitment
Unused loan commitment
As of December 31, 2020 and 2019, the recognized payment guarantee provisions are 284 million won
and 384 million won, respectively, in relation to the guarantees provided to the related parties above.
(7) Amount of commitments with the related parties
Warrantee
December 31, 2020 December 31, 2019
-
584,377
Warranty
Open interest
Well to Sea No.3 Private Equity Fund
Together-Korea Government Private Pool
Private Securities Investment Trust
No.3
Woori-Q Corporate Restructuring Private
Equity Fund
PCC-Woori LP Secondary Fund
Union Technology Finance Investment
Association
IBK KIP Seongjang Dideemdol 1st
Private Investment Limited Partnership
Genesis Environmental Energy Company
1st Private Equity Fund
Crevisse Raim Impact 1st Startup Venture
Specialist Private Equity Fund
Woori-Shinyoung Growth-Cap Private
Equity Fund I
Woori G Senior Loan No.1
JC Assurance No.2 Private Equity Fund
Woori Seoul Beltway Private Special
Asset Fund
Woori G Clean Energy No.1
990,000
-
Open interest
36,355
2,525
10,500
9,704
916
550
12,799
53,041
1,650
41,393
7,485
53,372
7,575
Open interest
Open interest
-
Open interest
15,424
Open interest
-
625
39,335
-
-
43,402
-
Open interest
Open interest
Open interest
Open interest
Open interest
Open interest
Open interest
(1) Trust accounts of the Bank are as follows (Unit: Korean Won in millions):
Total assets
Trust accounts
December 31, 2020
64,317,167
December 31, 2019
60,288,399
Operating income
For the years ended December 31
2020
2019
886,210
1,118,746
(2) Receivables and payables between the Bank and trust accounts are as follows (Unit: Korean Won in
millions):
Receivables:
Trust fees receivables
Payables:
Deposits due to customers
Borrowings from trust accounts
Total
December 31, 2020
December 31, 2019
33,761
353,598
1,639,869
1,993,467
31,533
392,453
2,730,806
3,123,259
(3) Significant transactions between the Bank and trust accounts are as follows (Unit: Korean Won in
millions):
Revenue:
Trust fees
Termination fees
Expense:
Total
Interest expenses on deposits due to
customers
Interest expenses on borrowings from trust
accounts
Total
For the years ended December 31
2019
2020
86,196
1,430
87,626
1,502
16,010
17,512
171,072
488
171,560
6,684
40,489
47,173
(8) Compensation for key management is as follows (Unit: Korean Won in millions):
Short-term employee salaries
Retirement benefit service costs
Share-based compensation
Total
For the years ended December 31
2019
2020
22,778
910
3,519
27,207
13,427
783
2,494
16,704
Major management shall be executives and outside directors of Woori Financial Group and major
subsidiaries, and includes the CEO of other subsidiaries. Outstanding assets from transactions with key
management amount to 3,888 million won and 2,414 million won, as of December 31, 2020 and 2019
respectively and with respect to the assets, the Group has not recognized any allowance nor related
impairment loss due to credit losses. Also, liabilities from transaction with key management amount to
11,155 million won and 6,543 million won, respectively, as of December 31, 2020 and 2019,
346
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(4) Principal guaranteed trusts and principal and interest guaranteed trusts are as follows;
1) The carrying value of principal guaranteed trusts and principal and interest guaranteed trusts are as
follows (Unit: Korean Won in millions):
December 31, 2020
December 31, 2019
Partial principal guaranteed trusts
Personal trust
Corporate trust
Deposit purpose
Sub-total
Principal guaranteed trusts
Old-age pension trusts
Personal pension trusts
Pension trusts
Retirement trusts
New personal pension trusts
New old-age pension trusts
Sub-total
Principal and interest guaranteed trusts
Development trusts
Unspecified money trusts
Sub-total
Total
9,179
625
1,596
11,400
3,112
505,762
813,323
29,528
7,671
1,297
1,360,693
19
349
368
1,372,461
9,430
630
1,651
11,711
3,298
516,913
824,735
34,374
7,807
1,742
1,388,869
19
871
890
1,401,470
2) The amounts that the Bank must pay by the operating results of the principal guaranteed trusts or
the principal and interest guaranteed trusts are as follows (Unit: Korean Won in millions):
43. LEASES
(1) Lessor
1) Finance lease
① The total investment in finance lease and the present value of the minimum lease payments to
be recovered are as follows: (Unit: Korean Won in millions):
December 31, 2020
Within one year
After one year but within two years
After two years but within three years
After three years but within four years
After four years but within five years
After five years
Total
Total investment in lease
24,649
48,781
132,894
171,137
277,282
16
654,759
Net investment in lease
23,957
45,575
120,414
151,756
244,481
12
586,195
② The unrealized interest income of the finance lease as of December 31, 2020 is as follows.
(Unit: Korean Won in millions):
Total investment in lease
Net investment in lease
Present value of minimum lease payments
Present value of unguaranteed residual value
Unearned interest income
Unearned interest income
654,759
586,195
586,133
62
68,564
Liabilities for the account
(subsidy for Trust account adjustment)
16
35
① The details of operating lease assets as of December 31, 2020 are as follows: (Unit: Korean
December 31, 2020
December 31, 2019
2) Operating lease
Won in millions):
Acquisition cost
Accumulated depreciation
Net carrying value
Vehicles
1,507,156
(390,981)
1,116,175
② The details of changes in operating lease assets as of December 31, 2020 are as follows:
(Unit: Korean Won in millions):
Beginning balance
Acquisition
Disposal
Depreciation
Business combination
Others
Ending balance
Amount
-
118,256
(21,963)
(52,504)
1,071,111
1,275
1,116,175
348
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
③ The future lease payments to be received under the lease contracts are as follows (Unit:
Korean Won in millions):
44. BUSINESS COMBINATION
(1) General
Within one year
After one year but within two years
After two years but within three years
After three years but within four years
After four years but within five years
Total
Amount
240,005
223,074
156,859
80,174
24,992
725,104
④ There is no adjusted lease payments recognized as profit or loss for the year ended December
31, 2020.
(2) Lessee
1) The future lease payments under the lease contracts are as follows (Unit: Korean Won in millions):
Lease payments
Within one year
After one year but within five years
After five years
Total
December 31, 2020
December 31, 2019
173,885
200,844
34,787
409,516
161,251
232,985
40,698
434,934
2) Total cash outflows from lease are as follows (Unit: Korean Won in millions):
Total cash outflows from lease
For the years ended
December 31
2020
2019
207,305
220,163
3) Details of lease payments that are not included in the measurement of lease liabilities due to the fact
that they are short-term leases or leases for which the underlying asset is of low value are as follows
(Unit: Korean Won in millions):
Lease payments for short-term leases
Lease payments for which the underlying asset is of low
value
Total
For the years ended
December 31
2020
2019
1,760
751
2,511
1,964
332
2,296
(3) As mentioned in Note 2, the Group uses a practical expedient for rent concession as a direct
consequence of COVID-19. Accordingly, the amount recognized in profit or loss during the reporting
period is 20,602 million won, to reflect changes in lease payments arising from the rent concession.
The Group acquired substantial control over Aju Capital Co., Ltd. on October 20, 2020, and completed the
acquisition of 76.8% (excluding treasury stocks, 74.0% interest including treasury stocks) stake in Woori
Financial Capital Co., Ltd. (formerly Aju Capital Co., Ltd.) on December 10, 2020.The main reasons for the
business combination are to maximize synergy between the consolidated subsidiaries and to strengthen the
non-bank business portfolio.
The operating profit and net loss of Woori Financial Capital Co., Ltd., reflected in the consolidated statement
of comprehensive income for the three months after the date of obtaining substantial control(October 20,
2020), are 21,163 million won and 30,349 million won, respectively. Had Woori Financial Capital Co., Ltd.
been acquired from January 1, 2020, the consolidated statement of comprehensive income would have shown
operating profit and net income of Woori Financial Capital Co., Ltd. for 138,116 and 58,980 million won,
respectively.
(2) Identifiable net assets
Identified assets and liabilities as of the acquisition date are as follows (Unit: Korean Won in millions):
Amount
Assets
Cash and cash equivalents
Financial assets at FVTPL
Financial assets at amortized cost (*1)
Investment properties
Premises and equipment and right-of-
use assets
Intangible assets (*2)
Deferred tax assets
Other assets
Sub-total
Financial liabilities
Provisions
Deferred tax liabilities
Other liabilities
Sub-total
Liabilities
Fair value of net identifiable assets
259,275
575,569
6,489,669
10,557
7,367
8,681
6,676
1,103,542
8,461,336
7,559,535
21,129
27,762
48,327
7,656,753
804,583
(*1) The acquired financial assets at amortized cost were estimated at fair value. The contractual total of the financial
assets at amortized cost of Woori Financial Capital Co., Ltd. is 6,669,123 million won (including 4,531 million
won in financial lease receivables), and the contractual cash flows that are not expected to be recovered as of the
acquisition date are 179,454 million won. (including 710 million won in financial lease receivables)
(*2) As 61,396 million won of Woori Financial Capital Co., Ltd.'s goodwill recognized at the acquisition of Woori
Savings Bank is not an identifiable asset, it has been fully deducted. As the core deposits of Woori Savings Bank
are determined to be separately identifiable intangible assets, an additional 1,278 million won was recognized,
which was calculated by the fair value assessment through cost reduction method. The cost reduction method is to
evaluate the reduced capital raising cost discounted as present value by comparing the cost of financing through
deposits generated from stable customer relationships with the cost of financing through other sources.
If, within one year of the acquisition date, new information obtained about the facts and circumstances that
existed at the acquisition date requires the adjustment of the amounts recognized at the acquisition date, or
the recognition of additional provisions existing at the acquisition date, the accounting for the business
combination will be adjusted.
350
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
(3) Profit from bargain purchase
Recognized profit from bargain purchase as a result of business combination are as follows (Unit: Korean
Won in million):
Transfer price
Fair value of net identifiable asset
Non-controlling interest (*1)
Profit from bargain purchase (*2)
Amount
572,333
804,583
164,823
67,427
(*1) The Group measured the non-controlling interest in Woori Financial Capital acquired as of December 31, 2020 at
fair value.
(*2) Included in other non-operating income in the consolidated comprehensive income statement.
In the event of a business combination, the consideration transferred includes the premium paid to acquire
Woori Financial Capital Co., Ltd. In addition, the consideration paid for the business combination includes
expected synergies, revenue growth, and the amount related to future market growth.
The Group also acquired core deposit intangibles held by Woori Financial Savings Bank as part of the
acquisition of Woori Financial Capital Co., Ltd. It was recognized separately from goodwill because it met
the reparability criteria to meet the recognition requirements for intangible assets.
(4) Business combination cost
The Group incurred 1,071 million won, including legal fees and due diligence fees, in relation to the business
combination, and the amount was recognized as a fee expense in the consolidated statement of
comprehensive income of the Group.
(5) Net cash outflow due to business combination
Details of net cash outflows due to business combination are as follows (Unit: Korean Won in million):
Consideration paid in cash
Acquired cash and cash equivalents
Deduction in total
45. EVENTS AFTER THE REPORTING PERIOD
Amount
572,333
259,275
313,058
On March 5, 2021, the Group entered into a share purchase agreement to acquire 100% interests of Woori
Savings Bank (common stock 12,160,398 shares) from one of the subsidiaries, Woori Financial Capital Co.,
Ltd.
352
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GLOBAL NETWORK
(as of the end of Dec. 2020)
Woori Bank
Head Office
51, Sogong-ro (203, Hoehyeon-dong 1-ga), Jung-gu,
Seoul, 100-792, Korea
Phone: +82-2-2002-3000
Swift: HVBKKRSE
Overseas Branch
New York Agency
245, Park Ave. 43rd Floor, New York, NY 10167, USA
Phone: 1-212-949-1900
LA Br.
3360, West Olympic Blvd. Suite 300, LA, CA90019, USA
Phone: 1-213-620-0747~8
London Br.
9th Floor, 71 Fenchurch Street, London, EC3M 4BR,UK
Phone: 44-207-680-0680
Tokyo Br.
Shiodome City Center 10th Floor, 5-2 Higashi-Shimbashi
1-Chome, Minato-ku, Tokyo, 105-7110 Japan
Phone: 81-3-6891-5600
Hong Kong Br.
Suite 1401, Two Pacific Place, 88 Queensway,
Hongkong
Phone: 852-2521-8016
Singapore Br.
10 Marina Boulevard #13-05 MBFC Tower 2, Singapore
018983
Phone: 65-6422-2000
Bahrain Br.
P.O. Box 1151, 4th Floor, Entrance 1, Manama Centre
Building, Manama, Bahrain
Phone: 973-17-223503
Dhaka Br.
Suvastu Imam Square (1st & 4th Fl.) 65 Gulshan
Avenue, Dhaka, Bangladesh
Phone: 88-02-5881-3270~3
DEPZ Customer Service Center
Dhaka Export Processing Zone(Old Area), Ganakbari,
Ssvar, Dhaka-1349, Bangladesh
Phone: 880-2778-8030
Woori Bank Chittangong Sub-Branch
World Trade Center Chittagon(2nd Floor) Plopt No. 102-
103, Agrabad Commercial Area, Chittagong, Bangladesh
Phone: 880-931-728221~4
Woori Bank Uttara Sub-Branch
Paradise Tower(Ground Floor) Plot 11, Sector 3, Uttara
Model Town,Uttara, Dhaka 1230, Bangladesh
Phone: 880-2896-2125~6
Woori Bank Mirpur Sub-Branch
Padma Bhaban(First Floor), 1/9 Mirpur Road Pallabi,
Mirpur-12, Dhaka-1216, bangladesh
Phone: 880-2902-1061~2
Subsidiary
U.S.A
Woori Bank Narayanganj Branch
Adamjee Export Processing zone, Shiddhirganj,
Narayanganj-1431 Bangladesh
Phone: 880-2769-2031~34
Woori Bank Motijheel Sub-Branch
AA Tower, 23, Ground Floor, Motijheel C/A, Dhaka
Woori America Bank
330 5th Avenue New York, NY 10001, USA
Phone: 1-212-244-3000
Woori America Bank, Manhattan Br.
330 5th Avenue New York, NY 10001
Phone: 1-212-244-1500
Woori Bank Kawranbazar Sub-Branch
A.H.N Tower, Ground Floor, 13 Biponon C/A, Sonargaon
Road, Bagla Motor, Dhaka
Woori America Bank, Flushing Br.
136-88 39th Avenue Flushing New York, NY 11354, USA
Phone: 1-718-886-1988
Chittagong Customer Service Center
BEPZA Building, 1st floor of Zone Services Complex in
Chattogram EPZ(CEPZ)
Sydney Br.
Suite 21.02, 126 Phillip Street, Sydney, NSW, Australia
Phone: 61-2-8222-2200
Woori Bank Dubai Br.
1102A, Level 11, The Gate Building, East Wing, P.O. Box
506760, DIFC, Dubai, United Arab Emirates
Phone: 971- 4-325-8365
Woori Bank India Regional Headquarters
Unit 601, 6th floor, Birla Centurion, Century Mills
Compound, Pandurang Budhkar Marg, Worli, Mumbai,
Maharashtra-400030, India
Phone: 91-22-6263-8100
Woori Bank Chennai Br.
Lotte India, 2nd Floor, No.4/169, Rajiv Gandhi
Salai(OMR), Kandhanchavadi, Perungudi Taluk,
Chennai-600096, Tamil Nadu, India
Phone: 91-44-3346-6900
Woori Bank Gurgaon Br.
1st Floor, Salcon Platina Building, MG Road, Sector-28,
Sikanderpur, Gurgaon-122001,Haryana, India
Phone: 91-12-4270-6703
Woori Bank Mumbai Br.
Unit 601, 6th floor, Birla Centurion, Century Mills
Compound, Pandurang Budhkar Marg, Worli, Mumbai,
Maharashtra-400030, India
Phone: 91-22-6263-8100
Woori America Bank, Fort Lee Br.
2053 Lemoine Avenue Fort Lee, NJ 07024, USA
Phone: 1-201-363-9300
Woori America Bank, Woodside Br.
43-22 50th St. Woodside, NY 11377, USA
Phone: 1-718-429-1900
Woori America Bank, Ridgefield Br.
321 Broad Avenue #104 Ridgefield, NJ 07657, USA
Phone: 1-201-941-9999
Woori America Bank, Palisades Park Br.
225 Broad Avenue Palisades Park, NJ 07650, USA
Phone: 1-201-346-0055
Woori America Bank, Closter Br.
234 Closter Dock Road Closter, NJ 07624, USA
Phone: 1-201-784-7012
Woori America Bank, Elkins Park Br.
7300 Old York Rd Elkins Park, PA 19027
Phone: 1-215-782-1100
Woori America Bank, Annandale Br.
Seoul Plaza 4231 Markeham St. Annandale, VA 22003, USA
Phone: 1-703-256-7633
Woori America Bank, Bayside Br.
215-10 Northern Blvd. Bayside, NY 11361, USA
Phone: 1-718-224-3800
Woori America Bank, Ellicott City Br.
100352 Baltimore National Pike Ellicott City, MD 21042, USA
Phone: 1-443-973-3690
Woori America Bank, Wilshire Br.
3540 Wilshire Blvd. Unit 104, Los Angeles, CA 90010, USA
Phone: 1-213-382-8700
Woori America Bank, Olympic Br.
3360, West Olympic Blvd. Suite #300, LA, CA90019, USA
Phone: 1-213-738-1100
Woori America Bank, Fullerton Br.
5731 Beach Blvd., Buena Park, CA 90621, USA
Phone: 1-714-521-3100
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INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020
Woori America Bank, Garden Grove Br.
10120 Garden Grove Blvd. Suite 151Garden Grove, CA
92844, USA
Phone: 1-714-534-6300
Woori Bank (China) Ltd. Suzhou Br.
6F Building #58 Suzhou Center, Suxiu Road,Suzhou
Industrial Park, Jiangsu, China
Phone: 86-0512-6295-0777
Wooribank (China) Ltd. Beijing Sanyuanqiao Sub-Br.
26F, Tower A, Tianyuangang Center, C2, North Road,
East Third Ring Road, Chaoyang District, Beijing, China
Phone: 86-010-8440-7177
Malang Branch
Jl. Letjen Sutoyo No. 27 Malang- Jawa Timur/65141
Phone: 62341-421906
Soekarno Hatta Sub-Branch
Jl. Soekarno Hatta No. 618 F/40286
Phone: 6222-7509905
Mojokerto Sub-Branch
Jl. Gajah Mada No.85B/60319
Phone: 62321-383444
Woori America Bank, Centreville Br.
13832 Braddock Road. Centreville, VA 20121, USA
Phone: 1-703-988-9555
Woori America Bank, Irvine Br.
14252 Culver Dr. #G, Irvine, CA 92604
Phone: 1-949-885-3760
Woori America Bank, Torrance Br.
2390 Crenshaw Boulevard, Units C Torrance CA 90501
USA
Phone: 1-310-974-1880
Woori America Bank, Georgia LPO
2472 Pleasant Hill Rd. Duluth, GA30096, USA
Phone: 1-404-904-9880
Woori America Bank, San Jose LPO
2328 Walsh Ave, Santa Clara CA 95051 USA
Phone: 1-415-652-9476
Woori America Bank. Northern
164-25 Northern Blvd. Flushing NY 11358, USA
Phone: 1-929-362-3330
Woori America Bank. Dallas LPO
1028 MacArthur Dr.Suite #108, Carrollton, TX, 75007
Phone: 1-972-810-0166
Woori America Bank. Chicago LPO
1247 Milwaukee Ave, Suite 207, Glenview, Illinois, 60025
Phone: 1-224-938-9553
Woori America Bank. Seattle LPO
19401 40th Avenue West, Lynnwood, Washington,
98504
Phone: 1-206-948-6691
Woori America Bank, Dallas Br.
2405 S. Stemmons FWY, Lewisville, TX 75067
China
Woori Bank (China) Ltd.
Floor 11-12, Block A Building 13, District4, Wangjing
East Park, Chaoyang District Beijing China 100102
Phone: 86-010-8412-3000
Woori Bank (China) Ltd. Head office business
department
Floor1 Block B Building 13 District4 Wangjing East Park
Chaoyang District Beijing China 100102
Phone: 86-010-8441-7771
Woori Bank (China) Ltd. Beijing Br.
1F, West Tower, Twin Towers, B-12 Jianguomenwai
Avenue, Chaoyang District, Beijing 100022, CHINA
Phone: 86-010-8453-8880
Woori Bank (China) Ltd. Shanghai Br.
104B,502, Dongfangchunyi Building 1, 5F, Eshan Avenue
505 Pudong New Area, Shanghai,200122, China
Phone: 86-021-5081-0707
Woori Bank (China) Ltd. Shenzhen Br.
1001,1002,1003,1004,1008 ,Hon Kwok City Commercial
Center, Fuming Road, Futian District, Shenzhen, China
Phone: 86-0755-3338-1234
354
Woori Bank (China) Ltd. TianJin Br.
NO.1 Building, Aocheng Commercial Square, Binshui
West Road, Nankai District, Tianjin, 300381 CHINA
Phone: 86-022-2338-8008
Wooribank (China) Ltd, Shenyang Branch
1F, 2F, Lotte North-Station Arcade,9-8Beiling Street,
Huanggu District, Shenyang, Liaoning 110032, China
Phone: 86-024-8186-0808
Woori Bank (China) Ltd. Shanghai Puxi Sub-Br.
1F, Maxdo Center, NO.8 Xingyi Road, Changning District,
Shanghai, 200336, China
Phone: 86-021-5208-1000
Woori Bank (China) Ltd. Beijing Wangjing Sub-Br.
1F,NO.10, FURONG STREET, CHAOYANG DISTRICT,
BEIJING 100102, CHINA
Phone: 86-010-8471-8866
Woori Bank (China) Ltd. Shanghai Wuzhonglu Sub-Br.
1C, Liaoshen Building, 1068 Wuzhong Road, Minhang
District, Shanghai, 201103, China
Phone: 86-021-6446-7887
Woori Bank (China) Ltd. Shenzhen Futian Sub-Br.
Room 107, Daqing Building, NO.6027 Shennan Road,
Futian District, Shenzhen 518040, China
Phone: 86-0755-8826-9000
Woori Bank (China) Ltd. Shanghai Jinxiujiangnan Sub-Br.
No.101-1, 102 MT BLDG, 3999 Hongxin Road, Minhang
District, Shanghai,China, 201101
Phone: 86-021-3432-1116
Woori Bank (China) Ltd. Beijing Shunyi Sub-Br.
1F, Tower A, AMB Building, 2 Cangshang Street, Shunyi
District 101300, China
Phone: 86-010-8945-2220
Woori Bank (China) Ltd. DaLian Br.
2F-218, Yoma IFC, NO.128 Jinma Road, Dalian
Development Area, Dalian, P.R. China 116600
Phone: 86-0411-8765-8000
Woori Bank (China) Ltd. Zhangjiagang Sub-Br.
B104/B205 Huachang Oriental Plaza, 11 Renmin East
Road, Zhangjiagang Jiangsu, 215600 China
Phone: 86-0512-5636-6696
Woori Bank (China) Ltd. Chengdu Br.
No.302-306, 3F, Ping’an Fortune Center, No.1, Renmin
South Road(Section 3), Chengdu, Sichuan, China,
610041
Phone: 86-512-028-6557-2336
Woori Bank (China) Ltd. Weihai Br.
No.106-1、No.106-2、No.106-3 Attached Qingdao Mid-
Road,Weihai, Shandong Province, China
Phone: 86-0631-599-6000
Woori Bank (China)Ltd.Tianjin Dongmalu Sub-Br
1-2F，No. 4 of TowerC，Yuding Plaza（Qixiang Street),
Dongma Road, Nankai District, Tianjin, 300090, China
Phone: 86-022-8776-9000
WooriBank (China) Ltd. Chongqing Br.
Shop 2, First Floor, Jinjia International Building,
No.10, GuiHua Street Branch Road, JiangBei District,
ChongQing, China, 400000
Phone: 86-023-6152-2222
Wooribank (China) Ltd. Shanghai Lianyang Sub-Br.
No.52, Zendai Thumb Plaza Lane 199, FangDian
Road,Pudong New District, Shanghai, 200135 CHINA
Phone: 86-021-6882-0608
Indonesia
Bank Woorisaudara Head Office
Treasury Tower 26th, 27th FL. District 8 SCBD Lot 28
JI.Jend. Sudirman Kav. 52-53, Jakarta 12190
Phone: 6221-50871906
Corporate Branch
Treasury Tower 26th, 27th FL. District 8 SCBD Lot 28
JI.Jend. Sudirman Kav. 52-53, Jakarta 12190
Phone: 6221-50871888
Diponegoro Branch
JL. Diponegoro No,. 28, Bandung, West Java
Phone: 6222-87831906
Cirebon Branch
Komplek Cirebon Super Blok (CSB) Mall Office Park Kav.
No. 11 Jl. Cipto
Phone: 62231-242006
Bogor Branch
Jl. Pangkalan Raya No. 8, Warung Jambu - Bogor/16151
Phone: 62251-8377887
Surapati Core Branch
Komp Surapati Core F-01-02 Bandung
Phone: 6222-87241326
Surabaya Branch
Kompleks Ruko 21, Jl. Raya, Gubeng No.68 E -
Surabaya/60281
Phone: 6231-5041906
Semarang Branch
Ruko Imam Bonjol Square Kav 4 - Kota. Semarang
Phone: 6224-3521906
Tasikmalaya Branch
Ruko Plaza Asia Blok A5-A6, Jl. HZ. Mustofa No. 326 -
Tasikmalaya/46126
Phone: 62265-2351906
Yogyakarta Branch
Jl. Mangkubumi No. 45 - Yogyakarta/55232
Phone: 62274-549280
Denpasar Branch
Ruko Griya Alamanda blok 3-4,Jl. Cok Agung Tresna
Renon-Denpasar/80235
Phone: 62361-263755
The Gedung Energy Branch
Gd The Energy Lot 11 A SCBD, Jl. Jendral Sudirman Kav
52 - 53, Jakarta/12190
Phone: 6221-29951906
Ampera Branch
Jl. Ampera Raya No. 20 Gd.Medco III/12560
Phone: 6221-7821756
Purwokerto Branch
Jl. Jenderal gatot Subroto No.78 Purwokerto - Jawa
Tengah/53116
Phone: 62281-622212
Solo Branch
Jl. Ronggo Warsito No. 53 Kota, Solo - Jawa
Tengah/57131
Phone: 62271-633600
Tangerang city Branch
Tangerang City Business park Blok F/50 Jl. Jend.
Sudirman No.1 Tangerang/15118
Phone: 6221-29529226
Pelembang Branch
Jl. Basuki Rahmat No. 886 A - Palembang/30127
Phone: 62711-315828
Sukabumi Branch
Jl. Jenderal Sudirman No. 31-Sukabumi/43111
Phone: 62266-6251906
Pekalongan Branch
Jl. KH. Mansyur No.64, Perkalongan
Phone: 62 285 4460505
Madiun Branch
Jl. Diponegoro No. 110, Madiun
Phone: 62 351 4773000
Jamber Branch
Jl. Gajah Made No. Ruko Gajah Mada Square Block A2-3
Phone: 62 331 421648
Kediri Branch
Jl, Brawijaya No. 25A Kota Kederi
Phone: 62 354 4526726
Purwakarta Branch
Jl. Basuki Rahmat No. 94, Purwakarta/41114
Phone: 62264-8227474
Subang Branch
JL. Ahmad Yani No. 36/41211
Phone: 62260-421014
Karawaci Tangerang Branch
Ruko Pinangsia Blok H No. 1 Lippo Karawaci Kel.
Cibodas Tangerang/15139
Phone: 6221-55772345
Garut Branch
Jl. Ahmad Yani No.33/44117
Phone: 62262-544672
Medan Branch
Jl. Zainul Arifin No. 53A
Phone: 6261-42007100
Makassar Branch
Jl. Gunung Latimojong, Ruko Metro Square Blok E No. 1
Phone: 6241-18001859
Buah Batu Sub-Branch
Jl. Buah Batu No. 58 Bandung/40265
Phone: 6222- 7306347
Kopo Sub-Branch
Komp Ruko Mas J-9 Jl. Kopo Cirangrang/40225
Phone: 6222-5436802
Cimahi Sub-Branch
Jl. Raya Cibabat No. 310 Cimahi/40213
Phone: 6222-6634656
Sukajadi Sub-Branch
Jl Sukajadi No. 248 Bandung
Phone: 6222-2042248
Pemuda/Rawamangun Sub-Branch
Jalan Paus No 91F, Pulogadung, Jakarta Timur
Phone: 6221-47862070
Cianjur Sub-Branch
Jl. Abdulah Bin Nuh No.15/43253
Phone: 62263- 260941, 260943
Sumedang Sub-Branch
Jl. Prabu Geusan Ulun No.76/45311
Phone: 62261-206527
Serang Sub-Branch
Jl. KH. Abdul fatah Hasan No.53 Kel. Cipare
Serang/42124
Phone: 62254-224142
Commercial Center Cikarang Sub-Branch
Ruko The Capitol, Kawasan Industri JABABEKA, Jl.
Niaga Raya Blok 2 C, Bekasi, West Java
Phone: 6221-89328838
Atrium/Cideng Sub-Branch
Jalan Keseman No 2, Kota. Jakarta Pusat
Phone: 6221-3451964
Pamulang/Ciputat Sub-Branch
Jl. RE. Martadinata No. 167 B RT.03 RW. 05 Cipayung,
Ciputat, Kota Tangerang Selatan
Phone: 6221-7403205, 7443335
Sumber Sub-Branch
Jl. Dewi Sartika No. 57 Sumber/45611
Phone: 62231-8330618
Bantul Sub-Branch
Jl. Jenderal Sudirman No. 130 Kabupaten Bantul/55713
Phone: 62274-367514
Balaraja Sub-Branch
Komplek Ruko Balaraja Center Blok A No.2 Jl. Raya
Serang Km. 24 Talaga Sari Balaraja-tangerang/15610
Phone: 6221-29015618
Kebon Jeruk Sub-Branch
Jl. Kelapa Dua Raya(RayaPanjang) No.2, Rt 008, Rw 002
Kel. Kelapa Dua Kec. Kebon Jeruk/12130
Phone: 6221-53660160
Ciledug Sub-Branch
Ruko Dian Plaza Jl. Raden Fatah No. 8A Kelurahan
Sudirman Selatan,Ciledug/15225
Phone: 6221-7330545
Pajajaran Sub-Branch
Jl. Pajajaran no. 85, Bandung, West Java
Phone: 6222-20565353
Magelang Sub-Branch
Ruko Metro Square Blok F No.25/56172
Phone: 62293-326498/326499
Lembang Sub-Branch
Jl. Grand Hotel Lembang No.25 Bandung/40391
Phone: 6222-2784797
Padalarang Sub-Branch
Jl. Raya Padalarang No.463 H/40553
Phone: 6222-6803940/41
Jababeka Cikarang Sub-Branch
Ruko Metro Boulevard Kav. A Jl. Niaga Raya No. 10
Kawasan Industri Jabeka/17835
Phone: 6221-89836020/ 89837020
Majalengka Sub-Branch
Jl. KH. Abdul Halim No.447 Majalengka/45411
Phone: 62233-8285460
Kuningan Sub-Branch
Jl. Dewi Sartika No.4/45512
Phone: 62232- 8880938
Indramayu Sub-Branch
Jl. DI. Panjaitan No.103/45212
Phone: 62234-276236
Cibubur Sub-Branch
Cibubur Times Square Blok B1/1 Jl. Alternatif Cibubur
KM 3 Kel. Jatiraya, Kec. Jastisampurna Bekasi/17435
Phone: 6221-84305050
Cikampek Sub-Branch
Jl. Terusan Sudirman No. 6B(Sudirman Center)/41373
Phone: 62264-8385171/ 8385172
Depok Sub-Branch
Jl. Margonda Raya No.1 Rt 001/011 Kelurahan Depok
Kecamatan Pancoran Mas/16431
Phone: 6221-7522091
Salatiga Sub-Branch
Ruko Wijaya Square B5 Jl.Diponegoro No. 110
Salatiga/50711
Phone: 62298-311828
Sidoarjo Sub-Branch
Jl. KH. Mukmin No.11 Blok B-7 Sidoarjo/60281
Phone: 6231-8922842
Patrol Sub-Branch
Jl. Raya Patrol Anjatan Blok Bunder No. 52/45256
Phone: 62234-5613627
Gianyar Sub-Branch
Jl. By.Pass Dharma Giri No.99/80511
Phone: 62361-8958295
Gresik Sub-Branch
Ruko KIG Jl. Tri Dharma Kav. A-14/61117
Phone: 6231-3981758
Karawang Sub-Branch
Perumahan Galuh Mas Ruko Street Festival Blok 3 No.
H-9, Jl. Galuh mas Raya, Karawang, West Java
Phone: 62267-8407706
Cibinong Sub-Branch
Jl. Raya Mayor Oking No.158 V/16918
Phone: 6221-87904397
Singaparna Sub-Branch
Jl. Raya Timur No.45 Singaparna/46416
Phone: 62265-543111-3
Ciamis Sub-Branch
Ruko Jl Pasar Manis No. 35 -Kab. Ciamis
Phone: 62265-772221
Sleman Sub-Branch
Jl. Magelang KM 12.8 No.200/55514
Phone: 62274-865922
Losari Sub-Branch
Jl. Letjen S. Parman No. 20 Kecamatan Pabuaran , Kab.
Cirebon Jawa Barat
Phone: 62231- 8832738-39
355
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Bekasi/Pondok Gede Sub-Branch
Jl Raya Jatimakmur Blok A No. 20 Pondok Gede, Kota
Bekasi Ruko Taman Jatimakmur Indah
Phone: 6221-82611045-46
Cilacap Sub-Branch
Jl. Jend. A Yani No.46 Cilacap/53212
Phone: 62282-537929
Kudus Sub-Branch
Jl. Sunan Kudus No.5 a/509000
Phone: 62291-4249241
Pamanukan Sub-Branch
Jl. Eyang Tirtapraja No.54 Kab.Subang/41254
Phone: 62260-551773
Majalaya Sub-Branch
Jl. Alun-alun utara/Jl. Tengah komp ruko permata
majalaya Blok C6/40382
Phone: 6222-85963799
Pangalengan Sub-Branch
Jl. Raya Pintu Pangalengan KM-1/40378
Phone: 6222-5979222
Megablock Cilegon Sub-Branch
Jl. Raya Ahmad Yani Komp. Cilegon Green Megablock
D3 No. 17 - Kota. Cilegon
Phone: 62254-8484772
Rangkasbitung Sub-Branch
Jl Hardiwangun No.6 B Rangkasbitung - Kab. Lebak
Phone: 62252-203612
Tabanan Sub-Branch
Jl. Ngurah Rai No. 73 Kediri/82121
Phone: 62361-814160
Surabaya /Darmo Boulevard Sub-Branch
Office Park II B.2 No.11
Phone: 6231-7381906
Soreang Sub-Branch
Jl. Raya Soreang No.412/40900
Phone: 6222-5896880
Ujung Berung Sub-Branch
Jl AH Nasution No. 28 - Kota.Bandung
Phone: 6222-7834128
Jemur Sari/Surabaya selatan Sub-Branch
Jl. Raya Jemursari No. 15C Surabaya/60237
Phone: 6231-8480454
Luragung Sub-Branch
Jl. Siliwangi No. 62, Ds. Luragungtonggoh, Kec.
Luragung, Kab. Kuningan
Phone: 62223-2870016
Pangandaran Sub-Branch
Jl. Parapat, Desa Pangandaran, kec pangandaran kab
ciamis/46396
Phone: 62265-630400,630010
Purwodadi Sub-Branch
Jl. Letjend. S. Parman No. 13 Kel. Purwodadi Kec.
Purwodadi Jawa Tengah/58111
Phone: 62292-423399
Leuwiliang Sub-Branch
Jl. Raya Jasinga 11A Kel. Cibeber, Kec. Leuwiliang Kab
Bogor/16640
Phone: 62251-8640297
Ciawi Tasikmalaya Sub-Branch
Jl. Perjuangan No.80 Kp.Karanganyar Rt. 04 Rw. 05
Desa Pakemitan Kec Ciawi Kab. Tasikmalaya/46156
Phone: 62265-455163,455167
356
Jombang Sub-Branch
Ruko Cempaka Mas Regency Block B-2. JL Soekarno
Hatta Kel Kepuhkembeng Kec Peterongan. Jombang,
East Java
Phone: 62321-878906
Banjar Sub-Branch
Jl. Letjen Soewarto No.92/46321
Phone: 62265-740557
Boyolali Sub-Branch
Jl. Pandanaran No.179 B Kab.Boyolali/57313
Phone: 62276-323655
Radio dalam Sub-Branch
JL. Radio dalam raya No.4 Kel. Gandaria Utara Kec.
Kebayoran baru Jakarta selatan/12160
Phone: 6221-7211005
Singaraja Sub-Branch
Jl. Ngurah Rai No. 16 Singaraja Kelurahan Kendran
Kecamatan Buleleng/81112
Phone: 62362-25098
Manonjaya Sub-Branch
Jl. RTA. Prawira Adiningrat No.214 A Desa Manonjaya
kec.Manonjaya-Tasikmalaya
Phone: 62265-380510
Surabaya Utara /kertajaya Sub-Branch
Jl. Kertajaya Indah No. 9/F-105 Surabaya/60161
Phone: 6231-5927202
Batu Sub-Branch
Jl. Brantas No.49 Batu-Malang/65314
Phone: 62341-513709
Palimanan Sub-Branch
Jl. Otto Iskandardinata No.503 Palimanan
Phone: 62231-343950
Cibadak Sub-Branch
Jl. Raya Suryakencana RT 03 RW 08, Cibadak - Kab.
Sukabumi
Phone: 6266-531915
Kemang Pratama Bekasi Sub-branch
Jl. Niaga Raya Blok P No.22C RT 001/021 Kel. Bekasi
Phone: 62254-369755
Wates Sub-Branch
Jl. Kolonel Sugiyono No.3-Wates
Phone: 62274-6657325
Karangnunggal Sub-Branch
Jl. Raya Karangnunggal KP.Karangmekar RT/RW 03/09
Desa Hegarwangi Kec. Bantarkalong Kab.
Phone: 62265-2584571/2584572
Wonogiri Sub-Branch
Jalan Ahmad Yani No 66, Wonogiri
Phone: 62271-633600
Kawali Sub-Branch
Jl. Siliwangi No.262, Desa Kawali mukti
Phone: 62265 791560
Kepanjen Sub-Branch
Jl. Kawi Ruko B7, Kepanjen
Phone: 6234 1-379840
Pamekasan Sub-Branch
Jl. Kabupaten No.114
Phone: 62324 333905/62324 333906
Kebumen Sub-Branch
Jl. Ahmad Yani No.20, Kubumen
Phone: 62287 3878168
Mangga Dua Sub-Branch
Ruko Harco Mangga Dua Blok L. No.5
Phone: 6221 62306495
Kelapa Gading Sub-Branch
Jl. Boulevard Barat Ruko MOI Blok I No.15
Phone: 62 21 29364053
Kayu Agung Sub-Branch
Jl. Letnan Muthtar Saleh, Kayuagung, Palembang, South
Sumatra
Phone: 62-711-315828
Klaten Sub-Branch
Jl. Pemuda No. 246 Klaten, solo
Phone: 62-271-633600
Pasuruan Sub-Branch
Jl. Panglima Sudirman No.45 Ruko I, Pasuruan, Malang
Phone: 62-343-561-4700
Pati Sub-Branch
Jl. Ir. Susato No.40 Pati, Jawa Tengah
Phone: 62-24-352-1906
Sumenep Sub-Brancch
JI. Trunouyo No. 244 Sumenep
Phone: 62-3428-6762234
Pelabuhan Ratu Sub-Branch
Jl. Siliwangi Rt/Rw 02/18, Desa Pelabuhan Ratu
Phone: 62-266-6249715
Posco Cilegon Sub-branch
Annex Building Lt. 1 Jl. Afrika No.2 Krakatau Posco
Cilegon/42435
Phone: 62254-369755
Union Square Cikarang Sub-branch
Ruko Union Square Blok A No.6 Lippo Cikarang,
Cikarang Selatan
Phone: 6221-89909797
Sadang Sub-Branch
Sadang Terminal Square No.07,08,25 Jl. Raya Sadang
Purwakarta/41181
Phone: 62264-8220180
Cikajang Sub-branch
Jl. Raya Cikajang No. 80 Garut
Phone: 6262-576094
Kendal Sub-branch
Jl. Raya Utama No.9 weleri kendal
Phone: 62294-644704
Wonosari Sub-branch
Jl. KH. Agus Salim No.71A Wonosari - Kab Gunungkidul
Phone: 62274-3950673
Purbalingga Sub-branch
Jl. Ahmad Yani No.42 Purbalingga
Phone: 62281-895553
Sragen Sub-branch
Jl. Sukowati No.156 Sragen
Phone: 62271-895015
Bintaro Sub-branch
Jl Kesehatan No 18B, jakarta
Phone: 6221-7374693
KCP PROBOLINGGO
Ruko Manunggal No. 2, Jl. Soekarno Hatta
Phone: 6233-54491787
KCP PANDEGLANG
Jl. Raya Labuan KM 1
Phone: 6225-35554739
KCP PASAR ATOM
Jl. Pangampon No. 75
Phone: 6231-3503350
KCP CITRA RAYA
Ruko Cikupa Niaga Mas Blok A No. 12
Phone: 6212-9014270
KCP CAKUNG
Jl. Jawa Raya Blok A 14 No. 7 (Kawasan Berikat
Nusantara)
Phone: 6214-84556
KCP PANTAI INDAH KAPUK
Jl. Marina Raya, Rukan Cordoba Blok A Nomor 11
Phone: 6212-2571768
KCP CENTRAL PARK
Ruko Garden Shopping Arcade No. 9 A-C
Phone: 6212-9334623
KCP JEPARA
Jl. Pemuda No. 21 D-E
Phone: 6291-4290507
KCP BANJARNEGARA
Jl. Letjend S Parman No. 29
Phone: 6286-5963716
Lawang Sub-branch
Ruko Lawang View Kav 8, JI. Thamrin, Kecamatan
Lawang
Phone: 62-341-423540
Purworejo Sub-branch
JI. Ahmad Yani no.93, Purworejo
Phone: 62-75-321457
Brebes Sub-branch
Jl. Jenderal Ahmad Yani No 26 F
Phone: 6288-34511421
Karanganyar Sub-branch
Jalan Raya Palur Jurug RT 004/RW 001 Desa Ngringo,
Kec. Jaten, Kab. Karanganyar
Phone: 62-271-6882712
Ungaran Sub-branch
Jl. Diponegoro No. 79 Kelurahan Ungaran, Kecamatan
Ungaran Barat, Semarang, Central Java, 50511
Phone: 6224-76510787
Dalem Kaum Cash-Office
Jl Dalam Kaum No. 5 - Kota.Bandung
Phone: 6222-4211906
Batujajar Cash-Office
Jl. Batujajar No.324 Bandung
Phone: 6222-86861018/17/15
Asabri Bandung Cash-Office
Jl. Citarum No.6, Bandung, West Java
Phone: 6222-7279740
Jatinangor Cash-Office
Jl. Raya Jatinangor KM 20.5 KKBI IKOPIN/45363
Phone: 6222-7781587
Darmaraja Cash-Office
Jl. Raya Darmaraja No.253 desa Darmaraja, Kec
Darmaraja Kab.Sumedang/45372
Phone: 62262-429000,429069,428478
Cililitan Asabri Cash-Office
Jl. Mayjen Sutoyo No.11 Gedung PT Asabri (persero) Jl.
Cililitan - jakarta Timur/13630
Phone: 6221-80876494
AO Woori Bank Saint-Petersburg Br.
1st Floor, Atlantic City, 126 Savushkina Street, Saint-
Petersburg, 197374, Russia
Phone: 7-812-327-9787
Jatibarang Cash-Office
Jl. Letnan Joni No.178 Kec. Jatibarang - Kab
Indramayu/45273
Phone: 62834-352911
Pacar Anyar / Taman Topi Cash-Office
Jl. Sawojajar No.12 B, Kota. Bogor
Phone: 62251-8574423
AO Woori Bank Vladivostok Representative Office
Vladivostok Business-Center Office No. 614,
29, Semenovskaya Str. Vladivostok, 690091, Russia
Phone: 7-423-240-7014
Brazil
Serang / pamila Cilegon Cash-Office
Jl. Raya Serang- pandeglang KM 11 Lingkungan waru
Lor,Desa/kel. Kamanisa Kec Curug Kota serang/42117
Phone: 62254-222133
Woori Bank Brasil
Avenida das Nacoes Unidas, 14,171, Crystal Tower,
Conj.803, Vila Gertrudes, 04794-000, Sao Paulo-SP,Brasil
Phone: 55-11-3511-3300
Gading Serpong Cash-Office
Jl. Boulevard Raya Gading Sepong, Ruko Alexandrite 3,
No.21, Kabupaten Tangerang
Phone: 62-21-5421-2159
Woori Bank Brasil Bom Retiro Branch
Rua Tres Rios, 261 Andar 2, Bom Retiro, Sao Paulo SP,
Brasil
Phone: 55-11-3511-3350
Bojonergoro Cash-Office
Jl. Untung Suropati Ruko Adipura Block A-11
Phone: 62-353-311271
Surya symantri Cash-Office
Jl. Surya Sumantri No. 06 RT. 05 RW.
Phone: 04 62-22-2021760
Asabri Cash-Office
Jl. Gayungan PTT, No. 43, Surabaya – 60235, Gedung
Kantor Asabri Surabaya
Phone: 62-31-82517971
KK KEMANG
Kemang Square Lt 2, Unit I-11 & I-12, Jl. Kemang Raya
No. 3 A
Phone: 6221-22716210
KK CIKANDE
Jl. Raya Jakarta - Serang KM 68, Ruko Grand Permata
No. 10
Phone: 6225-47951546
Kalasan Cash-Office
JL. Laksda Adisucipto KM.10, Ruko Airport Square
RT.001 RW.001 Purwomartani, Kalasan, Sleman, D.I
Yogyakarta 55281
Phone: 6227-44332487
Asabri Semarang Cash-Office
JL Perintis Kemerdekaan No3. Kel Pudakpayung Kec
Banyumanik. Semarang, Central Java
Phone: 62247-6403870
Dalem Kaum Functional Office
JL. Dalem Kaum No.5 Bandung
Phone: 6222- 4233810
Hong Kong
Woori Global Markets Asia Limited
Rooms 1907-1909, 19/F, Gloucester Tower, The
Landmark, 15 Queen’s Road Central, Hong Kong
Phone: 852-3763-0888
Russia
AO Woori Bank
8th floor., Lotte Plaza, 8, Novinsky Boulevard, Moscow,
121099, Russia
Phone: 7-495-783-9787121099
Myanmar
Woori Finance Myanmar Plc.
115/A, Pyay Road, Saw Bwar Gyee Kone Ward(10
miles), Insein Township Yangon, Myanmar
Phone: 95-01-64379811011
MingaladonI Branch
115/A, Pyay Road, Saw Bwar Gyee Kone Ward(10
miles), Insein Township Yangon, Myanmar
Phone: 95-01-643798
NorthOkkalapa Branch
No. M(56), Thiriyadanar Wholesale Market
NorthOkkalapa Township, Yangon, Myanmar
Phone: 95-99-6889-2300
MingaladonII Branch
4F, 115/A Pyay Road, Saw Bwar Gyee Kone
Ward(10miles), lnsein Township, Yangon Myanmar
Phone: 95-1-643798
Nyaungdon Branch
Room No. 103, 1st Street, 5 Quarter, Nyaungdon
Township, Ayarwaddy, Myanmar
Phone: 95-99-7674-7709
Taikkyi Branch
Room No.9, Natsinkone Road, Ohtan Ward, Taikkyi
Township, Yangon, Myanmar
Phone: 95-9-7717-81028
Hmawbi I Branch
2F No(26) Tatkyee Kone village, Hmawbi Township,
Yangon, Myanmar
Phone: 95-9-974563586
Hmawbi II Branch
1F No(26) Tatkyee Kone village, Hmawbi Township,
Yangon, Myanmar
Phone: 95-9-97456395
Maubin I Branch
Plot No(34), No(396), Building 01, Yei Le road, Ward 7,
Maubine Township, Ayeyarwaddy, Myanmar (2F)
Phone: 95 9 9712 25895
Maubin II Branch
Plot No(34), No(396), Building 01, Yei Le road, Ward 7,
Maubine Township, Ayeyarwaddy, Myanmar (1F)
Phone: 95 9 9616 12763
357
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Kawhmu Branch
No 192/B, Bogyoke St. South Wd Kawhmu Townshop,
Yangon
Phone: 95 9 9742 91112
Gyobingauk I Branch
No. 154, Ashay Myopat St. Pan Tin Ward, Gyobingauk
Township, Bago, Myanmar
Phone: 95 9 764433936
Natmauk Branch
No.22, Plot U Paing No.105, East Aung San Ward,
Natmauk Township, Magway
Phone: 95-9-891504155
TAGBILARAN BANKING CENTER
Ground Floor, No. 15 JS Torralba St., Poblacion 2,
Tagbilaran City, Bohol
Phone: 63-411-4860
Hochiminh Branch
No. 7,8,9, 2nd Floor, Mplaza Saigon, 39 Le Duan St., Ben
Nghe Ward, Dist. 1, HCMC, Vietnam
Phone: 84-8-3821-9839
Insein Branch
115/A, Pyay Road, Saw Bwar Gyee Kone Ward(10
miles), Insein Township Yangon, Myanmar
Phone: 95 1 643798
Zigon Branch
Hlaing Htate Khaung Tin St. No. 1 Ward, Zigon
Township, Bago, Myanmar
Phone: 95 9 780 113417
Kungyangon Branch
No 540, Yadanar Pone 2nd St, Kangyi / Magyi Ward,
Kungyangon Township, Yangon, Myanmar
Phone: 95 9 975 890019
Paungde I Branch
Plot No. 79, Shwetaung Street, Min Kwet 3, Ward,
Paungde Township, Bago, Myanmar
Phone: 95 9 780114012
Zalun Branch
Bogyok St. Nyaung Pin Zay Ward, Zalun Township,
Ayeyarwady, Myanmar
Phone: 95 9 960996083
Paungde II Branch
Plot No. 79, Shwetaung Street, Min Kwet 3, Ward,
Paungde Township, Bago, Myanmar
Phone: 95 9 780114068
Kyimyindaing Branch
No. 101, Tha Yet Taw(3) Upper St. Tha Yet Taw Ward,
Kyimyindaing Township, Yangon, Myanmar
Phone: 95 9 960996092
Lewe I Branch
No. 17 Plot, Min Wine Yat, No. 4 Ward, Lewe Township,
Nay Pyi Taw, Myanmar
Phone: 95 9 402187901
Hinthada I Branch
No. 49, U Wisarra St. Pha Tar Gyi Ward, Hinthada
Township, Ayeyardady, Myanmar
Phone: 95 9 960996099
Pyinmana I Branch
No. 181, Yarza Htarni St. Aung Thar Yar Ward, Pobbathiri
Township, Nay Pyi Taw, Myanmar
Phone: 95 9 402187923
Hlaing Branch
No. 101, Tha Yet Taw(3) Upper St. Tha Yet Taw Ward,
Kyimyindaing Township, Yangon, Myanmar
Phone: 95 9 960996089
Pyinmana II Branch
No. 181, Yarza Htarni St. Aung Thar Yar Ward, Pobbathiri
Township, Nay Pyi Taw, Myanmar
Phone: 95 9 402187924
Hinthada II Branch
No. 93, Nat Maw St. Panbetan Ward, Hinthada
Township, Ayeyarwady, Myanmar
Phone: 95 9 961010611
Hinthada III Branch
No. 93, Nat Maw St. Panbetan Ward, Hinthada
Township, Ayeyarwady, Myanmar
Phone: 95 9 961010611
Twantay Branch
No. 49, Bo Kyoke St. Kon Gyan(Middle) Ward, Twantay
Township, Yangon, Myanmar
Phone: 95 9 961010511
Pyapon I Branch
No. 18C, 8th St. 9th Ward, Pyapon Township,
Ayeyarwady
Phone: 95 9 950311093
Pyapon II Branch
No. 18C, 8th St. 9th Ward, Pyapon Township,
Ayeyarwady
Phone: 95 9 950311096
Pantanaw I Branch
No. 1, Sel Myaung St. Myo Kwet Thit 1, Pantanaw
Township, Ayeyarwady, Myanmar
Phone: 95 9 764433931
Pantanaw II Branch
No. 1, Sel Myaung St. Myo Kwet Thit 1, Pantanaw
Township, Ayeyarwady, Myanmar
Phone: 95 9 764433932
Lewe II Branch
No. 241, Office Street, Min Wine Yat, No. 4 Ward, Lewe
Township, Nay Pyi Taw, Myanmar
Phone: 95 9 441580466
Dekkhinathiri Branch
No. Da-2410, Wai Da 10 St. Dekkhinathiri Township, Nay
Pyi Taw, Myanmar
Phone: 95 9 441580468
Ⅲ
Branch
Lewe
No. 241, Office Street, Min Wine Yat, No. 4 Ward, Lewe
Township, Nay Pyi Taw, Myanmar
Phone: 95 9 403663020
Ⅰ
Branch
Takkon
No. (ma-127), Yin Mar Street, Area (3), Mya Waddy
Ward, Takkon Township, Nay Pyi Taw
Phone: 95 9 441473341
Ⅱ
Branch
Takkon
No. 93, Thatoeminsaw Yat, Aung Zaya Ward, Takkon
Township, Nay Pyi Taw
Phone: 95 9 441481276
Ottarathiri Branch
No. Ou-1513, Shwe Nant Thar Ward, Ottarathiri
Township, Nay Pyi Taw
Phone: 95 9 893642032
Nattalin Branch
No.52, Apyin Tharzi Street, Tharzi Ward, Nattalin
Township, Bago
Phone: 95-9-773579731
Gyobingauk I Branch
No. 154, Ashay Myopat St. Pan Tin Ward, Gyobingauk
Township, Bago, Myanmar
Phone: 95 9 764433935
Taungwingyi Branch
No. 174, Ohntaw No. 2 Ward, Taungdwingyi Township,
Magwey
Phone: 95-9-692687628
358
Philippines
Wealth Development Bank
Taft Financial Center, Cardinal Rosales Avenue, Cebu
Business Park, Cebu City, Cebu
Phone: 63-32-415-5265
ALABANG BRANCH
Unit 103, South Center Tower Condominium 2206
Market Street, Madrigal Business Par Alabang,
Muntinlupa City
Phone: 63-2-801-5335
ANGELES MARQUEE MALL BRANCH
Ground Floor , Marquee Mall, Don Bonifacio St., Pulung
Maragul Angeles City, Pampanga
Phone: 63-45-624-0072
LEGAZPI PACIFIC MALL BRANCH
G/F Expansion II, Pacific Mall Legazpi, Landco Business
Park, F. Imperial Street Cor. Circumferential Road,
Legazpi City 4500
Phone: 63-52-480-0038
LUCENA PACIFIC MALL BRANCH
Ground Floor L 1-26, Pacific Mall, M.L. Tagarao St.
Landco Business Park, Brgy. III , Lucena City, Quezon
Phone: 63-42-795-3771
TAGUIG MARKET MARKET BRANCH
Ground Floor, Play Ground Zone, Metro Market Market
Mall, Mckinley Parkway, Fort Bonifacio Global City,
Taguig City
Phone: 63-02-889-0275
CEBU AYALA BRANCH
Ground Floor, Taft Financial Center, Cardinal Rosales
Avenue, Cebu Business Park, Brgy. Luz, Cebu City
Phone: 63-32-415-4888
CEBU RAMOS BRANCH
Ground Floor, Hilario Chu Bldg., No. 148 F. Ramos St.
Santa Cruz, Cebu City
Phone: 63-32-412-6302
CEBU CARBON BRANCH
Ground Floor, M.C. Briones & Plaridel Sts., Cebu City
Phone: 63-32-416-9077
CEBU MANDAUE BRANCH
Ground Floor, G/F Meritz Building, A.C. Cortes Ave.
Ibabao, Mandaue City, Cebu
Phone: 63-343-8144
CEBU TABUNOK BRANCH
Ground Floor, AGSy Bldg., National Hi-Way, Tabunok
Talisay City, Cebu
Phone: 63-32-272-2955
CEBU MANDAUE PACIFIC MALL METRO BRANCH
Ground Floor, Mandaue Pacific Mall Metro National
Highway corner M.B. Fernan Ave. Estancia, Ibabao,
Mandaue City, Metro Cebu
Phone: 63-32-239-1072
CEBU MAMBALING BRANCH
G/F Metro Store Mambaling, Cebu, N. Bacalso Avenue
corner F. Llamas Street, Basak San Nicolas, Cebu City
Phone: 63-414-4233
ILOILO BANKING CENTER
Ground Floor, ACCE Bldg., Mabini Ledesma St.,
Liberation, Iloilo City
Phone: 63-338-4419
CAGAYAN DE ORO BANKING CENTER
Ground Floor, Jammin Lui Bldg., corner A. Velez &
Gomez Sts. Poblacion, Cagayan de Oro City, Misamis
Oriental
Phone: 63-88-856-8974
DAVAO BRANCH
Ground Floor, Door 8, 9 & 10 Grand MenSeng Hotel
Pichon St., 1-E Poblacion, Davao City, Davao del Sur
Phone: 63-82-225-3318
TACLOBAN BRANCH
Sukwan Bldg, corner Real and Burgos Streets, Tacloban City
Phone: 63-053-832-3435
CALOOCAN BRANCH
Rizal Avenue Extension, East Grace Park, Caloocan
1400, Metro Manila
Phone: 63-0917-870-7335
GENSAN BRANCH
Gaisano mall, Jose Catolico Sr. Avenue, General Santos
City, South Cotabato
Phone: 63-083-250-1238
DUMAGUETE BRANCH
1F Jose Building South Road Calindagan, Dumaguete
City
Phone: 63-035-523-5532
BACOLOD BRANCH
Lacson-Luzuriaga Streets, Bacolod City, Negros
Occidental
Phone: 63-034-447-0227
BUTUAN BRANCH
JC Aquino Ave, corner, Pareja Subdivision, Butuan City,
Mindanao
Phone: 63-0917-870-7390
NAGA BRANCH
Ground Floor, Super Metro Camarines Sur, Panganiban
Drive, Naga City, Casmarines Sur
Phone: 63-054-881-2836
BAGUIO BRANCH
NRC Building, Abanao Street, Baguio City, Benguet,
Cordillera Administrative Region
Phone: 63-074-665-2394
BINONDO BRANCH
Lucky Chinatown Mall, Reina Regente St. Binondo,
Manila, National Capital Region
Vietnam
Wooribank Vietnam
34F, Keangnam Landmark 72, E6 Pham Hung Road, Tu
Liem District. Hanoi, Vietnam
Phone: 84-04-7300-6802
Hanoi Branch
24F, Keangnam Landmark 72, E6 Pham Hung Road, Tu
Liem District. Hanoi, Vietnam
Phone: 84-4-3831-5281
Bac Ninh Branch
1-2 Floor Halla Bld, Yen Phong Industrial Zone, Yen
Trung Commune, Yen Phong District, Bac Ninh Province,
Vietnam
Phone: 84-222-369-9431
Hai Phong Branch
NO. 4, Lot 22A, Le Hong Phong Street (Cat Bi Airport
New Urban Area), Dong Khe Ward, Ngo Quyen District,
Hai Phong City, Vietnam
Phone: 84-255-730-0101
Thai Nguyen Branch
2nd Floor, Gate 1, Samsung Electronics Vietnam Co.,Ltd.
Thai Nguyen, Yen Binh Industiral Zone, Dong Tien ward,
Pho Yen town, Thai Nguyen Province, Vietnam
Phone: 84-208-730-0010
Binh Duong Branch
10th Floor, Becamex Building, No.230, Binh Duong
boulevard, Thu Dau Mot City, Binh Duong Province,
Vietnam
Phone: 84-274-222-2631821620
Phu My Hung Branch
Unit SA-01, Riverpark Residence Complex, 341 Ha Huy
Tap Street, Tan Phong Ward, District 7, Ho Chi Minh City,
Vietnam
Phone: 84-28-7303-0510
Dong Nai Branch
Ton Duc Thang road, Nhon Trach 3 Industrial Zone,
Phase1, Hiep Phuoc, ward, Nhon Trach district, Dong
Nai Provincem Vietnam
Phone: 84-251-730-0370
Ha Nam Branch
1st and 2nd floor, Tien Loc Building, Commercial
Service Zone 4, Thanh Chau ward, Phu Ly City, Ha Nam
Province, Vietnam
Phone: 84-266-730-0020
Da Nang Branch
2nd floor, Phi Long Technology Building, 52 Nguyen
Van Linh Road, Nam Duong Ward, Hai Chau District, Da
Nang City, Vietnam
Phone: 84-236-730-0321
Bien Hoa Branch
5th Floor, Sonadezi Building, No 1, Road 1, Bien Hoa 1
Industrial Zone, An Binh Ward, Bien Hoa City, Dong Nai
Province, Vietnam
Phone: 84-251-730-0270
Sai Gon Branch
Ground floor and 8th Floor, E-Town 1 Building, no. 364
Cong Hoa St. Ward 13, Tan Binh District, Ho Chi Minh
City, Vietnam
Phone: 84-28-7300-2710
Vinh Phuc Branch
1st and 2nd Floor, Bao Quan Hotel, 396 Me Linh Street,
Lien Bao ward, Vinh Yen City, Vinh Phuc Province,
Vietnam
Phone: 84-211-730-0010
Hoan Kiem Branch
1st and 5th Floor, Asia Tower Building, No.6, Nha Tho
street, Hang Trong ward, Hoan Kiem district, Hanoi city,
Vietnam
Phone: 84-24-3204-5203
Cambodia
WB Finance
Buliding 398, Preah Monivong Blvd, Sangkat Boeun
Keng Kang 1, Khan Chamkarmon, Phnom Penh 12302,
Kingdom of Cambodia
Phnom Penh Head Office
Lot No. 398, Monivong Blvd., Sangkat Beung Keng Kang
1, khan Chamkar Mon, Phnom Penh.
Phone: 023969269
Kandal Regional Office
#240, National Road 2, Krapeu Ha Village, Sangkat
Preak Ruessei, Ta Khmao City, Kandal Province
Phone: 087634444
Sa’ang Branch Office
National Road no.21, Preaek Run village, Preaek Koy
commune, S’ang district, Kandal province
Phone: 087777993
Kien Svay Branch Office
National Road no.1, Tuol Tnaot village, Kaki commune,
Kien Svay district, Kandal province
Phone: 087777488
Kandal Stueng Branch Office
#86, National Road no. 2, Preaek Roka village, Preaek
Roka Commune, Kandal Stueng district, Kandal
province
Phone: 087777132
Leuk Daek (Kampong Phnom) Branch Office
National Road No. 1, Ampil Tuek village, Kampong
Phnum commune, Leuk Daek district, Kandal province
Phone: 087777279
Prey Veng Branch Office
National Road No 11. Village 8, Sangkat Kampong Leav,
Prey Veng city, Prey Veng province
Phone: 010855644
Sithor Kandal Branch Office
Preaek Sandaek Village Preaek Changkran Commune,
Sithor Kandal District Prey Veng Province.
Phone: 010855220
Svay Rieng and Svay Chrom Regional Office
Keansang Village, Svay Rieng Commune, Svay Rieng
City, Svay Rieng Province
Phone: 068855973
Preah Sdech Branch Office
Krasang Tong village, Angkor Reach commune, Preah
Sdach district, Prey Veng province
Phone: 0889201571
Kampong Trabaek Branch Office
Doun Tong village, Prasat commune, Kampong Trabaek
district, Prey Veng province
Phone: 0886450320
Mesang Branch Office
Vang Villege Chiphouch Commune, Mesang District,
Prey veng Provinece,
Phone: 010855188
Chantrea Branch Office
Thnal Cheat Village, Sangkat Chrok Mates, Bavith City,
Svay Rieng province,
Phone: 0889204613
Romeashek Branch Office
Tatrav Village, Kampong Trach Commune, Romeashek
District, Svayreing province,
Phone: 0884831787
359
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Kampong Ro Branch Office
Svay Anat Village, Nhor Commune, Kampong Rou
District, Svay Rieng Province
Phone: 0889204643
Basedth Branch Office
Slab Leaeng village, Svay Rompea commune, Basedth
district, Kampong Speu province
Phone: 0884874229
Phnum Kravanh Branch Office
Pich Ban Village, Leach Commune, Phnum Kravanh
District, Pursat Province
Phone: 0884845057
Rumduol Branch Office
Chak Village, Kampong Chak commune Rumduol
District Svay Rieng Province
Phone: 0889204641
Takeo Regional Office
National Road No. 2, Thnorl bek village, Sangkat Roka
Krao, Doun Kaev city, Takeo province
Phone: 015493888
Bati Branch Office
National Road no. 2, Smau Khnhei village, Trapeang Sab
commune, Bati district, Takeo province
Phone: 0884839823
Tramkok Branch Office
Prey Rumdeng Village, Angk Ta Saom Commune, Tram
Kak District, Takeo province
Phone: 060855213
Kirivong Branch Office
Po Khvet Village, Phrah Bat Choan Chum Commune,
Kirivong District, Takeo Province
Phone: 060855886
Koh Andaet Branch Office
Prey Malong Khang Tbong Village, Prey Khla commune,
Koh Andaet district, Takeo province
Phone: 0884839711
Samraong Branch Office
Krang Lang Village, Cheung Kuon Commune,Samraong
District, Takeo province
Phone: 0888551219
Prey Kabas Branch Office
#408, St 108, Prey Lavea Ket Village, Prey Lavea
Commune,Prey Kabas district, Takeo povince
Phone: 0884839908
Kampot (Chhouk) Regional Office
National Road no. 3, Damnak Toap Khang Tboung
village, Krang Snay commune, Chhuk district, Kampot
province
Phone: 0974855014
Banteay Meas Branch Office
Samrong village, Samrong Krom commune, Banteay
Meas district, Kampot province
Phone: 0884844237
Angkor Chey Branch Office
Pral Village, Tani Commune, Angkor Chey
District,Kampot Province
Phone: 060855085
Kampong Trach Branch Office
Kampong Trach Ti Muoy Village, Kampong Trach Khang
Kaeut Commune, Kampong Trach District, Kampot
Province
Phone: 060855075
Kampong Speu Regional Office
# 85, national road #04, Borei Kammeakkar Village,
Rokar Thum Commune/Sangkat, Chbar Mon
Municipality/District/Khan, Kampong Speu Province
Phone: 066746666
Korng Pisey Branch Office
Tuol Ta Sokh Village, Saen Die Commune, Samraong
Tong District, Kampong Speu Province
Phone: 068855662
Veal Veaeng Branch Office
Pramaoy village, Pramaoy commune, Veal Veaeng
district, Pursat province
Phone: 0884845556
Kampong Thom Regional Office
House #009 Group 01 National Road no. 6, Stueng Saen
Village, Sangkat Kampong Krabao,Stoung Sen City and
Kampong Thom Province
Phone: 067855333
Oudong-1 Branch Office
Bat Doeung village, Khsem Khsan commune, Oudongk
district, Kampong Speu province
Phone: 060855776
Romlong Branch Office
Rom Chek Village,Treal Commune, Baray District,
Kompong Thom Province,
Phone: 060855388
Kraing Chek (Oudong II) Branch Office
Ta Ni village, Krang Chek Commune, Odongk District,
Kampong Speu province
Phone: 0884839856
Thporng Branch Office
Tranh Veaeng Village, Prambei Mum Commune, Thpong
District, Kampong Speu Province
Phone: 0884839945
Oral Branch Office
Phsar Kontourt village, Sangkea Sartorb Commune, Oral
district, Kampong Speu province.
Phone: 066574593
Phnum Sruoch Branch Office
Krang Khcheay village, Tang Sya commune, Phnum
Sruoch district, Kampong Speu province
Phone: 0884837957
Tuek Phors Branch Office
Srae Ta Chey Vallage, Akphivoadth Communce, Tuek
Phos District, Kampong Chhnang Province
Phone: 087777010
Kampong Chhnang Regional Office
National Road no.5, Tuol Kralanh village, Sangkat
Kampong Chhnang , Kampong Chhnang city, Kampong
Chhnang province
Phone: 0974855006
Stoung Branch Office
National Road no. 6, Leap Tong village, Kampong Chen
Tboung commune, Stoung district, Kampong Thom
province
Phone: 0884836778
Baray Branch Office
Prey Ta Trav Village, Balang Commune, Baray District,
Kampong Thom Province
Phone: 0713855039
Sandan Branch Office
Toekmleang village, Sandan commune, Sandan district,
Kampong Thom province
Phone: 0884827690
Prasat Sambour Branch Office
Sambo Village ,Sambo commune, Prasat Sambour
district, Kampong Thom province
Phone: 0884836883
Chamka Loeu Branch Office
Thnol Bek Lech Village, Svay Tearb Commune, Chamkar
Loeu District, Kampong Cham Province.
Phone: 0888472236
Battambang Regional Office
#99, No. 03, Mphey Osakphea village, Sangkat Svay Pao,
Battambang city, Battambang province
Phone: 066855022
Kampong Leaeng Branch Office
Kampong Boeng village, Kampong Hau commune,
Kampong Leng district, Kampong Chhnang province
Phone: 090855763
Banan Branch Office
Banan Village Kantueu Pir Commune, Banan District,
Battambang Province
Phone: 010855775
Kampong Tralach Branch Office
Soben Village, Peani Commune, Kampong Tralach
District, Kampong Chhnang Province
Phone: 090855820
Ratanak Mondul Branch Office
#34, Sdau village, Sdau Commune, Rotonak Mondol
distrcit, Battambang province
Phone: 010855977
Boribour Branch Office
Cheung Khnar Village, Ponley Communce, Boribour
District, Kampong Chhnang Province
Phone: 0886007498
Moung Ruessei Branch Office
Pou Muoy Village,Kear Commune, Moung Ruessei
District, Battambang Province
Phone: 069855585
Kampong Som Branch Office
Village no. 03, Sangkat Lak 02, Quarter, Metapheap
Ward, Preah Sihanouk City
Phone: 068855997
Pursat Branch Office
#475, National Road 5, Krang Pophleak Village, Svay At
Commune, Pursat District, Pursat province
Phone: 0886007540
Bakan Branch Office
Khnach Romeas Village, Beung Khnar Commune, Bakan
District, Pursat Province
Phone: 0886007538
Sre Ambel Branch Office
Trapeang village, Sre Ambel commune, Sre Ambel
district, Koh Kong province
Phone: 0884837124
Krakor Branch Office
National Road 5, Phsar village, Anlong Tnaot commune,
Krakor district, Pursat province
Phone: 0884838011
Pailin Branch Office
O’Tapuk Le village, Pailin commune, Pailin city, Pailin
province
Phone: 0884873724
360
Samlout Branch Office
Ou Tontuem village, Ta sanh commune, Samlout district,
Battambang province
Phone: 0884873767
Kratie Regional Office
Oreussey Village, Kratie Ward, Kratie City, Kratie
Province,
Phone: 0888848041
Samraong Chong Kal Branch Office
at Doun Kaen Village, Samraong Commune, Samraong
District, Oddar Meanchey province
Phone: 087666741
Kamrieng Branch Office
Dong Village, Boeng Reang Commune, Kamrieng
District, Battambang Province
Phone: 090309180
Chhloung Branch Office
Chrouy Thma Kraom village, Chhloung commune,
Chhloung district, Kratie province
Phone: 0888816546
Chi Kraeng Branch Office
#079, Group 01, Kampong Kdey1 Village, Kampong
Kdey Commune, Chikrek District, Siem Reap Province.
Phone: 087555474
Preah Vihear Regional Office
Lor Et village, Sangkat Kampong Branak, Preah Vihea
city, Preah Vihea province
Phone: 0884488844
Snuol Branch Office
Kbal Snuol Village, Snuol Commune, Snuol District,
Kratie Province
Phone: 0884818019
Kuleaen Branch Office
Kuleaen Tboung Village, Kuleaen Tboung commune,
Kuleaen district, Preah Vihear province
Phone: 0886007523
Keo Sema Branch Office
Ou Arm Village, Sre Khtom Commune, Keo Sema
District, Mondol Kiri Province
Phone: 0884818026
Sangkum Thmey Satellite Office
Tbeang Village, Chamraeun commune, Sangkom Thmei
district, Preah Vihear province
Phone: 060855749
Dambae Branch Office
National Road no. 73,Thnal village, Dambae commune,
Dambae district, Kampong Cham province
Phone: 0884843373
Rovieng Branch Office
Tang Trak Village, Robieb commune, Rovieng District,
Preah Vihear Province
Phone: 0884845242
Memot Branch Office
Masin Tuek Village, Memot Cummune, Memot District,
Kampong Cham Province
Phone: 0884381224
Trapaing Prasat Branch Office
Trapeang Prasat Village, Trapeang Prasat commune,
Trapeang Prasat District, Oddar Meanchey Province
Phone: 0884845248
Choam Khsant Branch Office
National Road 69B, Choam Khsant village, Choam
Khsant commune, Choam Khsant district, Preah Vihear
province
Phone: 0884845291
Banteay Mean Chey Regional Office
National Road no.6, Kampong Svay village, Sangkat
Kampong Svay, Serei Saophoan city, Banteay Mean
Chey province
Phone: 0884838900
Ou Chrov Branch Office
#15A, National Road no.5, Palilai village, Sangkat Paoy
Paet, Paoy Paet city, Banteay Mean Chey province
Phone: 0884845706
Kampong Cham Regional Office
National Road 7, village Boeng Snay, Kampong Cham
city, Kampong Cham province
Phone: 0884840089
Thma Puok Branch Office
Kasen village, Thma Puok commune, Thma Puok
district, Bantey Mean Chey province
Phone: 0884839749
Prey Chhor Branch Office
Doun Die village, Chrey Vean commune, Prey Chhor
district, Kampong Cham province
Phone: 0884842218
Bavel Branch Office
#15, st. Aksor Te, Bavel 1village, Bavel commune, Bavel
district, Battambang province
Phone: 090281942
Stoeung Trang Branch Office
Tnaot Ta Say Village, Preak Kak Commune, Stueng
Trang District, Kampong Cham Province.
Phone: 0884842804
Phnom Proek Branch Office
Phnum Toch village, Pech Chenda commune, Phnum
Proek district, Battambang province
Phone: 090855342
Chulkiri Branch Office
Prey Kri Tbong Village, Prey Kri commune, Chulkiri
district, Kampong Chhnang province
Phone: 0884839707
Siem Reap Regional Office
#76, National Road no. 6, Chong Kao Sou village,
Sangkat Slor Kram, Siem Reap city, Siem Reap province
Phone: 0884845477
Tbong Khmom Branch Office
National Road no. 7, Cheung Lang village, Sangkat
Suong, Suong city, Kampong Cham province
Phone: 0886007526
Puok Branch Office
Puok Chas Village, Puok Commune, Puok District, Siem
Reap Province
Phone: 0884836879
Koh Sotin Branch Office
Phsar Thmey Village, Pearm Pror Thnours Commune,
Koh Sotin District, Kampong Cham Province
Phone: 0883031098
Srey Snom Branch Office
Chroy Neang Nguon village, Chroy Neang Nguon
commune, Srey Snam district, Siem Reap province
Phone: 060270442
Ponhea Kraek Branch Office
National Road no. 7, Peao Srok village, Kaong Kang
commune, Ponhea Kraek district, Thbong Khmom
province
Phone: 0979111030
Angkor Chum Branch Office
Kbal Cham Village,Char Chhuk commune, Angkor Chum
District, Siem Reap Province.
Phone: 087555476
Preah Net Preah Branch Office
National Road 6, Phnum Chonhcheang village, Chob
Veari commune, Preah Netr Preah district, Banteay
Mean Chey province
Phone: 060855553
Phnom Penh (Tuol Kork) Regional Office
#152B2, St 516, 13 Village, Sangkat Boeung Kork 1,
Khan Toulkork, Phnom Penh.
Phone: 0719833384
Stueng Mean Chey Branch Office
No. 19 and 21 EoE1, Street Veng Sreng, Group 1,
Ruessei Commune, Sangkat Stueng Mean Chey, Khan
Mean Chey, Phnom Penh
Phone: 087888277
Punhea Lueu Branch Office
#87, National Road No. 5, Tep Pranom village, Vihea
Luong commune, Ponhea Lueu district, Kandal province
Phone: 0884843228
Mukh Kampoul Branch Office
La Edth Village, Preaek Dambang Commune, Mukh
Kampul District, Kandal Province
Phone: 0884842169
Khsach Kandal (Preaek Tameak) Branch Office
Knong village, Preaek Tameak commune, Khsach
Kandal district, Kandal province
Phone: 0884842027
Svay Pak Branch Office
National Road No. 5, Lu Village Svay Pak, Khan Russey
Keo, Phnom Penh
Phone: 0884845604
Chaom Chau Branch Office
Prey Svay Village, Sangkat Chaom Chau, Khan Pur
SenChey, Phnom Penh
Phone: 0884840208
Chruoy Changvar Branch Office
lot No. A-01, Street 6A, Phum 3, Sangkat Chrouy Chang
Var, Khan Chroy Chang Var, Phom Penh City
Phone: 0884841986
Srey Sonthor Branch Office
Santey village, Preaek Po commune, Srey Sonthor
district, Kampong Cham
Phone: 0884845245
Ratanakiri Regional Office
Chey Chumnas Village, sangkat Labanseak, City
Banlung, Ratanakiri Province
Phone: 0884830845
Stoeung Treng Branch Office
Spean Thmor Village, Stoeung Treng Commune,
Stoeung Treng District Stoeung Treng Province
Phone: 0713261010
Koh Nhek Branch Office
Reangsei village, Srae Sangkum commune, Kaoh
Nheaek district, Mondul Kiri province
Phone: 0713855124
361
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Borkeo Branch Office
Phum Muoy village, La Minh Commune, Bar Kaev
District, Ratanakiri Province,
Phone: 0713260505
Kean svay Branch
House No. 330, National Road 1, Toul Tnaot village,
Korkir Communce, Kien Svay district, Kandal province
Phone: 855-23-720-632
Kandal Stueng Branch
Land No. 5, St. 38, Svay Ming Village, Barku Commune,
Kandal Stueng District, Kandal Province
Phone: 855 024 900 066
Saen Monourom Branch Office
Chambak Village, Spean Mean Chey Commune, Saen
Monourom District, Mondul Kiri Province
Phone: 0713855100
Takhmao Branch
Building No. 31, National Road 2, Ta Khmau village,
Sangkat Ta Khmau, Krong Ta Khmau, Kandal Province.
Phone: 855-24-998-333
Odongk Branch
National Road No. 5, Mlu Meun Village, Phsar Daek
Commune, Ponhea Lueu District, Kandal Province
Phone: 855 024 900 077
Kampot Branch
Kampong Bay Khang Cheung Village, Kampong Bay
Sangkat, Kampot City, Kampot Province
Phone: 855-68-435555
PrekPhnov Branch
National Road 5, Phum Kandal, Sangkat Preaek Phnov,
Khan Preae Phnov, Phnom Penh.
Phone: 855-23-900-345
Kamchaymear Branch
National Road No. 8, Tean Phleung Village, Smaong
Khang Cheung Commune, Kamchay Mear District, Prey
Veng Province
Phone: 855-10-855747
Ang Snoul Branch
House No 183, National Road 4, Trapeang Krasang
Village, Baek Chan Commune, Angk Snuol District,
Kandal Province.
Phone: 855-023-999-355
Thmakoul Branch
National Road No. 5, Paoy Yong Village, Ta Pung
Commune, Thma Koul District, Battambang Province
Phone: 855-69-855755
Phsar Depo Branch
House No 138D, St 215, Sangkat Veal Vong, Khan
Prampir Meakkakra, Phnom Penh
Phone: 855-23-900-455
Mukh Kampul Branch
House No 271, National Road 6A, Kraom Village, Preaek
Anhchanh Commune, Mukh Kampul District,Kandal
Province.
Phone: 855 024 900 099
Europe
MesseTurm, 29th floor, Friedrich-Ebert-Anlage 49,
60308, Frankfurt am Main, Germany
Phone: +49(0)69 299 254 0
Khemarak Phoumin Branch
Street Khemara Phoumin, Group 7, Phum Ti Pir Village,
Sangkat Smach Mean Chey, Khemara Phoumin
Municipality, Koh Kong Province
Phone: 855-88-8558025
AreyKshat Branch
House No 76, Road No.380, Preaek Lvea Village , Preaek
Ta Kov Commune , Khsach Kandal District, Kanda!
Province.
Phone: 855-24 900-488
Overseas Office
Malaysia
Woori Bank Kuala Lumpur Representative Office
Unit 4129/4130, 41/F, Vista Tower, The Intermark 182
Jalan Tun Razak, Kuala Lumpur 50400, Malaysia
Phone: 60-3-2163-8288
Myanmar
Woori Bank Yangon, Myanmar Office
No.115(A) First Floor), Pyay Road, 10 Miles, Insein
Township, Yangon, Myanmar
Phone: 95-01-646951
Poland
Woori Bank Poland Represetative Office
Uniwersytecka 13, 40-007, Katowice, Poland
Phone: 48-323-076-417
Cheungprey Branch
National Road No.6 Skon Village, Soutlib Commune,
Cheung Prey District, Kampong Cham Province
Phone: 855-97-6447373
S’ang Brancch
House No 154, National Road 21, Preaek Khsev Village,
Rokar Khpos Commune, S’ang District, Kandal Province.
Phone: 855-24 901-455
Krolkor Branch
St 1 Thlok Village, Kraol kou Commune, Svay Chrum
District, Svay Rieng Province
Phone: 855-87-666945
Peraing Branch
National Road No.8, Snay Pol Village, Roka Commune,
Pea Reang District, PreyVeng Provice
Phone: 855-81-709967
Prey Nop Branch
Road No.4 Veal Meas Village, Veal Renh Commune,
Prey Nop District, Preah Sihanouk Province
Phone: 855-68-855997
Baphnom Branch
#022 St317 Chheu Kach Village, Chheu Kach Commune,
Ba phnom Distirict, Prey Veng Province
Phone: 855-93-855773
Koh Thom Branch
Kampong Svay Kraom Village, Preaek Thmei Commune,
Koh Thom District, Kandal Province
Phone: 855-87-777985
Chamkarmon Branch
Building No. 119B, Street271, Sangkat Phsar Doeum
Thkov Khan Chamkarmon, Phnom Penh.
Phone: 855-23-999-661
Russey Keo Branch
House No 1A, National Road 5, Phum Kraol Kou,
Sangkat Kilomet Lekh Prammuoy, Khan Russey Keo,
Phnom Penh.
Phone: 855-23-999-664
Pursenchey Branch
House No 6A, Russian Federation Blvd, Phum Ta Ngoun,
Sangkat Kakab, Khan Pur Senchey, Phnom Penh.
Phone: 855-23-999-803
362
Steung Meanchey Branch
House No 19A, Samdech Preah Monireth Blvd, Phum
Domnak Thum, Sangkat Stueng Meanchey 2, Khan
Meanchey, Phnom Penh
Phone: 855 23 901 345
Chom Chao Branch
House No 4A, Veng Sreng Blvd, Phum Chrey Kaong,
Sangkat Chaom Chau 2, Khan Pur Senchey, Phnom
Penh
Phone: 855 23 901 355
Char Ampov Branch
House No 610B, National road No 1, Deum Slaeng
Village, Sangkat Chbar Ampov Ti Pir, Khan Chbar
Ampov, Phnom Penh
Phone: 855 023 999 026
Toul Kork Branch
House No 1C, St 355, Phum 1, Sangkat Boeng Kak Ti
Muoy, Khan Tuol Kouk, Phnom Penh
Phone: 855 023 999 025
Chamkar Doung Branch
House No 2039, St 217, Ta lei Village, Sangkat Dangkao,
Khan Dangkao, Phnom Penh
Phone: 855 023 999 027
Kampongspeu Branch
House No 751, National Highway No 4, Chambak
Village, Voa Sar Commune, Samraong Tong District,
Kampong Speu Province.
Phone: 855 025 900 555
Pshar Dey Huy Branch
House No. 11, Phnom Penh-Hanoi Friendship Blv
(1019), Roung Chakr Village , Sangkat Kouk Kleang,
Khan Saensokh, Phnom Penh.
Phone: 855 023 900 466
Woori Card
(Tutu Finance_WCI Myanmar)
Head Office
Room 8, Block 6, Mingalar Mandalay, Between Thazin
Street and Ngu Shwe Wah Street, 73rd Street,
Chanmyatharsi Township, Mandalay
Phone: +95-22000219
Overseas Office
Yangon Office
No. 386/R 8, Sa Ward, Thudamar Street,
North Okkalapa Township, Yangon
Phone: +95-9420146551
Overseas Branch
Yesagyo Branch
No. 45, Pinlone Road, No.3 Ward, Yesagyo Township,
Magway
Phone: +95-9446944080
Madaya Branch
No. 2/1203, Yinn Mar Street , No. 2 Ward,
Madaya Township, Mandalay
Phone: +95-9400208299
Pyin Oo Lwin Branch
No. 2, 28th Street, Thumingalar, near Bazarr and
Thumingalar Football Studium, In Front of Thumingalar
Chapel, Pyin Oo Lwin Township, Mandalay
Phone: +95-9443365122
Patheingyi Branch
No. 19, 58st, Between 19th and 20th street, A Nate Taw
Quarter, Aungmyaytharzan Township, Mandalay
Phone: +95-9405243993
Wundwin Branch
No. 3, Myoma Ward, Myoma Street, Wundwin Township,
Mandalay
Phone: +95-9255450099
Kyaukse Branch
No. 83, Tal Soe Gate, Aye Mya Kyi Lin(East)Ward,
Railway Parallel Street, Kyaukse Township, Mandalay
Phone: +95-9400208422
Letpadan branch
No 57, Let Kok Pin, Myo Wart, Lan Ma Taw Street,
Letpadan
Phone: +95-9256923758
Kume Branch
TharyarAye Ward, Yangon-Mandalay Highway Road,
Near by B.E.H.S, Kume Township, Mandalay
Phone: +95-9251902656
Tharyarwaddy Branch
No. 204 , Yangon-Pyi Street(Lan Ma Taw) Middle Ward,
Thone Sae, Tharyarwaddy Township, Bago
Phone: +95-9400230933
Yamethin Branch
No. 179, Khwar Nyo Street, Thilawa-1 Ward, Yamethin
Township, Mandalay
Phone: +95-9898291199
Pakokku Branch
Corner of 4th Street and Myaing Street, Ward 11,
Pakokku Township, Magway
Phone: +95-9251902655
Shwebo Branch
Near by No.10 Kone Baung Market, Tap Myo Taung
3 Lane, Kyae Lat Office Street, Shwe Bo Township,
Sagging
Phone: +95-9899948011
Kanbalu Branch
No. 4 Ward, Near Myoma Market, Southern Part of Main
Road, Kanbalu Township, Sagaing
Phone: +95-9266362426
Salin Branch
No. 69/70, Maharthamainhtaw Streets, Pahtoephyu
Quarter, Salin Township, Magway
Phone: +95-9409701392
Pwintbyu Branch
No.1, Kantkaw Street, Ahlaepai Quarter, Pwintbyu
Township, Magway
Phone: +95-9406030200
Thazi Branch
No. 111, Ward-4, Htain Kan Quarter, Tharzi Township,
Mandalay
Phone: +95-9407217185
Chanmyathazi Branch
No. Sa-6, Owner No. 53-Ka, Myothit 2 Ward, Between
69th and 70th street, Between KhaingShweWah street &
ZalattWah Street, Chanmyathazi Township, Mandalay
Phone: +95-9977579424
Khin-U Branch
No. 353/354, Beside of Yae U-Khin U Road, Mya Kan
Thar Quarter, Khin-U Township, Sagaing
Phone: +95-9894747433
Pyawbwe Branch
No. 50, Ward-159, Yan Aung Streets, Shwe Pyi Yan Lone
Quarter, Pyawbwe Township, Mandalay
Phone: +95-9407217186
Taungtha Branch
No. 4/94, No.4 Quarter, 9th Street, Taungtha Township,
Mandalay
Phone: +95-9406030201
Kyaukpadaung Branch
Poppa-Myingyan Road, Nearby No.1 Bridge, Northern
Pyi Taw Thar Quarter, Kyaukpadaung Township,
Mandalay
Phone: +95-9964434368
Sagaing Branch
Owner No. 2, No.4 Ward, Ad Choke Su Street, Ad Choke
Su Quarter, Moe Zar Township, Sagaing
Phone: +95-9966767133
Myinmu Branch
No. 3/301, Kann Nar Street, Min Ye Kyaw Swar Ward,
Myinmu Township, Sagaing
Phone: +95-9984998602
Natogyi Branch
No(8) Quarter, Beside of Myin Gyan-Myit Thar Road,
Natogyi Township, Mandalay Division
Phone: +95-9660078906
Woori Asset Management
Head Office
Vietnam
Overseas Office
Woori Asset Management Hochiminh Representative
Office Suite 615-4, MeLinh Point, 2 Ngo Duc ke st., dist.1,
HCMC.
Phone: (84-28)-3520-2811
363
INTROWOORI OVERVIEWBUSINESS OPERATIONSFINANCIAL REVIEWWOORI FINANCIAL GROUP ANNUAL REPORT 2020 Contact Information
Directed by Hyunsoo, Ko
Senior Manager & IR Officer
Investor Relations Department, Woori Financial Group
TEL : 82-2-2125-2055
hyunsoo.ko@woorifg.com
Designed by Communication Dong-Gam
TEL : 82-2-593-7008 www.dong-gam.co.kr
51, Sogong-ro(203, Hoehyeon-dong 1-ga), Jung-gu, Seoul, 04632, Korea
Tel. 82+2-2125-2000 www.woorifg.com