Woori Financial Group has received conditional approval from the Financial Services Commission (FSC) to incorporate Dongyang Life Insurance and ABL Life Insurance as its subsidiaries. The approval, granted during the FSC’s 8th regular meeting on May 2, is contingent upon the faithful implementation of internal control improvement plans and mid-to-long-term capital management plans by the end of 2027.
Conditional Approval Details
The Financial Supervisory Service will monitor Woori Financial’s implementation semi-annually and report to the FSC once a year. This decision is significant as it represents an exceptional approval given to Woori Financial, which currently holds a management assessment rating of 3.
Regulatory Framework
The current Financial Holding Company Supervision Regulations require a “rating of 2 or higher” in the comprehensive management assessment for subsidiary incorporation approval. However, the regulations allow the FSC to recognize a sound management status if it determines that the requirements can be met through measures such as capital increase or disposal of non-performing assets.
Implications for Woori Financial
With this approval, Woori Financial has secured an opportunity to expand its non-banking portfolio and become a key player in reshaping the life insurance industry landscape. However, the implementation of internal control measures is expected to be a crucial factor in future evaluations.
