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Photo: Financial Supervisory Service (FSS) |
[Alpha Biz= Kim Sangjin] The Financial Supervisory Service (FSS) will announce the results of its inspections on major financial holding companies, including Woori Financial Group and banks, on February 4.
According to an announcement made to the press on Thursday, the FSS stated that a briefing on the "2024 Financial Holding and Bank Major Inspection Results" will be held at 10 a.m. on that day.
The briefing will cover the results of the regular inspections conducted last year on Woori, KB, and NongHyup Financial Groups, as well as the relevant banks. FSS Governor will make the opening remarks, and Park Chung-hyun, Vice Governor in charge of banking, will conduct the Q&A session after the briefing.
There is significant attention from the financial sector on the inspection results of Woori Financial Group and its banks. The FSS had conducted regular inspections on Woori Financial Group and Woori Bank from October to December last year and had planned to announce the results in December, but the release was delayed due to the aftermath of a state of emergency.
It was later postponed to early January and is now rescheduled for February 4. In November last year, the FSS Governor indicated that improper loans had been issued during the tenure of Woori Financial Group's current chairman, Lim Jong-ryong, increasing pressure on the company. Notably, when the first delay was announced, the governor remarked that the delay was to "make it known to the market and the public in a strict manner."
Woori Bank is under investigation by the prosecution for granting improper loans, totaling hundreds of billions of KRW, to corporations or individual businesses related to the family members of the former chairman, Son. The FSS has stated that in addition to the improper loans, it had thoroughly inspected Woori Financial Group's capital ratios, asset soundness, internal controls, risk management, and governance.
The results of the regular inspections will serve as the basis for the financial authorities' evaluation of potential risks in Woori Financial Group's new business ventures, such as the acquisition of Dongyang and ABL Life, and whether the group maintains proper capital ratios and risk management practices.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
