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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL, May 27 — Woori Bank is facing mounting pressure from losses at its overseas subsidiaries, highlighting growing risks in its global operations.
According to industry data, Woori Bank’s foreign units posted a net loss of KRW 63.0 billion in the first quarter, in contrast to solid earnings reported by peers such as KB Kookmin Bank and Hana Bank.
The downturn was largely driven by its Indonesian unit, which recorded significant losses after setting aside large provisions to address potential credit risks. Additional losses were reported in Cambodia and Brazil, while asset impairments were recognized across several overseas subsidiaries, reflecting a reassessment of profitability and growth prospects.
Legal disputes and regulatory penalties have further added to the burden. The Indonesian subsidiary is involved in a major trade-related lawsuit, while the Chinese unit has faced fines due to compliance failures.
Industry analysts say Woori Bank’s overseas business is entering a phase where risk management and operational quality are becoming more critical than expansion. Ongoing losses could weigh on capital ratios and limit shareholder returns, posing challenges for the group’s broader strategy of global diversification and non-banking expansion.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
