Woori Financial Group has been granted approval to incorporate Dongyang Life Insurance and ABL Life Insurance as its subsidiaries.
The Financial Services Commission (FSC) held its 8th regular meeting on May 2 and conditionally approved the acquisition. The approval is contingent upon the faithful implementation of internal control improvement plans and mid-to-long-term capital management plans by the end of 2027. The Financial Supervisory Service is required to monitor the implementation semi-annually and report to the FSC once a year.
This decision is noteworthy as it represents an exceptional approval granted to Woori Financial, which currently holds a management assessment rating of 3. The current Financial Holding Company Supervision Regulations stipulate that a “rating of 2 or higher” in the comprehensive management assessment is a requirement 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.
The FSC conducted a comprehensive review of the relevant clause’s wording, intent, and substantive judgment criteria through four rounds of agenda review subcommittee discussions. The FSC interpreted that “in addition to financial measures, improvement plans for non-financial areas such as internal control and governance structure can also be considered as factors in assessing management soundness,” ultimately approving Woori Financial’s subsidiary incorporation.
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.
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