 |
| Tae-Seung Son, Chairman of Woori Finance © News1 |
Woori Financial Group Chairman Son Tae-seung announced that he will continue to seek non-bank M&A (mergers and acquisitions) such as securities and insurance to expand the business portfolio of the comprehensive financial group this year. He also expressed that the financial industry, which was once called the cognitive industry, was expressed as an indie (human and digital compound word) industry, and said that he would devote all his efforts to platform innovation through digital transformation (DT).
In his New Year’s speech on the 4th, Chairman Son said, “It may not be easy for large-scale M&A in a short period of time due to the shrinking market environment due to Corona 19, but we will continue to strengthen the engine for group growth by seeking to expand our portfolio in various ways for the vacant non-banking sector within the group. “I said.
In particular, Chairman Son said, “While the financial market volatility increased due to the corona crisis last year and the money move of the banking sector accelerated, Woori Finance, which does not yet have a portfolio of securities/insurance, had to face a lot of difficulties, especially in the profitability sector.”
It also said that it will accelerate the digital transformation at the enterprise level using innovative technologies such as artificial intelligence (AI) and big data.
Chairman Son said, “The digital platform is the number one customer contact point for financial companies,” and said, “We need to innovate the platform through enterprise-wide digital transformation and become a digital number one financial group.”
He added, “In the past, the financial industry was called cognitive industry because it means that only people and documents are needed, but it is not an exaggeration to say that the current financial industry is a cutting-edge industry in which everything is done digitally with people, so that the expression of indie industry is more appropriate.”
The following is the full text of the New Year’s address of Woori Financial Group Chairman Son Tae-seung.
Dear families of Woori Financial Group!
2020, which was more special than any other year, has passed, and the new year of the new year (辛丑年) has dawned.
Just as smallpox, the worst infectious disease in human history, was conquered by the cowpox method, this year of the cow, the end of the corona era that put the world into a crisis, and we all hope to regain the preciousness of our daily lives. I wish you a new year.
2020 Review
Last year, in the face of an unprecedented crisis of corona, Woori Financial Group has put the safety of customers and employees first, and established an emergency management committee at the group level early to systematically respond to the crisis.
In particular, finance that takes the lead in overcoming national crises and fulfilling social responsibilities, such as providing various support in a timely manner in the financial and non-financial sectors, under the judgment that Corona 19 is spreading to the crisis of survival beyond the fear of infectious diseases to the small business and the vulnerable. It was recognized as a group.
However, in terms of financial performance, there were also some regrets.
Last year, as the financial market volatility increased due to the unexpected corona crisis and the money move of the banking sector accelerated, Woori Finance, which does not yet have a portfolio of securities/insurance, faced many difficulties, especially in the profitability sector.
Nevertheless, it was a great harvest to have a strong driving force to realize the group’s growth roadmap by stably raising the BIS ratio by receiving the approval of the internal grading law last year.
Based on this, Woori Financial Group has already raised capital in some subsidiaries and overseas subsidiaries in the second half of last year, and at the end of last year, new capital and savings banks were incorporated into the group, bringing new vitality to domestic and overseas business sites in 2021.
In the end, I think that 2020, the second year of the group’s inauguration, was a year of meaningful growth pains, finding a way to make a new leap forward while strengthening the group system.
2021 Financial Environment and Business Plan
Dear employees of Woori Financial Group!
Coronavirus in 2020 experienced a new level of crisis that we have never experienced, but 2021 is expected to be as chaotic as last year.
Some say that after Corona 19, all lifestyles will be newly transformed, and we must prepare for the’post corona era’.
On the one hand, the corona crisis is currently in progress, as they say that they will still live in the corona era for a while and that a’with corona’ response is necessary.
In particular, traditional financial groups like us are prolonged to coronavirus while the existing low-third phenomenon persists.
It is a reality that it is difficult to secure both soundness, profitability and growth potential in the same way as in the past.
Moreover, now that Untact has become a daily life, not a trend, existing financial groups are in a turning point in an era in which they have to worry about their survival and endless competition in the era of Big Blur who may not know who is the enemy.
Accordingly, Woori Financial Group sets the group’s management goal in 2021 as’Based on innovation and efficiency, and strengthening the group’s competitiveness’. Based on the six management strategies, we intend to create a new era for the group to transform dramatically in 2021.
The first key strategy is to expand the foundation for group growth.
The fact that we still have more business portfolios to fill in than our competitors means that our growth potential is great.
As the market environment has contracted due to Corona 19, it may not be easy to carry out large-scale M&As within a short period of time, but for the non-banking sector that is still vacant within the group, we will seek to expand our portfolio in various ways to continue strengthening the engine for group growth.
In addition, we hope that existing subsidiaries, including banks, reinforce the competitiveness of their core businesses and actively expand new sources of revenue to help build the foundation for the group’s growth.
The second strategy is’Leap to Digital No.1′.
In the past, the financial industry was called the cognitive industry, meaning that only people and documents were needed.
However, it is no exaggeration to say that the current financial industry is a cutting-edge industry where everything is done digitally with people, so that the expression of the indie industry fits better.
In particular, this year, with the full start of My Data and Comprehensive Payment Services, numerous big-tech and fintech companies will break down the barriers of the financial industry and compete for innovation with us.
Now, the digital platform is the number one customer contact point for financial companies. It is necessary to innovate the platform through enterprise-wide digital transformation using innovative technologies such as AI and big data and be reborn as a digital No.1 financial group.
The third strategy is’improving management efficiency’.
In these days when the business environment is uncertain, it is important to earn well, but maximizing cost efficiency is a priority.
In particular, compared to advanced financial companies as well as domestic financial groups, the CIR of Woori Finance is excessively high.
All subsidiaries, including holding companies, must carefully analyze and optimize human/material resources.
In addition, as we have reached the third year of the group system, it is necessary to enhance management efficiency by reinforcing the group’s major business synergies such as CIB and asset management.
The fourth strategy is to’strengthen brand and ESG management’.
In the past two years since the establishment of the holding company, we have successfully established a group system. Starting this year, we must also put our efforts to raise the brand value of’Woori Finance’ in order to solidify its position as a comprehensive financial group.
Under the new group vision of’a financial group that creates tomorrow’s value with today’s innovation’, let’s make it a year that imprints the face of our group transforming into customers and markets.
Also, ESG management is now the trend of the times.
Let’s become a financial group that creates a sustainable society by leading the creation of social and environmental values in finance in line with the government’s 2050 carbon neutrality and Korean New Deal policy.
The fifth strategy is to strengthen risk/internal control.
Market uncertainty has always increased in recent years, but it has never been so difficult to predict its direction as this year.
In the past year, many industries suffered from the coronavirus, but maybe the financial sector could have a bigger aftermath this year.
Potential risks should be thoroughly monitored in advance and the group’s investment assets should also be examined more closely.
In addition, this year, the Financial Consumer Protection Act is newly implemented. Problems arising from private equity funds last year caused a lot of concern to customers in the financial sector, mainly banks and securities companies.
Consumer protection and internal control are now recognized as essential prerequisites for business, and all group companies must have a complete internal control system.
The last and sixth strategy is’leading the global business’.
Since long ago, our group has been actively expanding its overseas network under the judgment that future competitiveness will be determined in the global market.
As a result, I believe that the Southeast Asian market has achieved a level of quantitative growth that enables stable local sales.
Now, it is time to reap the seeds that have been sown hard and bear fruit.
In the wake of the corona crisis, we need an innovative strategy to increase profitability while expanding channels by expanding localized sales digitally in overseas markets.
2021 will be an important turning point for becoming a leading financial company in major Southeast Asian countries such as Vietnam.
Closing words
Dear Woori Financial Group Families!
It is often said that crisis is an opportunity whenever there are many crisis situations.
However, in order to turn a crisis into an opportunity, we must have the ability to overcome crises based on drastic change and innovation.
There is an expression’Resilience’.
In the past, it was used as a meaning of’recovery resilience’ in physics and ecology, and in recent years, it is an essential competency for companies.
Just as a spring contracted by an external shock bounces stronger than it was through its strong vitality, only an innovative company that quickly grasps rapidly changing external flows, filters risks and discovers new opportunities can make a bigger leap forward.
Corona 19 is a big crisis for all of us, and at the end of the tunnel of crisis, there may be a competition for survival, not a ranking competition between those who are ready and those who are not. In 2021, I look forward to seeing our family members show stronger determination and strong passion than ever before with the mindset of an emergency management system all year round.
In the third year of the group system, under the new vision of’a financial group that creates tomorrow’s value with today’s innovation’, all the group companies including the holding company will boldly innovate, We hope that each company’s goal, and furthermore, the group’s goal.
Like the slogan we created together, all groups become one and become the’first finance in our heart’ for customers,
Let’s create the year 2021 in which we radiate the strong energy that had been condensed last year and rebound to a higher place than where we existed.
Perhaps the greatest lesson we have learned over the past 2020 is that the daily life of being healthy with family and colleagues is more important than anything else.
In the new year of 2021, I wish all the employees of Woori Financial Group, their families, and all customers who care for and love us, always healthy and happy.
Thank you.