SEOUL, KOREA - Nonghyup Financial Group will become the new owners of three financial service firms including Woori Investment & Securities, Woori Aviva Life, and Woori FG Savings Bank. In addition, Woori Asset Management will be acquired by Kiwoom Securities.

 

On December 24, Woori Financial Group selected Nonghyup Financial Group as the preferred negotiating partner in a block deal to sell off its three financial units. Separately it decided to select Kiwoom Securities as the preferred negotiating partner for taking over Woori Asset Management.

 

Nonghyup and Kiwoom will perform due diligence for about two weeks from the 26th and sign a formal sales and purchase agreement until the end of January. Once Nonghyup Financial Group acquires the three units, its total assets would rise to 288 trillion won from 255 trillion won now, becoming large enough to compete neck-and-neck with top-four financial holding companies such as KB Financial and Shinhan Financial.

 

Yim Jong-yong, Nonghyup Financial Group chairman, said, "I am thankful for the board of directors of Woori Financial Group who were instrumental in successfully closing the deal by adhering to rules and fairness." A Woori Financial officer said, "We selected the preferred negotiating partners by assessing all factors including non-price ones such as how to procure funds, contractual requirements, post-acquisition managerial ability, and so on."