6-K 1 d54985d6k.htm FORM 6-K Form 6-K
Table of Contents

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2020

Commission File Number: 001-31811

 

 

Woori Financial Group Inc.

(Translation of registrant’s name into English)

 

 

51, Sogong-ro, Jung-gu, Seoul, 04632, Korea

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F    ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 


Table of Contents


Table of Contents

Summary of 2020 Third Quarter Business Report

Table of Contents

 

I.

  INTRODUCTION OF THE COMPANY      5  
  1.   Overview of the Company      5  
  2.   Capital Structure (Changes in Capital)      7  
  3.   Total Number of Authorized Shares      7  
  4.   Voting Rights      8  
  5.   Dividend Information      8  

II.

  BUSINESS OVERVIEW      9  
  1.   Results of Operations      9  
  2.   Funding Sources and Uses of Funds      9  
  3.   Other Information Necessary for Making Investment Decisions      11  

III.

  FINANCIAL INFORMATION      15  
  1.   Condensed Financial Statements (Consolidated)      15  
  2.   Condensed Financial Statements (Separate)      17  

IV.

  INDEPENDENT AUDITOR’S OPINION      19  
  1.   Independent Auditor’s Opinion      19  
  2.   Compensation to the Independent Auditor      19  
V.   CORPORATE GOVERNANCE AND AFFILIATED COMPANIES      21  
  1.   About the Board of Directors      21  
  2.   Affiliated Companies (As of September 30, 2020)      22  

VI.

  SHAREHOLDER INFORMATION      23  
  1.   Share Distribution      23  
  2.   Stock Price and Stock Market Performance      24  

VII.

  DIRECTORS AND EMPLOYEE INFORMATION      26  
  1.   Directors and Executives      26  
  2.   Employee Status      27  
  3.   Directors’ Compensation      27  

 

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Except where indicated otherwise, financial information contained in this document (including the attached financial statements) has been prepared in accordance with the Korean equivalent of International Financial Reporting Standards (“Korean IFRS”), which differ in certain important respects from generally accepted accounting principles in the United States.

All references to “Woori Financial Group,” “we,” “us” or the “Company” are to Woori Financial Group Inc. and, unless the context requires otherwise, its subsidiaries. In addition, all references to “Won” or “KRW” in this document are to the currency of the Republic of Korea.

 

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I.    Introduction of the Company

1.   Overview of the Company

a.   History

January 11, 2019

   Establishment of the Company pursuant to a comprehensive stock transfer, by which Woori Bank, Woori FIS, Woori Finance Research Institute, Woori Credit Information, Woori Fund Services and Woori Private Equity Asset Management became wholly-owned subsidiaries of the Company.

February 13, 2019

   Listed on the Korea Exchange (KRX).

April 5, 2019

   Entered into share purchase agreements to acquire Tongyang Asset Management Corp. and ABL Global Asset Management Co., Ltd.

June 21, 2019

   Entered into a purchase agreement with Woori Bank to acquire the common shares of Woori Investment Bank Co., Ltd. (“Woori Investment Bank”) and integrate Woori Investment Bank as a first-tier subsidiary of the Company (Buyer: Woori Financial Group, Seller: Woori Bank)

July 3, 2019

   Entered into a stock exchange agreement between the Company and Woori Card Co., Ltd (“Woori Card”) to integrate Woori Card as a first-tier subsidiary of the Company

July 25, 2019

   Entered into a share purchase agreement to acquire Kukje Asset Trust, Ltd.

August 1, 2019

   Integrated Woori Asset Management Corp. (formerly known as Tongyang Asset Management Co., Ltd.) as a first-tier subsidiary of the Company.

September 10, 2019

   Integrated Woori Card and Woori Investment Bank as first-tier subsidiaries of the Company.

September 26, 2019

   Disposed 4% of common shares of the Company held by Woori Bank to a Taiwanese company, Fubon Life Insurance Co., Ltd.

December 6, 2019

   Integrated Woori Global Asset Management Corp. as a first-tier subsidiary of the Company

December 30, 2019

   Integrated Woori Asset Trust Ltd., as a first-tier subsidiary of the Company

March 25, 2020

   Held the first annual general meeting of shareholders of Woori Financial Group; reappointed the Chief Executive Officer

 

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b.

Affiliated Companies

 

  (1)

Overview of Business Group

 

  1.

Name of business group: Woori Financial Group Inc.

 

  (2)

Affiliated companies within the business group

As of September 30, 2020

 

Type

  

Name of Company

  

(Controlling Company)

Company    Woori Financial Group    —  

First Tier Subsidiaries

    (11 companies)

   Woori Bank (equity ownership 100.0%)    Woori Financial Group
   Woori Card (equity ownership 100.0%)
   Woori Investment Bank (equity ownership 59.83%)
   Woori FIS (equity ownership 100.0%)
   Woori Finance Research Institute (equity ownership 100.0%)
   Woori Credit Information (equity ownership 100.0%)
   Woori Fund Services (equity ownership 100.0%)
   Woori Asset Trust (equity ownership 51.0)%
   Woori Asset Management (equity ownership 73.0%)
   Woori Private Equity Asset Management (equity ownership 100.0%)
   Woori Global Asset Management (equity ownership 100.0%)

Second Tier Subsidiaries

    (14 companies)

   Korea BTL Infrastructure Fund (equity ownership 99.88%)    Woori Bank
   Woori America Bank (equity ownership 100.0%)
   Woori Bank China Limited (equity ownership 100.0%)
   PT. Bank Woori Saudara Indonesia (equity ownership 79.88%)
   AO Woori Bank (equity ownership 100.0% - 1 share)
   Banco Woori Bank do Brazil S.A. (equity ownership 100.0% - 1 share)
   WB Finance Co., Ltd (Cambodia) (equity ownership 100.0%)
   Woori Finance Myanmar (equity ownership 100.0%)
   Woori Wealth Development Bank (equity ownership 51%)
   Woori Bank Vietnam Limited (equity ownership 100.0%)
   Woori Bank Europe Gmbh (equity ownership 100.0%)
   Woori Global Markets Asia Limited (equity ownership 100.0%)
   Tutu Finance-WCI Myanmar (equity ownership 100.0%)    Woori Card
   Woori-Hanwha Eureka Private Equity Fund (equity ownership 0.80%)    Woori Private Equity Asset Management

Note 1) Listed Companies : Woori Financial Group, Woori Investment Bank and PT. Bank Woori Saudara Indonesia

 

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2.

Capital Structure (Changes in Capital)

 

As of September 30, 2020           (units: Won, shares)
            Stock Decrease/Increase

Date

   Category      Type      Quantity      Par
Value
     Issue
price
     Note

January 11, 2019

     —          Common        680,164,306        5,000        26,415      Establishment

(comprehensive stock transfer)

September 10,

2019

     —          Common        42,103,377        5,000        12,350      Comprehensive stock exchange

Stock increase ratio: 6.19018%

Note 1) Due to Woori Financial Group’s establishment through a comprehensive stock transfer, the issue price was calculated by dividing the total equity from its financial statements at the time of establishment (KRW 17,966,458,911,689) by the total number of issued shares (680,164,306).

Note 2) Our capital in 2019 3Q changed due to the comprehensive stock exchange. The issue price is based on the closing stock price of the comprehensive stock exchange date.

 

3.

Total Number of Authorized Shares

 

As of September 30, 2020           (unit: shares)  

Items

   Type      Notes  
   Common Shares      Total  

Number of authorized shares

     4,000,000,000        4,000,000,000        —    

Number of issued shares

     722,267,683        722,267,683        Note 1

Number of treasury shares

     2        2        Note 2

Number of outstanding shares

     722,267,681        722,267,681        —    

Note 1) New common shares of 42,103,377 were issued on September 10, 2019 due to the small scale stock exchange between Woori Financial Group and Woori Card.

Note 2) Acquired from the issuance of fractional shares

 

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4.

Voting Rights

 

As of December 31, 2019           (unit: shares)  

Items

          Number of
shares
     Notes  

Number of issued shares

     Common Shares        722,267,683        —    
     Preferred Shares        —          —    

Number of shares without voting rights

     Common Shares        2        Note 1
     Preferred Shares        —          —    

Number of shares for which voting rights are excluded pursuant to the articles of incorporation

     Common Shares        —          —    
     Preferred Shares        —          —    

Number of shares for which voting rights are limited by law

     Common Shares        11,669,293        Note 2
     Preferred Shares        —          —    

Number of shares for which voting rights have been restored

     Common Shares        —          —    
     Preferred Shares        —          —    

Number of shares for which voting rights may be exercised

     Common Shares        710,598,388        —    
     Preferred Shares        —          —    

Note 1) Acquired treasury shares from the issuance of fractional shares (based on Article 369 of the Commercial Act).

Note 2) Pursuant to Article 8-2 of the Financial Holding Company Act, a non-financial business operator is restricted from exercising voting rights in excess of 4% of the total number of outstanding voting shares of a financial holding company.

 

5.

Dividend Information

Woori Financial Group was established on January 11, 2019.

 

Items

     2020 3Q      2019      2018  

Par value per share (Won)

 

     —          5,000        —    

Net profit (Millions of Won)

 

     —          1,872,207        —    

Earnings per share (Won)

 

     —          2,727        —    

Total cash dividends (Millions of Won)

 

     —          505,587        —    

Total stock dividends (Millions of Won)

 

     —          —          —    

Cash dividend payout ratio (%)

 

     —          27.00        —    

Cash dividend yield (%)

     Common Shares        —          5.8        —    
     Preferred Shares        —          —          —    

Stock dividend yield (%)

     Common Shares        —          —          —    
     Preferred Shares        —          —          —    

Cash dividend per share (Won)

     Common Shares        —          700        —    
     Preferred Shares        —          —          —    

Stock dividend per share (Share)

     Common Shares        —          —          —    
     Preferred Shares        —          —          —    

Note 1) There were no board resolutions regarding dividends during 2020 3Q.

 

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II.

Business Overview

 

1.

Results of Operations

 

As of September 30, 2020    (unit: billions of Won)  

Type

   2020 3Q      2019      2018  

Operating income

     1,848        2,800        —    

Non-operating income

     -138        -77        —    

Income from continuing operations before income tax

     1,710        2,723        —    

Income tax expense from continuing operations

     414        685        —    

Income from discontinued operations

     —          —          —    

Net income

     1,296        2,038        —    

Controlling Interest

     1,141        1,872        —    

Non-controlling Interest

     155        165        —    

Note 1) Based on K-IFRS consolidated financial statements

 

2.

Funding Sources and Uses of Funds

 

a.

Sources of Funds

 

For the periods indicated other than as noted below                    (units: millions of Won, %)  

Classification

   Funding Source    2020 3Q      2019  
   Average
Balance
     Interest
Rate
     Proportion      Average
Balance
     Interest
Rate
     Proportion  

Source

   Deposits      260,793,336        1.15        71.57        249,106,041        1.51        71.14  
   Borrowings      19,515,819        1.45        5.36        18,013,074        1.92        5.14  
   Debentures      30,989,756        2.29        8.50        30,401,987        2.56        8.68  
   Others      27,296,291        —          7.49        28,928,780        —          8.26  
   Total Liabilities      338,595,201        —          92.92        326,449,882        —          93.23  

Total Equity

     25,814,440        —          7.08        23,703,431        —          6.77  

Total Liabilities & Equity

     364,409,642        —          100.00        350,153,313        —          100.00  

Note 1) 2020 3Q Average Balance: average of balances as of December 31, 2019, March 31, 2020, June 30, 2020 and September 30, 2020.

 2019 Average Balance: average of balances as of March 31, 2019, June 30, 2019, September 30, 2019 and December 31, 2019.

Note 2) Based on K-IFRS consolidated financial statements

 

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b. Use of Funds

 

For the periods indicated other than as noted below                    (units: millions of Won, %)  

Type

   Managed Item   2020 3Q      2019  
  Average
Balance
     Interest
Rate
     Proportion      Average
Balance
     Interest
Rate
     Proportion  

Use

   Cash & Due from Banks     11,688,934        0.49        3.21        9,202,054        1.55        2.63  
   Marketable securities     54,297,919        1.96        14.90        50,396,362        2.29        14.39  
   Loans     265,296,005        3.05        72.80        254,691,201        3.48        72.74  
       Loans in local currency     228,924,743        2.80        62.82        219,418,214        3.22        62.66  
       Loans in foreign currency     22,701,742        4.08        6.23        20,982,894        4.59        5.99  
       Guarantee payments     11,981        5.48        0.00        12,410        1.48        0.00  
       Credit card receivables     8,125,894        7.94        2.23        8,139,789        7.98        2.32  
       Foreign bills bought     5,531,644        1.77        1.52        6,137,894        2.96        1.75  
   Bad debt expense in local currency (-)     -1,662,486        —          -0.46        -1,666,215        —          -0.48  
   Other     34,789,270        —          9.55        37,529,911        —          10.72  

Total Assets

       364,409,642        —          100.00        350,153,313        —          100.00  

Note 1) 2020 3Q Average Balance: average of balances as of December 31, 2019, March 31, 2020, June 30, 2020 and September 30, 2020.

   2019 Average Balance: average of balances as of March 31, 2019, June 30, 2019, September 30, 2019 and December 31, 2019.

Note 2) Based on K-IFRS consolidated financial statements

 

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3.

Other Information Necessary for Making Investment Decisions

 

a.

Selected Ratios

Group BIS Capital Adequacy Ratios

 

As of the end of the period indicated    (units: billions of Won, % )  

Type

   2020 3Q      2019  

Equity capital (A)

     27,261        27,115  

Risk weighted assets (B)

     191,562        228,046  

BIS(Capital adequacy) ratio (A/B)

     14.23        11.89  

Note 1) BIS (Bank for International Settlements) Capital Adequacy Ratios : Equity capital / Risk weighted assets * 100

Note 2) Based on K-IFRS consolidated financial statements and Basel III standards

Note 3) 2019 figures based on Standardised Approach / 2020 3Q figures based on IRB Approach

Note 4) 2020 3Q figures reflect the adoption of the Basel III credit risk framework

Note 5) 2020 3Q figures are estimates only and are subject to change

Figures of Affiliated Companies

 

As of the end of the periods indicated         (units: 100 millions of Won, % )  

Name of Company

   Type    2020 3Q      2019      2018  

Woori Bank

   BIS ratio    Equity capital (A)      260,795        243,142        242,508  
   Risk weighted assets (B)      1,478,668        1,578,895        1,549,710  
   Capital adequacy ratio (A/B)      17.64        15.40        15.65  

Woori Card

   Adjusted capital ratio      20.36        18.33        18.08  
   Tangible common equity ratio      14.00        14.29        13.54  

Woori Investment Bank

   BIS ratio    Equity capital (A)      3,902        3,381        3,003  
   Risk weighted assets (B)      30,251        26,303        23,192  
   Capital adequacy ratio (A/B)      12.90        12.86        12.95  

Woori Asset Trust

   Operating capital ratio      1,225.91        1,397.97        957.76  

Woori Asset Management

   Minimum operating capital ratio      723.57        655.8        558.9  

Note 1) BIS (Bank for International Settlements) Capital Adequacy Ratio : Equity capital / Risk weighted assets * 100

Note 2) Figures for Woori Bank are based on K-IFRS consolidated financial statements and Basel III standards

Note 3) Figures for Woori Card are based on the applicable standards for business reports submitted to the Financial Supervisory Service

Note 4) Figures for Woori Investment Bank are based on the applicable standards for business reports submitted to the Financial Supervisory Service and our K-IFRS consolidated financial statements

Note 5) Figures for Woori Asset Trust are based on K-IFRS separate financial statements

Note 6) Figures for Woori Asset Management are based on K-IFRS separate financial statements

Note 7) 2020 3Q figures are estimates only and are subject to change

 

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Won Liquidity Ratios

 

As of the end of the periods indicated                                         (units: millions of Won, % )  

Type

   2020 3Q      2019      2018  
   Won
Liquidity
Assets
     Won
Liquidity
Liabilities
     Won
Liquidity
Ratio
     Won
Liquidity
Assets
     Won
Liquidity
Liabilities
     Won
Liquidity
Ratio
     Won
Liquidity
Assets
     Won
Liquidity
Liabilities
     Won
Liquidity
Ratio
 

Woori Financial Group

Note 1)

     426,755        31,541        1,353.0        45,079        7,475        603.1           —       

Woori Card

Note 2)

     5,977,320        1,610,221        371.2        5,976,031        1,407,335        424.6        6,055,752        1,349,874        448.6  

Woori Investment Bank

Note 2)

     2,323,693        1,088,701        213.4        1,671,823        1,118,318        149.5        1,183,476        444,475        266.3  

Woori Asset Trust

Note 3)

     93,502        11,537        810.5        67,555        14,595        462.9        61,161        9,411        649.9  

Note 1) Based on current assets and liabilities within one month of maturity.

Note 2) Based on current assets and liabilities within 90 days of maturity.

Note 3) Based on K-IFRS separate financial statements as well as current assets and liabilities within 90 days of maturity.

Foreign Currency (FC) Liquidity Ratios

 

As of the end of the periods indicated                                         (units: millions of Won, % )  

Type

   2020 3Q      2019      2018  
   FC
Liquidity
Assets
     FC
Liquidity
Liabilities
     FC
Liquidity
Ratio
     FC
Liquidity
Assets
     FC
Liquidity
Liabilities
     FC
Liquidity
Ratio
     FC
Liquidity
Assets
     FC
Liquidity
Liabilities
     FC
Liquidity
Ratio
 

Woori Investment Bank

Note 1)

     1,594        —          —          38,111        34,734        109.7        82,633        78,104        105.8  

Note 1) Based on current assets and liabilities within three months of maturity.

 

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Liquidity Coverage Ratios

 

       (unit: % )  

Name of Company

  

Type

   2020 3Q      2019      2018  

Woori Bank

  

Liquidity coverage ratio Note 1)

     93.46        107.27        103.40  
  

Foreign currency liquidity coverage ratio Note 2)

     108.94        110.50        108.98  
  

Ratio of business purpose premises and equipment

     11.44        12.22        12.34  

Note 1) Method of calculation based on business disclosure (average of daily ratios for business days in a quarter), periods applicable are 2020 3Q, 2019 4Q and 2018 4Q

 

-

Under the [Plans for Temporary Easing of Financial Regulations in Response to COVID-19] announced by the Financial Services Commission, the liquidity coverage ratio requirement for banks has been reduced from 100% to 85% until the end of March 2021.

Note 2) Implemented in January 2017 (increased 10% annually; current minimum ratio is 80% in 2019); method of calculation of average LCR based on business disclosure

Periods applicable are 2020 3Q, 2019 4Q and 2018 4Q; foreign currency liquidity coverage ratio for each month during the current quarter : July : 111.14%, August : 111.40%, September : 104.36%

Profitability Ratios

 

                    (unit: % )  

Type

   2020 3Q      2019      2018  
   ROA      ROE      ROA      ROE      ROA      ROE  

Woori Financial Group Note 1)

                 

Including non-controlling interests

     0.46        7.82        0.57        10.11        —    

Excluding non-controlling interests

     0.41        6.88        0.52        9.29        —    

Woori Bank Note 2)

     0.43        6.58        0.55        8.36        0.60        8.82  

Woori Card Note 2)

     1.21        6.54        0.90        5.05        0.72        4.00  

Woori Investment Bank Note 2)

     1.66        14.91        1.69        13.66        1.30        10.49  

Woori Asset Trust Note 3)

     23.61        33.73        25.18        37.40        28.73        49.43  

Woori Asset Management

     5.92        6.20        7.41        7.77        6.06        6.32  

Note 1) On an annualized basis based on the applicable standards for financial holding company business reports submitted to the Financial Supervisory Service. Average Balance of total assets and equity calculated by averaging the balances at the beginning and end of each quarter (2019: March 31, 2019, June 30, 2019, September 30, 2019 and December 31, 2019). Note 2) Based on the applicable standards for business reports submitted to the Financial Supervisory Service

Note 3) Non-consolidated basis: total assets and total equity are average balances of end of previous year end and each quarter ending balances.

 

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Group Asset Quality

 

     (units: billions of Won, % )  

Type

   2020 3Q      2019      2018  

Total loans

     285,248        266,432        —    

Substandard and below loans

     1,138        1,198        —    

Substandard and below ratio

     0.40        0.45        —    

Non-Performing Loans

     1,029        1,068        —    

NPL Ratio

     0.36        0.40        —    

Substandard and below coverage ratio (A/B)

     151.9        133.6        —    

Loan Loss reserve (A)

     1,728        1,600        —    

Substandard and below loans (B)

     1,138        1,198        —    

Note 1) Based on the applicable standards for financial holding company business reports submitted to the Financial Supervisory Service

Asset Quality for Significant Subsidiaries and Consolidated Companies

 

                                                             (units: % )  

Type

   2020 3Q      2019      2018  
   Substandard
and below
ratio
     NPL
ratio
     Substandard
and below
coverage
ratio
     Substandard
and below
ratio
     NPL
ratio
     Substandard
and below
coverage
ratio
     Substandard
and below
ratio
     NPL
ratio
     Substandard
and below
coverage
ratio
 

Woori Bank

     0.34        0.32        151.10        0.40        0.36        121.80        0.51        0.43        119.42  

Woori Card

     0.70        —          102.77        0.80        —          102.84        0.80        —          104.02  

Woori Investment Bank

     0.32        0.12        241.03        0.49        0.21        167.39        1.51        1.49        51.21  

Woori Asset Trust

     62.53        —          —          37.51        —          —          10.52        —          —    

Note 1) Based on the applicable standards for company business reports submitted to the Financial Supervisory Service

 

14


Table of Contents
III.

Financial Information

 

1.

Condensed Financial Statements (Consolidated)

Summary Consolidated Statement of Financial Position

 

(The Company and its Consolidated Subsidiaries, as of the end of the periods indicated)          (unit: millions of Won)  

Classification

   2020 3Q     2019     2018  

ASSETS

      

Cash and cash equivalents

     8,814,244       6,392,566       6,747,894  

Financial assets at fair value through profit or loss (“FVTPL”)

     10,565,822       8,069,144       6,126,316  

Financial assets at fair value through other comprehensive income

     29,644,347       27,730,531       18,063,423  

Securities at amortized cost

     17,889,922       20,320,539       22,932,559  

Loans and other financial assets at amortized cost

     307,778,061       293,717,693       282,457,578  

Investments in joint ventures and associates

     1,076,855       806,360       361,766  

Investment properties

     311,344       280,239       378,196  

Premises and equipment

     3,278,633       3,364,716       2,450,492  

Intangible assets

     799,803       844,110       597,520  

Assets held for sale

     59,899       10,556       17,912  

Net defined benefit asset

     —         2,582       —    

Current tax assets

     74,130       47,367       20,730  

Deferred tax assets

     36,860       39,544       59,641  

Derivative assets (designated for hedging)

     228,580       121,131       35,503  

Other assets

     280,411       233,646       197,653  
  

 

 

   

 

 

   

 

 

 

Total assets

     380,838,911       361,980,724       340,447,183  
  

 

 

   

 

 

   

 

 

 

LIABILITIES

      

Financial liabilities at FVTPL

     3,817,831       2,958,302       2,282,686  

Deposits due to customers

     278,588,976       264,685,578       248,690,939  

Borrowings

     22,768,493       18,998,920       16,202,986  

Debentures

     29,964,791       30,858,055       28,735,862  

Provisions

     463,198       443,980       391,313  

Net defined benefit liability

     186,044       92,470       173,109  

Current tax liabilities

     129,537       182,690       159,078  

Deferred tax liabilities

     286,705       134,322       18,156  

Derivative liabilities (designated for hedging)

     23,039       6,837       51,408  

Other financial liabilities

     17,941,940       17,706,767       21,442,524  

Other liabilities

     459,607       420,471       346,078  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     354,630,161       336,488,392       318,494,139  
  

 

 

   

 

 

   

 

 

 

EQUITY

      

Owners’ equity:

     22,753,163       21,510,370       21,739,931  

Capital stock

     3,611,338       3,611,338       3,381,392  

Hybrid securities

     1,695,821       997,544       3,161,963  

Capital surplus

     627,496       626,295       285,889  

Other equity

     (2,297,529     (2,249,322     (2,213,970

Retained earnings

     19,116,037       18,524,515       17,124,657  

Non-controlling interests

     3,455,587       3,981,962       213,113  
  

 

 

   

 

 

   

 

 

 

Total equity

     26,208,750       25,492,332       21,953,044  
  

 

 

   

 

 

   

 

 

 

Total liabilities and equity

     380,838,911       361,980,724       340,447,183  
  

 

 

   

 

 

   

 

 

 

Number of Consolidated Subsidiaries (excluding holding company)

     118       102       65  

 

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Summary Consolidated Statement of Comprehensive Income

 

(The Company and its Consolidated Subsidiaries, for the periods indicated)    (unit: millions of Won, except per share amounts)  

Classification

   2020 3Q     2019 3Q     2019     2018  

Operating income

     1,847,758       2,369,703       2,799,976       2,759,301  

Net interest income

     4,428,288       4,416,850       5,893,706       5,650,951  

Net fees and commissions income

     731,049       840,744       1,102,628       1,069,974  

Dividend income

     99,140       84,556       107,959       90,552  

Net gain or loss on financial instruments at FVTPL (fair value through profit or loss)

     531,931       101,608       25,455       214,443  

Net gain or loss on financial assets at FVTOCI

     18,677       8,036       11,015       2,047  

Net gain arising on financial assets at amortized cost

     40,319       99,107       102,115       79,532  

Impairment losses due to credit loss

     (586,720     (323,755     (374,244     (329,574

General and administrative expenses

     (2,688,620     (2,576,277     (3,766,077     (3,624,033

Other net operating income (expenses)

     (726,306     (281,166     (302,581     (394,591
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-operating income(expense)

     (137,929     28,649       (76,927     45,571  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income before income tax expense

     1,709,829       2,398,352       2,723,049       2,804,872  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income tax expense

     (414,081     (592,281     (685,453     (753,223
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     1,295,748       1,806,071       2,037,596       2,051,649  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to owners

     1,140,764       1,665,697       1,872,207       2,033,182  

Net income attributable to the non-controlling interests

     154,984       140,374       165,389       18,467  

Other comprehensive income (loss), net of tax

     (29,330     142,498       51,782       (92,236

Items that will not be reclassified to profit or loss

     (49,753     (90,468     (92,777     (115,384

Items that may be reclassified to profit or loss

     20,423       232,966       144,559       23,148  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

     1,266,418       1,948,569       2,089,378       1,959,413  
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to the owners

     1,116,291       1,795,631       1,914,393       1,943,885  

Comprehensive income attributable to non-controlling interests

     150,127       152,938       174,985       15,528  

Net income per share:

        

Basic and diluted loss per share (in Korean Won)

     1,532       2,459       2,727       2,796  

 

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Table of Contents
2.

Condensed Financial Statements (Separate)

Summary Statement of Financial Position

 

(The Company, as of the end of the period indicated)    (unit: millions of Won)  

Classification

   2020 3Q     2019  

ASSETS

    

Cash and cash equivalents

     97,695       43,670  

Financial assets at fair value through profit or loss

     9,434       9,434  

Financial assets at fair value through other comprehensive income

     150,528       —    

Loans and other financial assets at amortized cost

     993,777       1,269,203  

Investments in subsidiaries

     20,873,593       19,873,593  

Premises and equipment

     8,301       7,383  

Intangible assets

     5,428       3,310  

Deferred tax assets

     692       —    

Other assets

     264       —    
  

 

 

   

 

 

 

Total assets

     22,139,712       21,206,593  
  

 

 

   

 

 

 

LIABILITIES

    

Debentures

     1,147,410       947,679  

Provisions

     718       600  

Net defined benefit liability

     9,146       3,482  

Current tax liabilities

     89,437       133,526  

Deferred tax liabilities

     —         154  

Other financial liabilities

     9,807       10,745  

Other liabilities

     1,170       4,142  
  

 

 

   

 

 

 

Total liabilities

     1,257,688       1,100,328  
  

 

 

   

 

 

 

EQUITY

    

Capital stock

     3,611,338       3,611,338  

Hybrid securities

     1,695,821       997,544  

Capital surplus

     14,874,084       14,874,084  

Other equity

     (1,868     (631

Retained Earnings

     702,649       623,930  
  

 

 

   

 

 

 

Total equity

     20,882,024       20,106,265  
  

 

 

   

 

 

 

Total liabilities and equity

     22,139,712       21,206,593  
  

 

 

   

 

 

 

 

17


Table of Contents

Summary Statement of Comprehensive Income

 

(The Company, for the period indicated)    (unit: millions of Won, except per share amounts)  

Classification

   2020 3Q     2019 3Q     2019  

Operating Income:

     618,788       636,606       629,437  

Net interest income

     (7,751     765       40  

Interest income

     8,998       3,981       7,741  

Interest expense

     (16,749     (3,216     (7,701

Net fees and commissions loss

     (10,730     (9,925     (15,833

Fees and commissions income

     —         —         —    

Fees and commissions expense

     (10,730     (9,925     (15,833

Dividend income

     679,085       676,000       676,000  

Net gain on financial instruments at FVTPL

     —         —         9,434  

Impairment losses due to credit loss

     (174     —         (263

General and administrative expenses

     (41,642     (30,234     (39,941

Non-operating loss

     (220     (755     (750

Net Income before income tax expense

     618,568       635,851       628,687  

Income tax expense

     378       639       (394
  

 

 

   

 

 

   

 

 

 

Net Income

     618,946       636,490       628,293  
  

 

 

   

 

 

   

 

 

 

Other comprehensive loss, net of tax

     (1,237     (761     (631

Items that will not be reclassified to profit or loss

     (1,237     (761     (631

Net gain on valuation of equity securities at FVTOCI

     383       —         —    

Remeasurement loss related to defined benefit plan

     (1,620     (761     (631
  

 

 

   

 

 

   

 

 

 

Total comprehensive Income

     617,709       635,729       627,662  
  

 

 

   

 

 

   

 

 

 

Net Income per share:

      

Basic and diluted Income per share (In Korean Won)

     809       926       900  

 

18


Table of Contents
IV.

Independent Auditor’s Opinion

 

1.

Independent Auditor’s Opinion

 

     2020 3Q    2019    2018  

Auditor

   Samil PricewaterhouseCoopers    Deloitte Anjin LLC      —    

Auditor’s Opinion

   Note 1)    Note 2)      —    

Note 1) In its review report attached to this report, Samil PricewaterhouseCoopers has stated that nothing had come to their attention that caused them to believe that the accompanying consolidated and separate interim financial statements of Woori Financial Group are not presented fairly in all material respects, in accordance with Korean IFRS.

Note 2) In its audit report, Deloitte Anjin LLC has stated that the financial statements are presented fairly, in all material respects, in accordance with Korean IFRS.

 

2.

Compensation to the Independent Auditor

 

a.

Audit Services

 

Term

   Auditor     

Description

   Fee      Total Time  

2020 3Q

     Samil PricewaterhouseCoopers      3Q review      KRW 1,135 million        3,865 hours  
      1H review         2,505 hours  
      1Q review         1,350 hours  

2019

     Deloitte Anjin LLC      Closing audit
(including internal accounting management system)
     KRW 752 million        10,849 hours  
      Interim audit         7,074 hours  
      3Q review         6,095 hours  
      1H review         2,591 hours  
      1Q review         856 hours  

Note 1) Total time includes planning time up until the commencement of the applicable services

 

b.

Other Audit Services

 

Term

   Auditor     

Description

   Fee  

2019

     Deloitte Anjin LLC      Auditing services provided in connection with the submission of a holding company establishment report to the Fair Trade Commission      KRW 67 million  

 

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Table of Contents
c.

Current Status of Audit Service Agreements with the Independent Auditor Relating to U.S. Listing

 

Term

   Auditor   

Description

   Fee

2020

   Samil
PricewaterhouseCoopers
  

U.S. PCAOB standard audit of consolidated financial statements and internal control over financial reporting

   KRW 2,280 million

2019

   Deloitte Anjin LLC   

U.S. PCAOB standard audit of consolidated financial statements and internal control over financial reporting

   KRW 1,873 million

 

d.

Non-Audit Services

 

Term

   Date of Execution
of Agreement
    

Description of Service

   Service Term      Fees  

2020

     July 9, 2020      Tax adjustment (including review relating to application of consolidated tax)      July 9, 2020 ~ May 31, 2021        KRW 61million  

2019

     April 18, 2019      Tax adjustment (including review relating to application of consolidated tax)      April 18, 2019 ~ May 31, 2020        KRW 88 million  
     May 14, 2019      Issuance of agreed-upon procedure report relating to asset management company establishment registration submitted to the Financial Supervisory Service      May 14, 2019 ~ May 31, 2020        KRW 18 million  

 

20


Table of Contents
V.

Corporate Governance and Affiliated Companies

 

1.

About the Board of Directors

 

  a.

Composition of the Board of Directors

The board of directors consists of standing directors, outside directors and non-standing directors.

 

  b.

Committees under the Board of Directors

We currently have the following committees serving under the board of directors:

 

  (a)

Audit Committee

 

  (b)

Board Risk Management Committee

 

  (c)

Compensation Committee

 

  (d)

Committee for Recommending Executive Officer Candidates

 

  (e)

Committee for Recommending Group Executive Officer Candidates

 

  (f)

Committee for Internal Control Management

 

(As of September 30, 2020)

Name of Committee

  

Composition

  

Names of Members

Audit Committee    Three outside directors   

(Chairman) Chan-Hyoung Chung (outside director)

Sung-Tae Ro (outside director)

Dong-Woo Chang (outside director)

Board Risk Management Committee   

Three outside directors

One non-standing director

One standing director

  

(Chairman) Sang-Yong Park (outside director)

Dennis Chan (outside director)

Zhiping Tian (outside director)

Hong-Tae Kim (non-standing director)

Won-Duk Lee (standing director)

Compensation Committee   

Six outside directors

One non-standing director

  

(Chairman) Chan-Hyoung Chung (outside director)

Sung-Tae Ro (outside director)

Sang-Yong Park (outside director)

Dennis Chan (outside director)

Zhiping Tian (outside director)

Dong-Woo Chang (outside director)

Hong-Tae Kim (non-standing director)

Committee for Recommending Executive Officer Candidates

   Six outside directors   

(Chairman) Dong-Woo Chang (outside director)

Sung-Tae Ro (outside director)

Sang-Yong Park (outside director)

Chan-Hyoung Chung (outside director)

Dennis Chan (outside director)

Zhiping Tian (outside director)

Committee for Recommending Group Executive Officer Candidates

  

Six outside directors

One standing director

  

(Chairman) Tae-Seung Son (standing director)

Sung-Tae Ro (outside director)

Sang-Yong Park (outside director)

Chan-Hyoung Chung (outside director)

Dennis Chan (outside director)

Zhiping Tian (outside director)

Dong-Woo Chang (outside director)

Committee for Internal Control Management   

One outside director

One non-standing director

One standing director

  

(Chairman) Sang-Yong Park (outside director)

Hong-Tae Kim (non-standing director)

Tae-Seung Son (standing director)

 

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Table of Contents
2.

Affiliated Companies (As of September 30, 2020)

 

LOGO

 

22


Table of Contents
VI.

Shareholder Information

 

1.

Share Distribution

 

a.

Share Information of the Largest Shareholder and Specially Related Parties

 

As of September 30, 2020    (units: shares, %)  

Name

   Relation      Type    Shares Held      Notes  
   Beginning balance      Ending balance  
   Number      Share      Number      Share  

Korea Deposit

Insurance Corporation (KDIC)

    

Largest

Shareholder

 

 

   Common      124,604,797        17.25        124,604,797        17.25        Note 1

Total

      Common      124,604,797        17.25        124,604,797        17.25     
      Others      —          —          —          —       

Note 1) Refer to ‘b. Changes in the largest shareholder’ for changes in the number and percentage of shares held by the KDIC

 

b.

Changes in the largest shareholder

 

As of September 30, 2020    (units: shares, %)

Change of Date

   Largest Shareholder    Number Held      Share      Notes

January 11, 2019

   Korea Deposit Insurance Corporation      124,604,797        18.32      Comprehensive Stock Transfer

(Woori Financial Group) Note 1)

September 10, 2019

   Korea Deposit Insurance Corporation      124,604,797        17.25      Issuance of new common shares
(42,103,377 shares) Note 2)

Note 1) Woori Financial Group was established pursuant to a comprehensive stock transfer of Woori Bank and five other companies, and the KDIC received new shares of Woori Financial Group in accordance with the stock transfer ratio.

 

LOGO    transfer ratio Woori Bank : Woori Financial Group = 1: 1.0000000

Note 2) Small scale stock exchange between Woori Financial Group and Woori Card.

 

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Table of Contents
c.

Share Ownership of More Than 5%

 

As of September 30, 2020    (units: shares, %)  
     Name   Shares      Notes  
  No. of shares      Percentage of shareholding  

Share ownership of more than 5%

   Korea Deposit Insurance Corporation     124,604,797        17.25        —    
   National Pension Service     71,378,664        9.88        1
   Nobis1, Inc. (IMM PE)     40,560,000        5.62        —    

Employee Stock Ownership Association

    55,046,834        7.62        2

Note 1) Shares based on publicly disclosed information on July 3, 2020

Note 2) Total shares of the employee stock ownership association of Woori Financial Group and Woori Bank

 

2.

Stock Price and Stock Market Performance

 

a.

Domestic Stock Market

 

                                        (units: Won, shares)  

Period

   April
2020
     May
2020
     June
2020
     July
2020
     August
2020
     September
2020
 

Common Shares

   High      8,440        9,130        10,350        9,060        9,240        8,620  
   Low      7,270        7,810        8,690        8,410        8,390        8,080  
   Average      7,893        8,114        9,405        8,783        8,744        8,432  

Monthly

Trade Volume

   High      4,688,039        7,434,397        4,612,618        2,645,106        3,535,877        1,978,885  
   Low      1,974,492        1,395,328        1,258,950        682,717        1,033,160        813,220  
   Monthly Total      57,640,374        53,303,073        54,242,951        36,616,493        37,441,383        27,777,816  

Note 1) Source: KRX KOSPI Market

Note 2) Share prices are based on closing prices.

 

24


Table of Contents
b.

Foreign Stock Market (NYSE)

 

                                 (units: US Dollars, Won, ADSs)  

Period

   April
2020
     May
2020
     June
2020
     July
2020
     August
2020
     September
2020
 

ADS

   High      21.47        22.08        26.07        23.19        23.50        22.08  
   Low      17.31        18.98        21.74        21.32        20.93        20.71  
   Average      19.50        19.99        23.30        21.99        22.17        21.57  

Won

Conversion

   High      26,305        27,365        31,737        27,837        27,845        25,910  
   Low      21,118        23,305        26,057        25,466        24,887        24,114  
   Average      23,895        24,564        28,192        26,360        26,318        25,431  

Monthly

Trade Volume

   High      214,700        164,700        106,900        169,200        58,700        53,800  
   Low      34,600        34,600        18,500        19,900        10,900        19,600  
   Monthly Total      2,009,400        1,413,000        1,254,900        1,028,500        752,900        619,600  

Note 1) Source: standard trading rate (daily and monthly average) (Seoul Money Brokerage, www.smbs.biz)

Note 2) One ADS represents three common shares.

Note 3) Share prices are based on closing prices.

 

25


Table of Contents
VII.

Directors and Employee Information

 

1.

Directors and Executives

 

As of September 30, 2020                           

Position

   Name    Common
Shares
Owned
     Term
Commencement Date
   Expiration of Term

Chief Executive Officer

   Registered    Tae-Seung Son      83,127      January 11, 2019 ~    Note 1)

Deputy President

   Registered    Won-Duk Lee      19,500      March 25, 2020 ~    Note 2)

Outside Director

   Registered    Sung-Tae Ro      5,000      January 11, 2019 ~    Note 2)

Outside Director

   Registered    Sang-Yong Park      1,000      January 11, 2019 ~    Note 2)

Outside Director

   Registered    Chan-Hyoung Chung      10,532      January 11, 2019 ~    Note 2)

Outside Director

   Registered    Dennis Chan      —        March 25, 2020 ~    Note 3)

Outside Director

   Registered    Zhiping Tian      —        January 11, 2019 ~    Note 2)

Outside Director

   Registered    Dong-Woo Chang      —        January 11, 2019 ~    Note 2)

Non-standing Director

   Registered    Hong-Tae Kim      —        March 25, 2020 ~    Note 3)

Deputy President

   Non-Registered    Jeong-Ki Kim      31,385      February 11, 2020 ~    December 31, 2020

Deputy President

   Non-Registered    Dong-Su Choi      17,738      January 11, 2019 ~    December 31, 2020

Deputy President

   Non-Registered    Kyong-Hoon Park      17,000      January 11, 2019 ~    December 31, 2020

Deputy President

   Non-Registered    Myung-Hyuk Shin      5,000      February 11, 2020 ~    December 31, 2020

Deputy President

   Non-Registered    Jin-Ho Noh      4,000      February 11, 2020 ~    December 31, 2020

Senior Managing Director

   Non-Registered    Kyu-Mok Hwang      14,239      February 11, 2020 ~    December 31, 2020

Senior Managing Director

   Non-Registered    Seok-Tae Lee      16,857      February 11, 2020 ~    December 31, 2020

Senior Managing Director

   Non-Registered    Seok-Young Chung      20,951      February 11, 2020 ~    January 10, 2021

Managing Director

   Non-Registered    Weong-Cheol Hwang      2,000      July 3, 2020 ~    December 31, 2020

Managing Director

   Non-Registered    Shin-Kook Kang      3,000      February 11, 2020 ~    December 31, 2021

Managing Director

   Non-Registered    Gyu-Soon Hwang      4,000      February 11, 2020 ~    December 31, 2021

Managing Director

   Non-Registered    Jong-Il Park      12,619      February 11, 2020 ~    December 31, 2021

Managing Director

   Non-Registered    Byoung-Kwon Woo      3,500      February 11, 2020 ~    February 10, 2022

Managing Director

   Non-Registered    Sung-Wook Lee      8,000      February 11, 2020 ~    December 31, 2021

Note 1) Date of the 2023 annual general meeting of shareholders

Note 2) Date of the 2021 annual general meeting of shareholders

Note 3) Date of the 2022 annual general meeting of shareholders

Note 4) Term commencement date: date of inauguration for registered officers or directors / date of appointment for non-registered officers or directors

Note 5) Common shares owned are as of the date of submission of this report, and those owned by executives exclude shares owned through the Employee Stock Ownership Association.

 

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Table of Contents
2.

Employee Status

 

As of September 30, 2020

                         (units: persons, millions of Won)  
     Number of Employees      Average
Tenure
  Total
Compensation
     Average
Compensation

Per Person
     Note  
   Regular      Contract      Total  
   Total      (Short time
worker)
     Total      (Short time
worker)
 

Total

     144        —          32        —          176      16 months

(15 years

4 months)

    20,509        117        —    

Note 1) 51 employees concurrently employed by affiliated companies are excluded

Note 2) Average tenure: term in ( ) includes tenure at affiliated companies

Note 3) Contract employees include non-registered executives

 

3.

Directors’ Compensation

 

As of September 30, 2020           (units: persons, millions of Won)  

Items

   Number
of
Persons
     Total
Compensation
     Average
Compensation

Per Director
     Note  

Registered Directors

(excludes outside directors and audit committee members)

     3        1,095        365        —    

Outside Directors

(excludes audit committee members)

     3        135        45        —    

Audit Committee Members

     3        120        40        —    

Auditor

     —          —          —          —    

Note 1) Registered directors and audit committee members include uncompensated directors

Note 2) Only the compensation amount paid by Woori Financial Group is included for the three executives concurrently employed by Woori Bank

 

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Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

   

Woori Financial Group Inc.

(Registrant)

Date: November 16, 2020     By:  

/s/ Kyong-Hoon Park

    (Signature)
    Name: Kyong-Hoon Park
    Title: Deputy President

 

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