Woori Bank is, reportedly, planning to expand its retail banking business in Indonesia after receiving approval from Indonesia’s central bank for the acquisition of Saudara Bank in the country.
In June 2013, Woori Bank signed an agreement to acquire 33% stake in Saudara from the Bank of Indonesia for an undisclosed amount.
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The move by the bank to acquire Saudara was intended to foray into Indonesia’s retail banking market, where the purchasing power is growing constantly.
The acquisition will also allow Woori to penetrate into retail banking market of other Asian countries.
According to the company, Woori Bank CEO Lee Soon-Woo had earlier approached the central bank to showcase his eligibility as CEO for the new entity.
Lee was quoted by The Korea Times as saying that if approved, Saudara will be merged with Bank Woori Indonesia, Woori’s 95%-owned unit in Indonesia, in early 2014.
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By GlobalDataWoori Bank international banking division general manager Kim Eung-chul said an addition of Saudara’s 109 retail banking-focused networks would bring their total overseas networks to 173.
"It will help Woori boost profits in overseas markets," Eung-chul added.
