3 hours Ago By [email protected](KoreaTimes)
Woori Financial Group Chairman Yim Jong-yong / Yonhap Woori Financial shares draw net foreign inflow in December despite marital law fiasco By Lee Kyung-min Woori Financial Group is fortifying efforts to contain the fallout of the short-lived martial law order here , reassuring offshore investors of the group’s soundness in liquidity, assets and key financial indicators, it said Tuesday. Included were the Government of Singapore Investment Corp. and Abu Dhabi Investment Authority, sovereign wealth funds of Singapore and the United Arab Emirates.
Recent heightened political uncertainties notwithstanding , Woori’s macroeconomic indicators remain healthy, as evidenced by a stable liquidity coverage ratio (LCR) and limited foreign currency-denominated withdrawals. Unlike its peers, shares of Woori Financial Group locked in a foreign net inflow of 33 billion won ($25 million) from Dec. 1 to 11, illustrative of strong global investor confidence in Woori’s strengthened shareholder return policies despite the martial law developments.
Read More Korean financial market endures fallout from short-lived martial law fiasco Diffusing panic key to containing martial law debacle fallout: BOK head Hana, Woori rush to contain martial law fallout Banks turn to proven sales veterans amid challenging outlook “Our liquidity profile and financial soundness remains robust,” a Woori Financial official said. “We are fully prepared to counter any potential risks.” Underpinning the confidence is foreign currency liquidity of Woori Bank doubling the regulatory requirement, a buffer against external shocks from wild currency fluctuation and resulting dollar demands depreciating the Korean won.
Greater focus will be placed on return on the stable management of risk-weighted assets, as confirmed by the board. Woori’s common equity tier 1 ratio target of 12.5 percent will be achieved by 2025, in line with the disclosure of the Corporate Value-up program outlined in July.
The ratio, a measure of financial soundness, is tied closely to shareholder returns, including stock buybacks for cancellation and dividend payouts. Also favorable are muted stress events and stable market conditions, aided in large part by the financial authorities’ liquidity measures. Included are the Bank of Korea’s pledge of unlimited, ad-hoc repurchase agreements (repos) expansion as well as the Financial Services Commission's (FSC) injection of a combined 50 trillion won in stock stabilization funds and Korea Treasury Bonds stabilization funds.
The Bank of Korea (BOK) measure expands the repos both in frequency and in the scope of eligible market participants. The FSC stabilization funds can mitigate a potential surge of plunging won-triggered margin calls. Read More Conservative justice to lead Yoon's impeachment trial Constitutional Court to begin Yoon's impeachment trial Dec.
27 Ruling party leader Han Dong-hoon steps down following Yoon's impeachment How scandals surrounding first lady contributed to Yoon's downfall "The fundamentals of the Korean economy remain robust,” the official said. “Political developments will stabilize, and so will the key economic indicators, including currency values and stock indices. We will do our utmost to bolster the strength and resilience of Woori Financial in this time of extreme confusion.
Our value-up drive will continue without any setbacks.” Woori sent a letter to 160 offshore investors to reassure them of continued corporate growth drives, regardless — and despite — the political turmoil. “We have held conference calls, in-person meetings over the past two weeks, reiterating our continued efforts to monitor LCRs, financial soundness and volatilities in currency value.
The current crisis will be navigated with the utmost sense of urgency,” he said..
