Summary: Woori Bank

Strong market position in Korea. High likelihood of government support. Strong corporate banking business. Weaker track record of managing credit risk than major commercial banks. Potential pressure on asset quality from high household leverage in Korea. Weak core earnings, despite some improvement in recent years. The stable outlook on Woori Bank reflects S&P Global Ratings' view that the Korea-based bank will likely manage a potential rise in credit costs in the coming 18-24 months with its current pre-provisioning profit levels. This is despite difficult operating conditions, with ongoing pressure on weak corporate sectors such as shipbuilding, shipping, and construction, and high household indebtedness. The Korean government's privatization plan for Woori has been progressing well, with a partial stake sell-off in

...Outlook: Stable The stable outlook on Woori Bank reflects S&P Global Ratings' view that the Korea-based bank will likely manage a potential rise in credit costs in the coming 18-24 months with its current pre-provisioning profit levels. This is despite difficult operating conditions, with ongoing pressure on weak corporate sectors such as shipbuilding, shipping, and construction, and high household indebtedness. The Korean government's privatization plan for Woori has been progressing well, with a partial stake sell-off in 2016. However, government ownership is not a major rating factor for Woori, and we expect the bank to continue to have high systemic importance. That's because Woori holds about 10% market share in both the loan and deposit markets in Korea....

Summary