The rating on Woori Bank reflects recent improvement in the financial profile of the Korean corporate sector, which, along with the adoption of more disciplined credit practices by the bank, should help it to profit from its huge customer base. The ratings on Woori Bank are constrained by its concentrated exposure to large corporations in Korea ('chaebol'). Woori Bank's asset quality has improved over the past two years, with problem loans (loans classified as precautionary or below) declining to 7.53% at September 2002 from 9.54% at the end of 2001. Following the hiring of senior management from U.S. banks, the bank has adopted more disciplined credit practices. Nevertheless, the bank's loan portfolio remains vulnerable due to concentrated exposure to a
