The ratings on Woori Bank (Woori; A-/Negative/A-2) reflect its strong market position as Korea's second-largest bank and as a core operating subsidiary of Woori Finance Holdings Co. Ltd. (BBB+/Negative/A-2). The ratings are also supported by the bank's strong corporate banking business and good revenue contributions from nonbanking businesses at the group level. These strengths are offset by rising credit risks posed by the economic slowdown, exposure to small and midsize enterprises (SMEs), construction, and real estate/lease businesses, including residential property development, and mid- to long-term downward pressure on interest margins. Woori Bank has a strong market position as the second-largest bank in Korea, supported by Woori Financial Group's (WFG) extensive branch network. Woori's domestic market share of loans and deposits
