We expect the group to continue to focus on maintaining sufficient regulatory capital buffers under Basel III capital requirements. Based on the group's record, it could supplement its capital buffer by issuing additional Tier-1 hybrid capital securities, if needed. The bank's moderate growth will underpin its adequate capitalization despite a modest decline in profitability mainly due to the contraction of net interest margins amid a gradual lowering in domestic policy rates. We project Woori Bank's risk-adjusted capital (RAC) ratio will stay at 7.5%-8.0% over the next two years, compared with about 7.7% at end-2023. Woori Bank has high systemic importance in Korea, which warrants a high likelihood of extraordinary government support in times of need. As of end-June 2024, we
