Woori Bank

Strong market position High likelihood of receiving government support Strong corporate banking business Relatively weak track record in managing credit risks compared to its major commercial bank peers Relatively weak core earnings Potential pressure on asset quality from Korea's high household debt The stable outlook on Woori Bank reflects S&P Global Ratings' view that potential credit risks remain manageable and the bank is likely to maintain its current level of capitalization over the next 18-24 months. We expect Woori to manage a potential rise in credit costs with current preprovisioning profit levels amid challenging operating conditions, characterized by ongoing pressure on the credit quality from weak corporate sectors such as shipping and shipbuilding. We also believe that the Korean government's

...Outlook: Stable The stable outlook on Woori Bank reflects S&P Global Ratings' view that potential credit risks remain manageable and the bank is likely to maintain its current level of capitalization over the next 18-24 months. We expect Woori to manage a potential rise in credit costs with current preprovisioning profit levels amid challenging operating conditions, characterized by ongoing pressure on the credit quality from weak corporate sectors such as shipping and shipbuilding. We also believe that the Korean government's privatization plan for Woori is unlikely to have any significant rating implications for the bank. Government ownership has not been a rating factor for Woori, and we expect Woori to continue to have high systemic importance, as it holds about 10% market shares in both the loan and deposit markets in the Korean banking system....

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