SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2022

Commission File Number: 001-31811

 

 

Woori Financial Group Inc.

(Translation of registrant’s name into English)

 

 

51, Sogong-ro, Jung-gu, Seoul, 04632, Korea

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 

Index

 

1.		Summary of 2022 Third Quarter Business Report
2.		Exhibit 99.1 Woori Financial Group Review Report for 2022 3Q (Consolidated)
3.		Exhibit 99.2 Woori Financial Group Review Report for 2022 3Q (Separate)

 

2

Summary of 2022 Third Quarter Business Report

Table of Contents

 

I.		INTRODUCTION OF THE COMPANY					5
II.		BUSINESS OVERVIEW					5
		1.		Results of Operations			5
		2.		Funding Sources and Uses of Funds			5
		3.		Other Information Necessary for Making Investment Decisions			6
III.		FINANCIAL INFORMATION					11
		1.		Condensed Financial Statements (Consolidated)			11
		2.		Condensed Financial Statements (Separate)			13
		3.		Dividend Information			15
IV.		INDEPENDENT AUDITOR’S OPINION					16
		1.		Independent Auditor’s Opinion			16
		2.		Compensation to the Independent Auditor			16
V.		CORPORATE GOVERNANCE					18
VI.		SHAREHOLDER INFORMATION					18
		1.		Share Distribution			18
		2.		Stock Price and Stock Market Performance			19
VII.		DIRECTORS AND EMPLOYEE INFORMATION					21
		1.		Directors and Executives			21
		2.		Employee Status			22
		3.		Directors’ Compensation			22

 

3

Except where indicated otherwise, financial information contained in this document (including the attached financial statements) has been prepared in accordance with the Korean equivalent of International Financial Reporting Standards (“Korean IFRS”), which differ in certain important respects from generally accepted accounting principles in the United States.

All references to “Woori Financial Group,” “we,” “us” or the “Company” are to Woori Financial Group Inc. and, unless the context requires otherwise, its subsidiaries. In addition, all references to “Won” or “KRW” in this document are to the currency of the Republic of Korea.

 

4

I.	Introduction of the Company

This section has been omitted for quarterly business reports, pursuant to revised Korean regulations. For information on this section, please refer to the Form 6-K furnished to the Securities and Exchange Commission on August 17, 2022 under the title “Summary of 2022 First Half Business Report.”

 

II.	Business Overview

 

1.	Results of Operations

 

		(unit: billions of Won)
Type		2022 3Q				2021				2020
Operating income			3,703				3,660				2,080
Non-operating income (expense)			53				89				(79	)
Income from continuing operations before income tax			3,756				3,749				2,001
Income tax expense from continuing operations (-)			963				942				486
Income from discontinued operations			—				—				—
Net income			2,793				2,807				1,515
Controlling Interest			2,662				2,588				1,307
Non-controlling Interest			131				219				208

Note 1) Based on K-IFRS consolidated financial statements

 

2.	Funding Sources and Uses of Funds

 

a.	Sources of Funds

 

For the periods indicated other than as noted below																												(units: millions of Won, %)
Classification		Funding Source		2022 3Q												2021												2020
				Average Balance				Interest Rate				Proportion				Average Balance				Interest Rate				Proportion				Average Balance				Interest Rate				Proportion
Source		Deposits			310,079,041				1.22				67.73				291,653,291				0.79				70.88				265,636,358				1.08				71.78
		Borrowings			27,690,604				1.57				6.05				21,628,379				0.98				5.26				19,606,056				1.31				5.30
		Debentures			46,382,119				2.02				10.13				40,901,547				1.78				9.94				32,287,676				2.24				8.73
		Others			43,965,924				—				9.60				29,470,312				—				7.16				26,523,338				—				7.17
		Total Liabilities			428,117,687				—				93.51				383,653,529				—				93.23				344,053,429				—				92.97
Total Equity					29,696,492				—				6.49				27,845,863				—				6.77				25,996,721				—				7.03
Total Liabilities & Equity					457,814,179				—				100.00				411,499,392				—				100.00				370,050,150				—				100.00

Note 1) Average Balance : the simple average of the balances at the start of the fiscal year and at the end of each quarter

Note 2) Based on K-IFRS consolidated financial statements

 

5

b.	Use of Funds

 

For the periods indicated other than as noted below																												(units: millions of Won, %)
Type		Managed Item		2022 3Q												2021												2020
				Average Balance				Interest Rate				Proportion				Average Balance				Interest Rate				Proportion				Average Balance				Interest Rate				Proportion
Use		Cash & Due from Banks			15,306,241				0.99				3.34				13,809,362				0.34				3.36				11,925,297				0.45				3.22
		Marketable securities			67,493,298				1.12				14.74				58,416,310				1.67				14.20				54,474,169				1.87				14.72
		Loans			326,531,064				3.44				71.32				301,849,585				2.79				73.35				269,533,892				2.98				72.84
		Loans in local currency			279,634,753				3.27				61.08				262,010,967				2.59				63.67				233,117,610				2.75				63.00
		Loans in foreign Currency			31,178,774				4.04				6.81				25,104,084				3.58				6.10				22,614,578				3.99				6.11
		Guarantee payments			21,236				2.98				0.00				28,000				2.46				0.01				15,845				4.04				0.00
		Credit card receivables			9,942,441				7.26				2.17				9,196,190				7.42				2.23				8,207,859				7.87				2.22
		Foreign bills bought			5,753,860				1.85				1.26				5,510,344				0.85				1.34				5,578,001				1.53				1.51
		Bad debt expense in local currency (-)			2,074,986				—				0.45				1,878,781				—				0.46				1,708,074				—				0.46
		Others			50,558,561				—				11.04				39,302,917				—				9.55				35,824,866				—				9.68
Total Assets					457,814,179				—				100.00				411,499,392								100.00				370,050,150				—				100.00

Note 1) Average Balance : the simple average of the balances at the start of the fiscal year and at the end of each quarter

Note 2) Based on K-IFRS consolidated financial statements

 

3.	Other Information Necessary for Making Investment Decisions

 

a.	Capital Adequacy Ratios

Group BIS Capital Adequacy Ratios

 

As of the end of the period indicated		(units: billions of Won, % )
Type		2022 3Q				2021				2020
Equity capital (A)			31,781				28,980				27,448
Risk weighted assets (B)			222,210				192,503				198,269
BIS(Capital adequacy) ratio (A/B)			14.30				15.05				13.84

Note 1) BIS (Bank for International Settlements) Capital Adequacy Ratios = Equity capital / Risk weighted assets * 100

Note 2) Based on K-IFRS consolidated financial statements and Basel III standards

Note 3) 2022 3Q figures are estimates only and are subject to change

 

6

Capital Adequacy Ratios for Significant Subsidiaries and Consolidated Companies

 

As of the end of the periods indicated										(units: millions of Won, %)
Name of Company		Type				2022 3Q				2021				2020
Woori Bank Note 2)		BIS ratio Note 1)		Equity capital (A)			27,342,116				25,473,034				25,269,072
				Risk weighted assets (B)			180,069,905				157,275,764				145,755,395
				Capital adequacy ratio (A/B)			15.18				16.20				17.34
Woori Card Note 3)		Adjusted capital ratio					16.44				17.73				19.93
		Tangible common equity ratio					11.47				11.84				13.48
Woori Financial Capital Note 3)		Adjusted capital ratio					12.91				13.38				12.17
		Tangible common equity ratio					11.93				11.70				10.77
Woori Investment Bank Note 4)		BIS ratio Note 1)		Equity capital (A)			642,317				576,693				491,799
				Risk weighted assets (B)			4,383,065				4,037,822				3,192,245
				Capital adequacy ratio (A/B)			14.65				14.28				15.41
Woori Asset Trust Note 5)		Operating capital ratio					1,284.80				1,078.93				1,286.43
Woori Asset Management Note 3)		Minimum operating capital ratio					716.93				721.87				754.11
Woori Savings Bank Note 6)		BIS Capital adequacy ratio Note 1)					17.97				21.47				13.40

Note 1) BIS (Bank for International Settlements) Capital Adequacy Ratio : Equity capital / Risk weighted assets * 100

Note 2) Figures for Woori Bank are based on the K-IFRS consolidated financial statements and Basel III standards. 2022 3Q figures are estimates only and are subject to change

Note 3) Figures for Woori Card, Woori Financial Capital and Woori Asset Management are based on the applicable standards for business reports submitted to the Financial Supervisory Service and K-IFRS separate financial statements

Note 4) Figures for Woori Investment Bank are based on the applicable standards for business reports submitted to the Financial Supervisory Service and K-IFRS consolidated financial statements

Note 5) Figures for Woori Asset Trust are based on K-IFRS separate financial statements

Note 6) Figures for Woori Savings Bank are based on K-GAAP

 

7

b.	Liquidity Ratios

Won Liquidity Ratios

 

As of the end of the periods indicated																(units: millions of Won, %)
Type		2022 3Q						2021						2020
		Won Liquidity Assets		Won Liquidity Liabilities		Won Liquidity Ratio		Won Liquidity Assets		Won Liquidity Liabilities		Won Liquidity Ratio		Won Liquidity Assets		Won Liquidity Liabilities		Won Liquidity Ratio
Woori Financial Group Note 1)		355,881		3,849		9,246.1		560,744		5,734		9,779.3		40,308		7,911		509.5
Woori Card Note 2)		8,139,503		1,926,873		422.4		7,455,390		1,419,809		525.1		6,255,965		1,406,387		444.8
Woori Financial Capital Note 2)		2,123,413		1,025,127		207.1		1,531,101		856,736		178.7		1,357,876		616,632		220.2
Woori Investment Bank Note 2)		2,591,515		1,611,982		160.8		2,728,159		2,031,260		134.3		2,166,208		1,555,418		139.3
Woori Asset Trust Note 2)		223,612		19,858		1,126.08		176,660		25,558		691.2		148,856		16,157		921.3
Woori Savings Bank Note 2), Note 3)		394,223		243,490		161.9		292,913		228,445		128.2		267,927		209,712		127.8

Note 1) Based on current assets and liabilities within one month of maturity

Note 2) Based on current assets and liabilities within 90 days of maturity

Note 3) Based on K-GAAP

Foreign Currency (FC) Liquidity Ratios

 

As of the end of the periods indicated																(units: millions of Won, %)
Type		2022 3Q						2021						2020
		FC Liquidity Assets		FC Liquidity Liabilities		FC Liquidity Ratio		FC Liquidity Assets		FC Liquidity Liabilities		FC Liquidity Ratio		FC Liquidity Assets		FC Liquidity Liabilities		FC Liquidity Ratio
Woori Investment Bank Note 1)		52,110		50,046		104.1		13,583		—		—		425		—		—

Note 1) Based on current assets and liabilities within three months of maturity

Liquidity Coverage Ratios

 

												(unit: %)
Name of Company		Type		2022 3Q				2021				2020
Woori Bank		Liquidity coverage ratio Note 1)			97.22				89.95				92.07
		Foreign currency liquidity coverage ratio Note 1)			109.97				107.40				106.06
		Ratio of business purpose premises and equipment			10.75				11.46				11.68

Note 1) The methods of calculation are the same as for the applicable standards for business disclosures, and the applicable periods are 2022 3Q, 2021 4Q and 2020 4Q (The liquidity coverage ratio represents the average of the ratios for each business day in each applicable period, whereas the foreign currency liquidity coverage ratio represents the ratio of the average figures in each applicable period)./Under the ‘Status of and Plans for the Easement of Financial Regulations’ announced by the Financial Services Commission, the liquidity coverage ratio and the foreign currency liquidity coverage ratio requirements for banks were 85% and 70% respectively for 2020 4Q and 2021 4Q, and 90% and 80% respectively, for 3Q 2022.

 

8

c.	Profitability Ratio Note 1), Note 2)

 

																						(units: %)
Type		2022 3Q								2021								2020
		ROA				ROE				ROA				ROE				ROA				ROE
Woori Financial Group
Including non-controlling interests			0.78				13.87				0.66				11.48				0.40				6.80
Excluding non-controlling interests			0.75				13.22				0.61				10.58				0.34				5.87
Woori Bank			0.72				12.98				0.60				9.92				0.37				5.95
Woori Card			1.74				11.11				1.10				6.36				0.98				5.29
Woori Financial Capital			1.61				13.59				1.69				15.73				1.53				13.83
Woori Investment Bank			1.57				13.12				1.59				12.89				1.47				13.13
Woori Asset Trust			26.37				37.68				18.64				27.05				22.03				31.51
Woori Asset Management			0.23				0.24				6.82				7.11				5.85				6.12
Woori Savings Bank Note 3)			0.73				5.12				1.06				7.95				0.97				10.10

Note 1) Based on the applicable standards* for business reports submitted to the Financial Supervisory Service. The figures for Woori Financial Group and Woori Bank are on a consolidated basis and the figures for the other subsidiaries are on a non-consolidated basis.

 

*	Woori Card, Woori Financial Capital, Woori Investment Bank, Woori Savings Bank: Net income over the last 12 months / average balance of equity capital over the last 12 months

 

*	Woori Financial Group and other subsidiaries: Based on the applicable standards for business reports submitted to the Financial Supervisory Service, on an annualized basis

Note 2) Total assets and total equity : the simple average of the balances at the start of the fiscal year and at the end of each quarter

Note 3) Figures for Woori Savings Bank are based on K-GAAP

 

d.	Asset Quality

Group Asset Quality

 

		(units: billions of Won, except percentages)
Type		2022 3Q				2021				2020
Total loans			353,161				332,797				299,075
Substandard and below loans			1,014				990				1,256
Substandard and below loans ratio			0.29	%			0.30	%			0.42	%
Non-Performing Loans			942				902				1,149
NPL Ratio			0.27	%			0.27	%			0.38	%
Substandard and below coverage ratio (A/B)			222.7	%			192.2	%			153.8	%
Loan Loss reserve (A)			2,257				1,903				1,932
Substandard and below loans (B)			1,014				990				1,256

Note 1) Based on the applicable standards for financial holding company business reports submitted to the Financial Supervisory Service

 

9

Asset Quality for Significant Subsidiaries and Consolidated Companies Note 1)

 

 

																																		(units: %)
		2022 3Q												2021												2020
Type		Substandard and below ratio				NPL ratio				Substandard and below coverage ratio				Substandard and below ratio				NPL ratio				Substandard and below coverage ratio				Substandard and below ratio				NPL ratio				Substandard and below coverage ratio
Woori Bank			0.17				0.15				270.99				0.20				0.18				205.50				0.32				0.30				153.95
Woori Card			0.64				—				105.78				0.41				—				103.21				0.63				—				102.65
Woori Financial Capital			1.07				—				177.28				1.20				—				196.70				1.77				—				140.15
Woori Investment Bank			0.48				0.48				159.18				0.57				0.55				120.05				0.79				0.20				84.78
Woori Asset Trust			19.96				—				—				56.61				—				—				63.64				—				—
Woori Savings Bank Note 2)			2.68				—				105.70				2.32				—				117.37				3.40				—				90.37

Note 1) Based on the applicable standards for business reports submitted to the Financial Supervisory Service

Note 2) Based on K-GAAP

 

10

III.	Financial Information

 

1.	Condensed Financial Statements (Consolidated)

Summary Consolidated Statement of Financial Position

 

(The Company and its consolidated subsidiaries, as of the end of the periods indicated)		(unit: millions of Won)
Classification		2022 3Q				2021				2020
ASSETS
Cash and cash equivalents			9,276,913				7,565,818				9,990,983
Financial assets at fair value through profit or loss (“FVTPL”)			30,318,445				13,497,234				14,762,941
Financial assets at fair value through other comprehensive income			34,635,989				39,119,789				30,028,929
Securities at amortized cost			25,137,354				17,086,274				17,020,839
Loans and other financial assets at amortized cost			393,304,537				361,932,872				320,106,078
Investments in joint ventures and associates			1,338,107				1,335,167				993,291
Investment properties			391,979				389,495				387,464
Premises and equipment			3,156,318				3,174,720				3,287,198
Intangible assets and goodwill			875,629				785,386				792,077
Assets held for sale			17,781				26,327				60,002
Net defined benefit asset			195,634				21,346				5,658
Current tax assets			40,494				22,598				75,655
Deferred tax assets			176,266				31,131				46,088
Derivative assets (designated for hedging)			131,025				106,764				174,820
Other assets			3,072,463				2,088,950				1,348,994
Total assets			502,068,934				447,183,871				399,081,017
LIABILITIES
Financial liabilities at FVTPL			21,432,954				4,873,458				6,813,822
Deposits due to customers			332,347,105				317,899,871				291,477,279
Borrowings			33,400,405				24,755,459				20,745,466
Debentures			48,848,451				44,653,864				37,479,358
Provisions			534,049				576,134				501,643
Net defined benefit liability			43,425				47,986				52,237
Current tax liabilities			669,111				584,491				370,718
Deferred tax liabilities			22,593				186,946				160,250
Derivative liabilities (designated for hedging)			208,641				27,584				64,769
Other financial liabilities			32,735,783				24,171,030				14,215,817
Other liabilities			698,003				556,853				473,813
Total liabilities			470,940,520				418,333,676				372,355,172
EQUITY
Owners’ equity:			28,252,573				25,842,019				23,053,608
Capital stock			3,640,303				3,640,303				3,611,338
Hybrid securities			2,892,989				2,294,381				1,895,366
Capital surplus			682,385				682,385				626,111
Other equity			(2,261,388	)			(2,167,614	)			(2,347,472	)
Retained earnings			23,298,284				21,392,564				19,268,265
Non-controlling interests			2,875,841				3,008,176				3,672,237
Total equity			31,128,414				28,850,195				26,725,845
Total liabilities and equity			502,068,934				447,183,871				399,081,017
Number of consolidated subsidiaries (excluding holding company)			163				152				131

 

11

Summary Consolidated Statement of Comprehensive Income

 

(The Company and its consolidated subsidiaries, for the periods indicated)		(unit: millions of Won, except per share amounts)
Classification		2022 3Q				2021 3Q				2021				2020
Operating income			3,702,665				3,075,608				3,659,749				2,080,394
Net interest income			6,347,648				5,088,871				6,985,721				5,998,512
Net fees and commissions income			1,270,904				1,105,776				1,470,775				1,014,039
Dividend income			123,235				262,937				309,211				138,543
Net gain or loss on financial instruments at FVTPL			669,978				238,204				325,751				421,709
Net gain or loss on financial assets at FVTOCI			(8,846	)			45,830				32,624				24,138
Net gain or loss arising on financial assets at amortized cost			74,349				97,755				107,317				44,443
Impairment losses due to credit loss			(622,034	)			(311,661	)			(536,838	)			(784,371	)
General and administrative expenses			(2,936,825	)			(2,792,841	)			(4,147,411	)			(3,956,181	)
Other net operating expenses			(1,215,744	)			(659,263	)			(887,401	)			(820,438	)
Non-operating income (expense)			53,454				77,122				89,492				(79,143	)
Net income before income tax expense			3,756,119				3,152,730				3,749,241				2,001,251
Income tax expense			(963,430	)			(791,083	)			(941,870	)			(486,002	)
Net income			2,792,689				2,361,647				2,807,371				1,515,249
Net income attributable to owners			2,661,745				2,197,936				2,587,936				1,307,266
Net income attributable to the non-controlling interests			130,944				163,711				219,435				207,983
Other comprehensive income (loss), net of tax			(52,865	)			217,085				170,181				(82,207	)
Items that will not be reclassified to profit or loss			159,929				134,124				96,529				54,964
Items that may be reclassified to profit or loss			(212,794	)			82,961				73,652				(137,171	)
Total comprehensive income			2,739,824				2,578,732				2,977,552				1,433,042
Comprehensive income attributable to the owners			2,591,033				2,403,294				2,745,764				1,233,097
Comprehensive income attributable to non-controlling interests			148,791				175,438				231,788				199,945
Net income per share:
Basic and diluted loss per share (in Korean Won)			3,570				2,971				3,481				1,742

 

12

2.	Condensed Financial Statements (Separate)

Summary Statement of Financial Position

 

(The Company, as of the end of the periods indicated)		(unit: millions of Won)
Classification		2022 3Q				2021				2020
ASSETS
Cash and cash equivalents			444,386				578,725				69,176
Financial assets at fair value through profit or loss			—				—				7,247
Financial assets at fair value through other comprehensive income			315,093				146,294				149,614
Loans and other financial assets at amortized cost			1,573,168				633,110				619,117
Investments in subsidiaries			22,394,915				22,144,915				21,562,229
Premises and equipment			6,903				7,790				12,538
Intangible assets			5,208				5,171				5,282
Net defined benefit asset			2,292				1,516				3,509
Current tax assets			2,209				856				307
Deferred tax assets			12,486				6,454				964
Other assets			318				151				—
Total assets			24,756,978				23,524,982				22,429,983
LIABILITIES
Financial liabilities at fair value through profit or loss			329				329				—
Debentures			1,447,611				1,367,429				1,147,503
Provisions			485				394				782
Current tax liabilities			563,754				468,305				215,071
Other financial liabilities			22,402				22,988				22,085
Other liabilities			1,378				548				570
Total liabilities			2,035,959				1,859,993				1,386,011
EQUITY
Capital stock			3,640,303				3,640,303				3,611,338
Hybrid securities			2,892,813				2,294,288				1,895,322
Capital surplus			10,909,281				10,909,281				14,874,084
Other equity			(24,276	)			(3,874	)			(1,518	)
Retained Earnings			5,302,898				4,824,991				664,746
Total equity			22,721,019				21,664,989				21,043,972
Total liabilities and equity			24,756,978				23,524,982				22,429,983

 

13

Summary Statement of Comprehensive Income

 

(The Company, for the periods indicated)		(unit: millions of Won, except per share amounts)
Classification		2022 3Q				2021 3Q				2021				2020
Operating income			1,199,821				621,659				590,550				594,752
Net interest expense			(8,966	)			(16,493	)			(22,245	)			(12,953	)
Interest income			13,581				2,686				4,236				10,082
Interest expense			(22,547	)			(19,179	)			(26,481	)			(23,035	)
Net fees and commissions loss			(9,502	)			(9,728	)			(12,585	)			(15,394	)
Fees and commissions income			979				604				1,306				805
Fees and commissions expense			(10,481	)			(10,332	)			(13,891	)			(16,199	)
Dividend income			1,267,756				691,315				692,605				680,375
Net gain (loss) on financial instruments at FVTPL			—				—				(7,576	)			(920	)
Reversal (Provision) of impairment losses due to credit loss			(167	)			88				76				116
General and administrative expenses			(49,300	)			(43,523	)			(59,725	)			(56,472	)
Non-operating income (expense)			(1,355	)			(5	)			(305	)			(215	)
Net income before income tax expense			1,198,466				621,654				590,245				594,537
Income tax income (expense)			(1,706	)			132				4,607				781
Net income			1,196,760				621,786				594,852				595,318
Other comprehensive income (loss), net of tax			(20,402	)			(1,245	)			(2,330	)			(887	)
Items that will not be reclassified to profit or loss			(20,402	)			(1,245	)			(2,330	)			(887	)
Net gain (loss) on valuation of equity securities at FVTOCI			(22,622	)			(1,111	)			(2,408	)			(280	)
Remeasurement of the net defined benefit liability			2,220				(134	)			78				(607	)
Total comprehensive income			1,176,358				620,541				592,522				594,431
Net income per share:
Basic and diluted income per share (in Korean Won)			1,556				792				730				757

 

14

3.	Dividend Information

This section has been omitted for quarterly business reports, pursuant to revised Korean regulations. For information on this section, please refer to the Form 6-K furnished to the Securities and Exchange Commission on August 17, 2022 under the title “Summary of 2022 First Half Business Report.”

 

15

IV.	Independent Auditor’s Opinion

 

1.	Independent Auditor’s Opinion

 

		2022 3Q		2021		2020
Auditor		Samil PricewaterhouseCoopers		Samil PricewaterhouseCoopers			Samil PricewaterhouseCoopers
Auditor’s Opinion		Note 1)		Note 2)			Note 3)

Note 1) In its review report attached to this report, Samil PricewaterhouseCoopers has stated that nothing had come to their attention that caused them to believe that the accompanying consolidated and separate interim financial statements of Woori Financial Group are not presented fairly in all material respects, in accordance with Korean IFRS.

Note 2) In its audit report, Samil PricewaterhouseCoopers has stated that the financial statements present fairly, in all material respects, the financial position of Woori Financial Group as of December 31, 2021, and its financial performance and its cash flows for the year then ended in accordance with Korean IFRS.

Note 3) In its audit report, Samil PricewaterhouseCoopers has stated that the financial statements present fairly, in all material respects, the financial position of Woori Financial Group as of December 31, 2020, and its financial performance and its cash flows for the year then ended in accordance with Korean IFRS.

 

2.	Compensation to the Independent Auditor

 

a.	Audit Services

 

Term

Auditor

Description

Contractual

Actual

Fee

Time

Fee

Time

2022 3Q

Samil PricewaterhouseCoopers

1Q/1H/3Q Review Closing audit (including internal accounting management system)

KRW 1,068 million

9,380 hours

KRW 611 million

4,187 hours

2021

Samil PricewaterhouseCoopers

1Q/1H/3Q Review Closing audit (including internal accounting management system)

KRW 1,172 million

10,450 hours

KRW 1,172 million

9,962 hours

2020

Samil PricewaterhouseCoopers

1Q/1H/3Q Review Closing audit (including internal accounting management system)

KRW 1,135 million

10,400 hours

KRW 1,135 million

10,514 hours

Note 1) Fee excludes VAT

Note 2) Time includes planning time up until the commencement of the applicable services

 

b.	Other Audit Services

Not Applicable

 

16

c.	Current Status of Audit Service Agreements with the Independent Auditor Relating to U.S. Listing

 

Term		Auditor		Description		Fee
2021		Samil PricewaterhouseCoopers		U.S. PCAOB standard audit of consolidated financial statements and internal control over financial reporting (for FY2022)		KRW 2,240 million
				U.S. PCAOB standard audit of consolidated financial statements and internal control over financial reporting (for FY2021)		KRW 2,370 million
2020		Samil PricewaterhouseCoopers		U.S. PCAOB standard audit of consolidated financial statements and internal control over financial reporting (for FY2020)		KRW 2,280 million

Note 1) Fee excludes VAT

 

d.	Non-Audit Services

 

Term

Date of Execution of Agreement

Description of Service

Service Term

Fees

2022 3Q

March 30, 2022

Tax adjustment (including review relating to application of consolidated tax)

April 1, 2022 ~ May 31, 2023

KRW 64 million

2021

March 29, 2021

Tax adjustment (including review relating to application of consolidated tax)

June 1, 2021 ~ May 31, 2022

KRW 61 million

2020

July 9, 2020

Tax adjustment (including review relating to application of consolidated tax)

July 9, 2020 ~ May 31, 2021

KRW 61 million

Note 1) Fee excludes VAT

 

17

V.	Corporate Governance

This section has been omitted for quarterly business reports, pursuant to revised Korean regulations. For information on this section, please refer to the Form 6-K furnished to the Securities and Exchange Commission on August 17, 2022 under the title “Summary of 2022 First Half Business Report.”

 

VI.	Shareholder Information

 

1.	Share Distribution

 

a.	Share Information of the Largest Shareholder and Specially Related Parties

 

As of September 30, 2022		(units: shares, %)
Name		Relation				Type		Shares Held																Notes
								Beginning balance Note 2)								Ending balance
								Number				Share				Number				Share
Employee Stock Ownership Association of Woori Financial Group			The largest shareholder			Common			38,859,717				5.33				40,424,901				5.55				—
Employee Stock Ownership Association of Woori Bank			Specially related party of the largest shareholder			Common			32,630,581				4.48				28,608,064				3.93
Total						Common			71,490,298				9.82				69,032,965				9.48				—
						Others			—				—				—				—				—

Note 1) The largest shareholder changed on December 9, 2021 due to the Korea Deposit Insurance Corporate’s sale of Woori Financial Group’s equity shares. Refer to the prior disclosure on Form 6-K on December 10, 2021, “Changes in the Largest Shareholder” for further details.

Note 2) Beginning balance is as of December 31, 2021.

 

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b.	Changes in the largest shareholder

 

As of September 30, 2022

(units: shares, %)

Change of Date

Largest Shareholder

Number Held

Share

Notes

April 9, 2021

Korea Deposit Insurance Corporation

110,159,443

15.25

Sale of KDIC’S 14,445,354 shares through after-hours trading Note 1)

August 10, 2021

Korea Deposit Insurance Corporation

110,159,443

15.13

Issuance of new common shares (5,792,866 shares) Note 2)

December 9, 2021

Employee Stock Ownership Association of Woori Financial Group and others 1

71,346,178

9.80

ESOA’s purchase of 1.00% of the KDIC’s remaining shares of Woori Financial Group (8.80% share already held) Note 3)

Note 1) Refer to the prior disclosures on Form 6-K on April 13, 2021, “Change in the Number of Shares Owned by the Largest Shareholder of Woori Financial Group” for further details.

Note 2) Comprehensive stock exchange between Woori Financial Group and Woori Financial Capital

Note 3) Refer to the prior disclosure on Form 6-K on December 10, 2021, “Changes in the Largest Shareholder” for further details.

 

c.	Share Ownership of More Than 5%

 

As of September 30, 2022

(units: shares, %)

Name

Shares

Notes

No. of shares

Percentage of shareholding

Share ownership of more than 5%

National Pension Service

57,204,081

7.86

Note 1

)

Nobis1, Inc. (IMM PE)

40,560,000

5.57

Note 2

)

Employee Stock Ownership Association

69,032,965

9.48

The largest shareholder Note 3

)

Note 1) Based on the disclosure of the National Pension Service on August 2, 2022

Note 2) As of June 30, 2022 based on the shareholder registry

Note 3) Total shares of the employee stock ownership associations of Woori Financial Group and Woori Bank as of September 30, 2022

 

2.	Stock Price and Stock Market Performance

 

a.	Domestic Stock Market

 

																								(units: Won, shares)
Period				April 2022				May 2022				June 2022				July 2022				August 2022				September 2022
Common Shares		High			16,200				15,700				14,900				12,200				12,450				11,950
		Low			14,750				14,200				12,050				11,000				11,750				10,700
		Average			15,426				15,019				13,610				11,683				12,123				11,498
Monthly Trade Volume		High			5,016,438				25,912,180				26,978,864				4,041,303				5,496,204				4,009,821
		Low			679,329				1,603,983				1,658,177				1,361,105				1,345,945				1,203,409
		Monthly Total			47,668,049				90,932,722				83,389,627				52,669,461				46,727,144				45,895,743

Note 1) Source: KRX KOSPI Market

Note 2) Share prices are based on closing prices.

 

19

b.	Foreign Stock Market (NYSE)

 

																				(units: US Dollars, Won, ADSs)
Period				April 2022				May 2022				June 2022				July 2022				August 2022				September 2022
ADS		High			39.51				37.22				36.25				27.93				28.53				25.48
		Low			34.62				33.77				28.05				25.42				26.35				22.32
		Average			37.53				35.71				32.41				26.86				27.39				24.53
Won Conversion		High			48,850				47,109				44,892				36,303				37,160				35,524
		Low			43,947				42,864				36,041				33,300				35,512				32,025
		Average			46,252				45,344				41,395				35,114				36,118				34,132
Monthly Trade Volume		High			43,556				261,150				114,808				99,681				150,298				107,140
		Low			11,861				11,750				15,111				25,687				24,637				42,219
		Monthly Total			413,158				1,222,701				1,152,461				1,093,739				1,366,146				1,432,447

Note 1) Source: standard trading rate (daily and monthly average) (Seoul Money Brokerage, www.smbs.biz)

Note 2) One ADS represents three common shares.

Note 3) Share prices are based on closing prices.

 

20