The Financial Supervisory Service will begin regular inspections of Woori Financial Group and Woori Bank next month amid suspicions of unfair lending by relatives of the former holding company chairman.

On the 2nd, the Financial Supervisory Service announced that it would conduct regular inspections to closely examine the financial soundness, operational risk, and overall risk management of Woori Financial Group and Woori Bank.

It has been reported that the Financial Supervisory Service sent a prior notice to Woori Financial Group and Woori Bank regarding the implementation of a regular inspection this afternoon.

The financial sector is expecting that the Financial Supervisory Service will conduct an intensive inspection to investigate the overall management status, including the suspicion of unfair lending to relatives of former Woori Financial Group Chairman Son Tae-seung, as well as the capital adequacy related to Woori Financial Group’s acquisition and merger of Dongyang Life Insurance and ABL Life Insurance.

The Financial Supervisory Service’s regular inspection of Woori Financial Group and Woori Bank is the first in three years since the end of 2021, and the next inspection was scheduled for next year, but it has been reported that the schedule has been brought forward.

Depending on the results of the inspection, there is a possibility that it may affect the insurance company acquisition that Woori Financial Group is pursuing.

Woori Financial Group decided at a board meeting on the 28th of last month to acquire these insurance companies for 1.5493 ​​trillion won and signed a stock purchase agreement with the seller, China Dajia Insurance Group.

However, as a final step, it must pass the major shareholder qualification examination and receive approval from the financial authorities.

Meanwhile, the Financial Supervisory Service plans to begin on-site inspections of Woori Financial Savings Bank, Woori Capital, and Woori Card this week in relation to allegations of unfair lending to former Chairman Sohn’s relatives.

Reporter Yoo Joo-an jayou@wowtv.co.kr