Woori Finance Holdings Co. Ltd. plans to spin off its credit card business into a new company to diversify and bolster its nonbanking services, the South Korea-based issuer announced Sept. 18.
The split will go into effect on Dec. 31, and Woori Finance will invest 846.3 billion won (US$740 million or 540 million euros) to establish the new firm, according to a company filing with the Korea Exchange.
Woori Bank Ltd., the group’s banking arm, operates the card business.
Tentatively called the Woori Card, the new card issuer will remain unlisted, according to the filing. Also, the unit’s entire staff will transfer to the new company.
The spin-off follows similar moves across the Korean card market over the past few years. In March, KB Financial Group spun off its KB Kookmin Card unit to help boost the program’s card base and to develop more financial products (
Woori formed in 2001 as a holding company for several financial institutions that required public bailout funds in the wake of the 1998 financial crisis. The South Korean government took over the institutions and recapitalized them, becoming their primary investor.
