Woori Financial Group Inc 's

The Korean financial industry is characterized by intense competition among banks, with strategies centered on managing interest rates to improve margins. Banks have generally maintained relatively low deposit rates and higher loan rates, though this approach may require adjustment due to evolving competition and government regulations. From August 2021 to early 2023, successive interest rate increases in Korea led to higher net interest spreads for many banks, including Woori Bank. The Korean government and the Financial Services Commission have introduced measures to enhance competition, which may result in increased interest rate competition and narrower net interest margins. Competitors such as Woori Bank may face challenges as other financial institutions seek to expand market share through interest rate competition, potentially leading to customer attrition among rate-sensitive clients. In 2025, the Korean government encouraged banks to reduce dependence on mortgage loan interest income, diversify revenue sources, improve loan affordability for low- and middle-income borrowers, and support small businesses and strategic sectors.