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Woori Financial takes cue from aging Japan
A think tank under South Korea's financial service provider Woori Financial Group published a book Wednesday exploring how Japan adapted to aging demographics, redefined its financial and corporate landscape and what lessons Korea can draw from the transformation.
Titled The Great Shift in Japan's Economy (tentative translation), the book is the result of a yearlong research project conducted by the Woori Finance Research Institute, which included in-person interviews and case studies, looking into the country's corporate culture reforms, digital innovations and changed role of financial institutions.
"While initiatives such as the shareholder return policy were effective, the success of the Japanese financial institutions' value-up strategy was mainly driven by their global business," Woori Finance Research Institute CEO Park Jung-hoon said at a press conference held at the bank's headquarters in central Seoul, Wednesday.
In the book, the think tank delved into the global expansion of Japan's three major financial firms, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group.
Struggling with the Japanese central bank's prolonged monetary easing, the three firms altered in their business targets, setting their sights on global operations.
As a result, their overseas operating profits surged fivefold between 2006 and 2023. Earnings from overseas operations took up roughly 50 percent of the total operating profits for the firms in 2023,more than three times what they did in 2006 — 15 percent.
"It took over 10 years for the Japanese finance firms to bear fruit in their global operations. Korean financial companies have to continuously strengthen their global competitiveness in a long-term perspective,' Park said.
Taking a hint from Japan and its aging society, Woori Financial plans to bolster its senior-targeted operations, too. Having gained the green light from the authorities to acquire Tongyang Life and ABL Life, the finance group is to officially incorporate the insurers into its portfolio in July.
"With the acquisition of the insurers, Woori Financial is looking into how the group can offer senior-targeted financial services. We are studying Japanese cases through business trips, visiting nursing homes, and meeting experts. Woori Finance Research Institute will continue to study how the group can encompass seniors in its business, as it is a meaningful agenda on a national level,' Park said.
