Cebu-based Vicsal Development Corp. (Vicsal) recently entered into an investment agreement with Woori Bank of South Korea, enabling a strategic alliance between the Korean bank and Vicsal subsidiary Wealth Development Bank Corp. (WealthBank).
The joint venture combines the global and technical resources of Woori Bank and the Philippine regional business conglomerate.
“It is a strategic initiative in response to the liberalization of the country’s banking sector,” said WealthBank Chairman Dr. Edward Gaisano in a statement.
Gaisano said the deal is expected to increase WealthBank’s net worth by threefold, strengthen its balance sheet, and deepen its market reach and product offerings.
WealthBank is one of the country’s fastest growing independent thrift banks, expanding from just one branch in 2002 to 16 branches across the country today. The bank has close to P7 billion in assets.
Under the partnership, WealthBank will leverage on the vast world class facilities and expertise of Woori Bank as well as the opportunity to tap into the 1.2 million Korean tourists who visit the Philippines yearly, and the 100,000-strong Korean expatriate community in the country.
The partnership will also enable WealthBank to cater to overseas Filipino workers (OFWs) in South Korea, as well as local and Korean small and medium enterprises (SMEs).
Woori Bank, on the other hand, is the oldest and one of the largest banks in Korea. It has the largest Korean bank overseas network with presence in 18 countries.
Vicsal has recently strengthened its strategic alliances through joint ventures with other leading global companies such as Ayala Land, Megaworld Corp., and Hong Kong Land.
Its retail unit, Metro Retail Stores Group, Inc., was recently listed in the Philippine Stock Exchange.