Woori Bank, a South Korea-based bank, reportedly has agreed to buy Malis Finance, a Cambodian microfinance institution (MFI), for KRW 5 billion (USD 4.95 million) with the aim of furthering its goal of international expansion. According to a statement attributed to an unnamed Woori official, “it’s difficult to develop a (stable) business model in Cambodia due to its low levels of economic development, so [the company has] decided to first gain more expertise in the market by trying our hand in the microfinancing business and gradually [moving] on to banking.” The South Korean Financial Services Commission, the governmental authority charged with financial regulation in the country, reportedly has approved the deal, however the two parties are still waiting on approval from Cambodian authorities before the deal can be finalized [1].
Malis Finance was established in Phnom Penh in 2011. Financial information for the institution is unavailable. As of fiscal year-end 2013, Woori reported total assets of KRW 244 trillion (USD 241 billion) and total liabilities of KWR 232 trillion (USD 230 billion) [2].
By Benjamin Krupp, Research Associate
About Woori Bank
Woori Bank is a Seoul-based bank providing financial services in South Korea as part of the Woori Financial Group. Woori Bank has approximately 1,000 branches in the country. As of fiscal year-end 2013, Woori reported total assets of KRW 244 trillion (USD 241 billion) and total liabilities of KWR 232 trillion (USD 230 billion). As of 2014, the bank is moving to acquire Malis Finance, a microfinance institution in Cambodia.
About Malis Finance
Malis Finance is a Cambodian microfinance institution (MFI) that was established in 2011 in Phnom Penh. The institution seeks to improve the economy and standard of living in the country through microloans to individuals and businesses. Financial information on the firm is unavailable. As of July 2014, Woori Bank of South Korea is in the process of finalizing a deal to purchase Malis.
Sources and Additional Resources
[1] The Korea Herald: Woori to Buy Cambodian Microfinance Institution
[2] Woori Bank: Statement of Financial Position
MicroCapital, May 28, 2014: Amret Receives $10m Loan from Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW) for Micro-, Small, Medium-Sized Enterprises (MSMEs) in Cambodia
MicroCapital, April 28, 2014: Savings for Change Reaches 85k Member in Cambodia, 680 Worldwide
MicroCapital, May 4, 2012: South Korea Donate $1m to International Finance Corporation (IFC) to Support Small and Medium-sized Enterprises
MicroCapital, January 6, 2010: Conglomerate Enter the Microfinance Industry in South Korea Via the Government-Inspired Miso (Smile) Microcredit Foundation
MicroCapital Universe Profile: Woori Bank
MicroCapital Universe Profile: Malis Finance
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