Sisa Today | [CEO’s D-DAY (4)] Woori Card President Jeong Won-jae, Who Created ‘Card of the Essentials’… Will Reappointment Also Go by the Book?

[CEO's D-DAY (4)] Woori Card President Jeong Won-jae, Who Created 'Card of the Essentials'... Will Reappointment Also Go by the Book?

Card of the Essentials series... surpasses 5 million accounts 20 months after launch

Earnings hold steady despite external uncertainty from fee-rate cuts

Will reappointment happen amid influence of becoming a 100%-owned Woori Financial Group subsidiary?

Reporter Jeong Woo-gyo | Approved 2019.12.03 16:54

(Sisa Today, Sisa ON, Sisa On = Reporter Jeong Woo-gyo)

As the year-end approaches, the fates of financial-sector CEOs are being discussed. Some have already announced reappointment, while CEOs with ambiguous report cards face an uncertain future. The CEOs currently under discussion in the securities, insurance, and card industries all have terms ending by March of next year at the latest. With roughly 120 [sic] days remaining in the current situation, we forecast their future paths based on the achievements they have built. <Editor's note>

Woori Card President Jeong Won-jae ⓒWoori Card

Woori Card President Jeong Won-jae is currently rated as one of the card company CEOs most likely to be smoothly reappointed. Besides Woori Card, three other card companies have terms expiring by March of next month, and outlooks for each CEO diverge. Among them, considerable analysis suggests that the success of the 'Card of the Essentials' series and steady earnings will have a positive effect on President Jeong's future path.

Card of the Essentials series... surpasses 5 million accounts 20 months after launch

The 'Card of the Essentials' series is counted among President Jeong Won-jae's achievements in the card industry.

Recently, the company announced an event marking the milestone of surpassing 5 million accounts 20 months after last year, along with the launch of the new product 'Card of the Essentials K-CHECK.' Since its debut in April last year, the series has shown unusual growth, surpassing 2 million accounts just 8 months after launch in December last year, and topping 4 million accounts in July this year.

Indeed, according to first-half earnings, Woori Card's credit card assets reached the 8 trillion won mark, up 5.2% from the same period last year. Also, the number of active members reached 6.902 million, a 3.91% increase over the same period.

Woori Card has consistently emphasized that the 'Card of the Essentials' series is a product tailored to customers' direct participation and payment market trends. It also drew attention inside and outside the industry for using Korean painter Kim Hyun Jung's artwork in its collaborations, with President Jeong Won-jae reportedly personally involved in planning and marketing the collaboration.

Earnings "hold steady, hold steady, hold steady" despite external uncertainty

Along with the success of the 'Card of the Essentials' series, Woori Card has also held steady in earnings over the past few years.

For Q3 results earlier this year, the company posted a cumulative net profit of 94.8 billion won. This is about a 7.0% increase from the same period last year; although operating profit declined slightly, non-operating profit rose sharply, boosting quarterly net profit.

Looking at annual profits over the past two years, Woori Card's earnings have also shown a modest upward trend. According to the Financial Supervisory Service's electronic disclosure system, Woori Card posted annual profit of 92.7 billion won in 2017. The following year, this rose 36.4% to 126.5 billion won. General administrative expenses rose slightly by 4.4%, but as interest income and other items increased, annual net profit showed improvement.

The card industry, including Woori Card, is currently focused on overcoming uncertainties such as fee-rate cut policies and generating new revenue. If the expandability and convenience of the Wibee Members service, transferred from Woori Bank last July, is solidified, and the momentum of the 'Card of the Essentials' series continues, the warm mood is expected to continue into the second half as well.

Woori Card headquarters ⓒSisa Today Sisa ON

Becoming a 100%-owned Woori Financial Group subsidiary, addressing non-regular employment... will it ultimately lead to reappointment?

Beyond earnings, Woori Card has undergone many changes this year. Last September, Woori Financial Group officially announced Woori Card's incorporation as a subsidiary. As it became a 100%-owned subsidiary of the financial holding company, there were expectations that follow-up financial support and improvements to business activities would begin. In particular, as the group shares its organizational structure and risk management with the holding company, there are also views that synergies could arise among affiliates and that business and strategy could move in a more stable direction.

In this situation, expectations for the president who has led Woori Card for two years are also likely to deepen further. Even amid external uncertainties such as the card fee-rate cut policy, it is the view of industry officials that his risk management and proactive efforts toward the company's concerns over generating revenue from new fintech businesses stand out.

Furthermore, President Jeong has also shown focus on organizational capability and workforce management during his tenure. Cases such as hiring 180 non-regular workers as regular employees earlier this year and receiving a commendation from the Ministry of Employment and Labor's 'Non-regular Employment Structure Improvement Support Group' are cited as evidence that internal organizational capability has been steadily built. Attention in the industry is focused on whether this report card will have a positive effect on his reappointment.

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Reporter Jeong Woo-gyo

Written by — Jung U-gyo