A total of 1,226 small and medium-sized enterprises (SMEs) standing at the crossroads between succession and closure have approached Woori Bank. This surge comes as a full-scale "execution-type corporate succession financial system" — extending beyond simple consultations to include consulting, mergers and acquisitions (M&A), guarantees, and lending — has officially launched. With the aging of business leaders making SME succession an immediate reality, Woori Bank aims to build a productive financial model that safeguards sustainable corporate management alongside regional economies and employment.
According to data from Woori Bank's Corporate Succession Support Center released on the 29th, a total of 1,226 companies have signed business cooperation agreements (MOUs) with Woori Bank in the first half of this year. Considering the center opened in February, this means more than 200 companies have entered into MOUs each month.
By industry, manufacturing accounted for 515 companies (42.0%), followed by wholesale and retail trade with 372 companies (30.3%). Enterprises with fewer than 50 permanent employees comprised 834 cases (68.0%). This indicates that SMEs supporting domestic manufacturing and regional economies, rather than small-scale individual businesses, are primarily seeking the center's assistance.
Regarding the age of business leaders, 71.6% were in their 50s to 60s, while 17.4% were 70 years or older. This highlights that succession issues are no longer distant future challenges but immediate realities facing businesses today.
A Woori Bank Corporate Succession Support Center official stated, "Many companies come to us after struggling with whether to close down, but upon hearing their stories, most are not actually companies that need to shut down." The official explained that many businesses miss critical timing due to a lack of clear solutions despite having technology, business partners, and long-term employees.
Regarding succession methods, 46.8% of companies expressed hope for intergenerational succession within families, while 40.2% are simultaneously considering both succession and sale. The center official noted, "Many companies come thinking only about family succession but return after learning there are other options." The official added, "When children have no intention of taking over the company, we provide multiple alternatives including third-party sales through M&A."
Woori Bank's Corporate Succession Support Center distinguishes itself by connecting consultations directly to actual financial execution. Among contracted companies, 180 cases have already completed consulting services. The center has established an execution-type support system covering corporate valuation assessments, M&A advisory, Korea Technology Finance Corporation guarantee agreements, loan implementation, and matching with acquiring companies. An official emphasized, "Our role is not just to provide consultations but to facilitate actual transactions."
Financial support initiatives are also gaining momentum. In April, Woori Bank signed a "Business Cooperation Agreement on M&A Financial Support for Promoting Corporate Succession and Technological Innovation" with the Korea Technology Finance Corporation, currently operating a guarantee support system totaling approximately 63.8 billion won.
Support mechanisms operate through two channels. The special guarantee program providing 100% guarantees has a limit of 40 billion won, targeting technology innovation-type M&A, corporate succession-type M&A, and restructuring-type business acquisition guarantees. For the initial three years, the Korea Technology Finance Corporation provides 100% guarantees with an annual fee reduction of 0.3 percentage points (P), while Woori Bank reduces its guarantee fees by 0.7 percentage points annually for the first two years. Guarantee fee support operates within a limit of approximately 23.8 billion won.
To date, three special guarantees totaling 16 billion won have been issued and loans executed, with an additional three cases worth 28 billion won currently under review. Woori Bank plans to expand matching support for companies seeking third-party sales by building networks with listed companies and venture holding companies interested in acquiring sound SMEs.
A Woori Bank official stated, "68% of contracted companies have fewer than 50 permanent employees, and 42% operate in manufacturing — businesses that form the backbone of regional economies and industrial sites." The official added, "Corporate succession is not merely about transferring a single company but involves continuing employment, technology, supplier relationships, and supply chains together." Woori Bank plans to continue promoting the need for corporate succession preparation among large corporations and their partner companies.
in FINANCE
