1,226 small and medium-sized enterprises (SMEs) at a crossroads between succession and closure have approached Woori Bank. This comes as an 'executive corporate succession financial system' that extends beyond simple counseling to include consulting, M&A (mergers and acquisitions), guarantees, and lending has officially begun operations. With the aging of business owners making SME succession a pressing reality, Woori Bank is pursuing a strategy to build a productive financial model that safeguards sustainable corporate management alongside regional economies and employment.
According to Woori Bank's Corporate Succession Support Center on the 29th, a total of 1,226 companies have signed Memorandums of Understanding (MOUs) with Woori Bank in the first half of this year. Considering the center opened in February, this means more than 200 companies have signed MOUs each month.
By industry, manufacturing accounted for 515 companies (42.0%), and wholesale and retail trade accounted for 372 companies (30.3%). Establishments with fewer than 50 regular employees comprised 834 companies (68.0%). This indicates that SMEs supporting domestic manufacturing and regional economies, rather than small-scale individual businesses, are the primary users of the center.
Regarding the age of business owners, 71.6% were in their 50s to 60s, and 17.4% were 70 years or older. This highlights that succession issues are no longer a distant future challenge but an immediate reality.
A Woori Bank Corporate Succession Support Center official stated, "Many companies come to us after struggling with whether they should close their doors. Upon listening to their stories, most are not companies that need to be closed." The official explained that many businesses miss the right timing simply because they lack a clear path forward, despite having technology, business partners, and employees who have worked together for years.
Regarding succession methods, 46.8% of companies expressed a desire for family succession, while 40.2% are considering both succession and sale. The center official noted, "Many companies come in thinking only about family succession but return after learning that other options exist." They added, "When children have no intention of taking over the company, we provide various choices together, such as third-party sales through M&A."
The Woori Bank Corporate Succession Support Center distinguishes itself by not limiting services to counseling but connecting them to actual financial execution. Among the contracted companies, 180 have already completed consulting. The center has established an executive support system including corporate valuation and M&A advisory, Korea Technology Finance Corporation (KOTEC) guaranteed agreements, loan execution, and matching with companies interested in acquisition.
Financial support is also ramping up. In April, Woori Bank signed a 'MOU on M&A Financial Support for Promoting Corporate Succession and Technological Innovation' with the Korea Technology Finance Corporation (KOTEC) and is operating a guaranteed support system totaling 63.8 billion won.
There are two types of support. The special guarantee, which provides 100% coverage, has a limit of 40 billion won and targets technology-innovation-type M&A, corporate succession-type M&A, and restructuring-type business acquisition guarantees. Additionally, a guarantee fee support program, where KOTEC waives an annual 0.3 percentage point (P) and Woori Bank waives an annual 0.7 P (for the first two years) on the initial three-year 100% guarantee, operates with a limit of 23.8 billion won.
To date, three special guarantees totaling 16 billion won have been issued and loans executed, while an additional three guarantees totaling 28 billion won are 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 that wish to acquire sound SMEs.
A Woori Bank official stated, "68% of contracted companies have fewer than 50 regular employees, and 42% are in manufacturing; these are the companies supporting regional economies and industrial sites." The official added, "Corporate succession is not merely about handing over a single company but involves continuing employment, technology, and supply chains with partner firms." Woori Bank also plans to continue promoting the need for corporate succession preparation among large corporations and their suppliers.
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