Business Context and Reporting Period
This Form 6-K filing by Woori Financial Group Inc. (Woori Bank) covers the month of March 2018. The report discloses a material legal event involving the bank and its subsidiary, Woori America Bank, as required under Republic of Korea disclosure regulations.
Key Financial Metrics
The filing does not provide current revenue, profit, cash flow, or margin data for the reporting period. The only financial figure disclosed is the bank's total equity as of December 31, 2017, which was KRW 20,564,900,136,507. This equity figure is referenced to establish the materiality threshold for the lawsuit disclosure.
Material Changes and Legal Contingency
On March 26, 2018, AJ Energy LLC filed a lawsuit against Woori Bank and Woori America Bank in the Supreme Court of the State of New York. The plaintiff seeks recovery of EUR 8,000,000,000 (approximately KRW 10,485,600,000,000), plus accrued interest and legal fees. This claim amount exceeds 2.5% of the bank's total equity, triggering the mandatory disclosure requirement.
- Allegation: AJ Energy claims Woori Bank failed to pay funds allegedly transferred from foreign investors.
- Bank's Position: Woori Bank and Woori America Bank have no record of receiving such funds. The alleged transferring bank confirmed no transfer occurred. The bank suspects the evidence provided by AJ Energy, including SWIFT messages, may be forged.
- Status: The complaint has not yet been formally delivered to Woori Bank, though the bank was notified by its subsidiary on March 30, 2018.
Management Commentary and Outlook
Management expects to obtain a favorable outcome in this litigation. The bank explicitly states it does not anticipate the matter will have a material adverse effect on its financial condition.
Investor Verification Checklist
- Verify the current status of the lawsuit filed by AJ Energy LLC in the New York Supreme Court.
- Confirm the bank's legal defense strategy regarding the alleged forged SWIFT messages.
- Monitor future filings for any updates on the litigation or potential financial provisions related to the EUR 8 billion claim.
- Review the bank's total equity figures in subsequent reports to assess the claim's relative size over time.