Semiconductor equipment firm's turnaround: how Woori Bank saw what others missed

Company A, a specialist in maintenance equipment used in ultrapure water processes for semiconductor manufacturing, is riding high these days as the industry's recovery fuels a surge in business.

Just over a year ago, however, such optimism would have seemed far-fetched. Far from benefiting from any semiconductor boom, the company was buckling under mounting financial pressure after a prolonged industry downturn. Requests to its primary bank for working capital loans were repeatedly turned down on the grounds of poor financial health.

That is when Woori Bank stepped in. Two of the bank's relationship managers visited the company directly, assessed the growth potential of the semiconductor industry and the strength of Company A's proprietary technology, and proposed a loan. The support went beyond financing — the bank also provided business consulting in partnership with the Korea Technology Finance Corporation.

With the immediate cash crunch resolved through Woori Bank's support, Company A rode the semiconductor sector's recovery back onto a growth track. Sales in the first half of this year reached 8.3 billion won ($6.18 million), up 58.36 percent from the same period a year earlier. The financing also marked the start of a close primary banking relationship between the two.

Behind Company A's revival was Woori Bank's corporate finance unit BizPrime RM, which specializes in identifying innovative companies with little prior banking history and steering struggling firms back to stability through financial and advisory support. Launched in 2022, the unit now operates 14 BizPrime centers across the Greater Seoul area, the Yeongnam region, the Honam region and the Chungcheong region.

BizPrime RM looks beyond a company's financial statements to assess potential that numbers alone cannot capture. Relationship managers conduct a comprehensive analysis of a company's technological capabilities and the growth outlook of its target market, while a dedicated review team carries out on-site due diligence and gathers input from industry specialists. That approach is precisely what allowed Company A — a firm that would have struggled to secure a loan on its financials alone — to receive funding.

"Today, with the semiconductor boom in full swing, everyone is rushing to offer support — but just a year ago, very few banks had the foresight to see that massive industry shift coming," said Kim Dae-ryeong, Deputy Branch Manager of Woori Bank's Gangnam BizPrime Corporate Team 2. "Relationship managers need to be able to scrutinize the entire supply chain with the eye of an investor."

In 2024, Company B, which operates subscription-based fitness centers, was also struggling with depleted working capital and considering a loan. Most banks declined, citing the high fixed costs inherent to the fitness business and a wave of controversy over operators absconding with membership fees. BizPrime RM, however, determined that the company had sufficient operational stability — including a fully company-owned branch model — and extended the loan. As a result, Company B's sales grew from 38.7 billion won in 2024 to 61 billion won the following year.

Through this approach, BizPrime RM supplied 3.9 trillion won ($2.91 billion) in productive finance between October last year and this September. Over the same period, Woori Financial Group disbursed a total of 33.3 trillion won in productive finance through its Future Co-Growth Project — meaning the roughly 150-strong BizPrime RM team accounted for 11.7 percent of that total.

Woori Bank plans to position BizPrime RM as the frontline of its productive finance push. Woori Bank President Jeong Jin-wan said earlier this year that the Gangnam BizPrime RM would serve as a forward base for productive finance. In line with its five-region, three-specialty organizational framework, the bank also plans to soon launch region-specific products and guarantee products exclusively for companies outside the Greater Seoul area, to ease the financial burden on businesses in those areas. It is also preparing an integrated financial solution that goes beyond simple capital provision to encompass foreign exchange-linked services and retirement pension products.