We (specifically, attorneys Choi Jin-Sook, Choi Jae-Woong, Kim So-Youn, Song Ye-Na and Lee Seong-Jun) successfully completed the advisory for the sale of special bonds worth approximately KRW 522.6 billion for Woori Bank.

We prepared and reviewed the Loan Sale and Purchase Agreement (LSPA) and the transfer and acquisition contracts for the sale of secured and unsecured bonds, with a total bond amount of approximately KRW 522.6 billion (based on bond principal) for 6,473 borrowers out of Woori Bank's non-performing loans (NPLs). In addition, we reviewed the relevant regulations under the Loan Business Act, Personal Debtor Protection Act, Asset-Backed Securitization Act, and Debt Collection Act, providing advisory services on legal issues arising at each stage of the bond sale.

The sale of bonds by financial institutions, unlike general bond transfers under civil law, must comply with the procedures and methods set forth in the debt collection and loan sale guidelines under the guidance of the Financial Services Commission (FSC). It is also necessary to examine whether the buyer, target bonds, and resale are restricted under the FSC’s agreements with banks, savings banks, etc., such as the Individual Delinquent Debt Purchase Fund Agreement and the Restart Fund Support Agreement. We carefully reviewed the FSC’s press releases, sale guidelines, etc., and confirmed with relevant institutions to ensure that the transaction could proceed within the scope of the FSC’s guidance and agreements.

Amidst the prolonged economic downturn, where non-performing loans (NPLs) at financial institutions are increasing, it is expected that banks will actively sort and sell NPLs under the asset soundness management policy. We, in line with the expansion of the NPL sale market, is actively participating as a legal advisor in NPL sale projects of the five major commercial banks and is providing top-tier legal services based on professional and practical expertise in NPL sales.

□ Attorneys in charge: Choi Jin-Sook, Choi Jae-Woong, Kim So-Youn, Song Ye-Na and Lee Seong-Jun