Welcome Group Heir Son Dae-hee Nears Full Control Pending F&D Stake Transfer

The executive candidate recommendation committee of Welcome Savings Bank on the 6th recommended Son Dae-hee, president of Welcome F&D and eldest son of Chairman Son Jong-joo, as the next chief executive officer. The key issue is corporate governance. Welcome Savings Bank's management succession is being carried out through a complex cross-shareholding structure among affiliates. Market observers point out that the management succession of a financial group holding a savings bank with 6 trillion won ($4.4 billion) in assets is proceeding in a relatively opaque manner.

According to financial industry sources on the 23rd, Welcome Savings Bank is 100% owned by its parent company Welcome Creditline. Welcome Creditline's ownership is in turn divided among IT affiliate Welcome F&D (18.43%), DS Holdings (18.10%), Chairman Son (16.23%), Welix Financial (13.79%), Coram Duol (12.32%), and KML Ventures (10.5%), among others.

Of these, DS Holdings is 100% owned by President Son, the eldest son, and he also holds 55% of Welix Financial. Those two stakes alone amount to 32.22% of Welcome Creditline. The critical piece is Welcome F&D, whose shares are held by Chairman Son at 50.1%, Welix Financial at 40%, and President Son at 9.9%. Considering that President Son controls Welix Financial, if just 501 shares of F&D are transferred to President Son's side, he would secure "50% plus one share," giving him majority ownership of the company that sits at the apex of the group's governance structure.

Under these circumstances, if President Son becomes CEO of Welcome Savings Bank, the management succession is expected to accelerate further. An industry official in the savings bank sector said, "It does not seem desirable to reach the top of a group through affiliates without notable management achievements or verification," adding, "Since savings banks are financial institutions that require major shareholder fitness reviews, regulatory scrutiny is needed."

Indeed, the Welcome Financial Group has a significant dependence on related-party transactions. As of the end of 2024, Welcome F&D's revenue from transactions with related parties such as Welcome Creditline and Welix F&I Lending amounted to 15.5 billion won, accounting for 94% of its total revenue of 16.4 billion won. Welcome F&D also holds 73.7 billion won in loans to related parties including Welix Partners, Welix Investment, and DS Holdings.

Overseas operations also remain highly volatile. Welcome F&D alone recorded a net loss of 23.9 billion won in 2024. Its overseas subsidiaries in the Philippines and Cambodia posted losses of 1 billion won and 1.7 billion won, respectively, in 2024, reflecting significant earnings fluctuations. Korea Ratings noted in December last year, "Welcome Creditline is using available funds to support affiliates, and uncertainty exists over fund recovery as affiliates' debt repayment capacity is insufficient," adding, "Financial burden could increase if additional support such as payment guarantees or collateral provision continues."

Welcome Financial Group stated, "President Son has been in charge of AI and digital operations, and he has the qualifications to lead the company's transformation," adding, "This CEO appointment is a matter of responsible management by the major shareholder."