Gaisano bank takes in Korean partner

THE GAISANO family has enlisted Woori Bank of South Korea as a strategic partner in thrift bank subsidiary Wealth Development Bank Corp. to boost the banking unit amid a competitive local banking landscape.

Cebu-based Vicsal Development Corp. (Vicsal), parent firm of Wealth Development, announced the forging of an investment agreement with Woori Bank, creating a strategic alliance between the South Korean bank and one of the country’s leading thrift banks.

The joint venture combines the global and technical resources of Woori Bank and Viscal. However, the statement did not disclose how much economic interest the South Korean partner would get in this venture.

“It is a strategic initiative in response to the liberalization of the country’s banking sector,” WealthBank chair Edward Gaisano said.

Gaisano said the deal was expected to increase the net worth of the thrift bank by threefold, strengthen its balance sheet and deepen its market reach and product offerings.

WealthBank claims to be one of the country’s fastest growing independent thrift banks, expanding from just one branch in 2002 to 16 across the country today. The bank has close to P7 billion in assets.

Under the partnership, WealthBank plans to ride on the world-class facilities and expertise of Woori Bank. It also targets to serve 1.2 million Korean tourists who visit the Philippines yearly and the 100,000-strong Korean expatriate community in the country.

The partnership also seeks to allow WealthBank to cater to overseas Filipino workers in South Korea, as well as local and Korean small and medium enterprises.

“This partnership with Woori Bank will unlock the huge potential of WealthBank. We are excited about the joint venture as it further underscores our commitment to growth through collaboration with world-class companies,” Gaisano said.

Vicsal recently strengthened its strategic alliances through joint ventures with other leading global companies such as Ayala Land, Megaworld Corp. and Hong Kong Land.

Retail unit, Metro Retail Stores Group Inc. (MRSGI), recently debuted on the Philippine Stock Exchange.

The Cebu-based Gaisanos trace their roots to an entrepreneurial family with a long retailing heritage dating back to the 1930s. From one of the many branches of the Gaisano family sprang the lineage of Victor, who decided to go on his own and, with wife Sally, opened his first store in Colon, Cebu, in 1982. This marked the beginning of MRSGI, which didn’t use the storied surname as part of a deliberate strategy to carve its distinct identity and avoid mix-up with similar businesses operated by relatives.

Aside from banking and retailing, Vicsal is also into real estate development through the Taft Property Venture Development Corp. and in financial management through AB Capital. Vicsal is also the majority owner of Filipino Fund Inc., a closed-end mutual fund listed on the local bourse.

Viscal and its various businesses are now run by the second generation Gaisanos: Margaret, Jack, Edward and Frank. Doris Dumlao-Abadilla