Kyobo Life Insurance Joins the Race to Acquire Yebyeol General Insurance

Strategic Move Toward Becoming a Financial Holding Company

It has been confirmed that Kyobo Life Insurance has joined the race to acquire Yebyeol General Insurance. Yebyeol General Insurance is a bridge insurer temporarily established and wholly funded by the Korea Deposit Insurance Corporation to resolve the insolvency of MG Non-Life Insurance. Following Korea Investment Holdings and Heungkuk Fire & Marine Insurance, Kyobo Life Insurance has also entered the merger and acquisition (M&A) competition.

Seoul Jongno-gu Gwanghwamun Kyobo Life Headquarters Building. Kyobo Life Insurance

According to the insurance industry on June 2, Kyobo Life Insurance recently selected Samjong KPMG as its advisor and has begun due diligence for the acquisition of Yebyeol General Insurance.

Candidates, including Kyobo Life Insurance, are expected to submit their final acquisition proposals for Yebyeol General Insurance on June 30 after completing the due diligence process.

There is analysis that Kyobo Life Insurance's consideration of the acquisition is aimed at transitioning to a financial holding company structure. The lack of a non-life insurance portfolio has been cited as a managerial weakness. The previous day, Kyobo Life Insurance also participated in the preliminary bid for the sale of KDB Life Insurance.

If there are two or more bidders by the proposal deadline of June 30, thereby creating effective competition, a preferred negotiating partner is expected to be selected around the middle of next month.

Meanwhile, KDB Life Insurance, which has seen multiple failed sale attempts, drew attention as Samsung Life Insurance, Hanwha Life Insurance, Kyobo Life Insurance, Heungkuk Life Insurance, and Korea Investment Holdings participated in the preliminary bid held the previous day.

This content was produced with the assistance of AI translation services.