Shinhan Financial Group and Korea Investment Holdings are exploring the acquisition of Lotte Insurance. The major shareholder, JKL Partners, has lowered its sale price expectations, reigniting the sale process for Lotte Insurance.
According to financial industry sources on June 29, Shinhan Financial is internally assessing the possibility of acquiring Lotte Insurance. Given Shinhan's relatively weak position in the non-life insurance sector, it is believed that they may participate in the bidding if the price conditions are favorable.
Korea Investment Holdings is also looking into acquiring Lotte Insurance. Reports indicate that Korea Investment recently submitted a Letter of Intent (LOI) for the acquisition and has begun its review process. If successful, this acquisition would allow Korea Investment to expand its business structure from a focus on securities, savings banks, and capital to a comprehensive financial group.
Lotte Insurance is considered one of the more established non-life insurers currently on the market, with a solid business foundation and scale. However, the submission of a management improvement plan has raised concerns about capital adequacy and future solvency management, which are likely to be key factors for potential buyers.
The main variable in the sale is the price. JKL Partners holds a 77.04% stake in Lotte Insurance. While the initial expected sale price was around 2 trillion won, it has reportedly been lowered to approximately 1 trillion won recently. However, considering the potential for a public buyout of remaining shares and the burden of capital expansion post-acquisition, negotiations over the actual sale price are expected to continue.
* This article has been translated by AI.
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