OK Financial Group has been selected as the preferred bidder in the acquisition of Yebyeol Insurance, paving the way for its entry into the insurance sector.
According to financial industry sources on July 9, the Korea Deposit Insurance Corporation has designated OK Financial as the preferred bidder for the sale of Yebyeol Insurance. An official notification of the selection is expected to be communicated to OK Financial as early as July 10. Yebyeol Insurance was established as a bridge insurance company to facilitate the restructuring of MG Non-Life Insurance.
The bidding process for Yebyeol Insurance took place on June 30, with four participants, including OK Financial, Heungkuk Fire & Marine Insurance, Korea Investment Holdings, and JC Flower.
The key factor in the selection of the preferred bidder was reported to be the scale of support funds from the deposit insurance agency. As Yebyeol Insurance is a bridge company for the restructuring of a failing insurer, the acquirer will receive financial support from the agency in exchange for taking over the company.
Industry insiders estimate that the support funds under internal review by the deposit insurance agency are in the early trillions of won. While OK Financial proposed a lower level of support compared to its competitors, the other bidders reportedly requested higher amounts.
According to financial industry sources on July 9, the Korea Deposit Insurance Corporation has designated OK Financial as the preferred bidder for the sale of Yebyeol Insurance. An official notification of the selection is expected to be communicated to OK Financial as early as July 10. Yebyeol Insurance was established as a bridge insurance company to facilitate the restructuring of MG Non-Life Insurance.
The bidding process for Yebyeol Insurance took place on June 30, with four participants, including OK Financial, Heungkuk Fire & Marine Insurance, Korea Investment Holdings, and JC Flower.
The key factor in the selection of the preferred bidder was reported to be the scale of support funds from the deposit insurance agency. As Yebyeol Insurance is a bridge company for the restructuring of a failing insurer, the acquirer will receive financial support from the agency in exchange for taking over the company.
Industry insiders estimate that the support funds under internal review by the deposit insurance agency are in the early trillions of won. While OK Financial proposed a lower level of support compared to its competitors, the other bidders reportedly requested higher amounts.
* This article has been translated by AI.
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