OK Financial Group has signed a main contract for the acquisition of Yebyeol Insurance, expanding its business into the insurance sector following its ventures into savings banks and capital.
On October 7, OK Financial Group announced that it had entered into a stock purchase agreement with the Deposit Insurance Corporation for Yebyeol Insurance. Yebyeol Insurance was established as a bridge insurance company, taking over the insurance contracts of MG Insurance, which was designated as a troubled financial institution in 2022.
OK Financial will proceed with the necessary procedures for the acquisition of Yebyeol Insurance, including obtaining approval for a change of major shareholders from the Financial Services Commission. Once these procedures are completed, the Deposit Insurance Corporation will provide financial support as stipulated in the contract and finalize the sale by transferring shares.
Upon completion of the acquisition, OK Financial will broaden its business scope to include insurance. Previously, OK Financial acquired Yejoo and Yenarae Savings Banks in 2014, leading to the establishment of OK Savings Bank, and later expanded into the capital sector by acquiring Korea Citi Capital.
OK Financial has prioritized the protection of policyholders and the normalization of management, planning to enhance Yebyeol Insurance's key soundness indicators above the standards set by financial authorities through the support of the Deposit Insurance Corporation and its own capital increase.
Additionally, due to the deterioration of Yebyeol Insurance's performance, an additional investment of over 110 billion won will be necessary, prompting discussions to expedite the timing of investment fund deployment significantly ahead of initial expectations.
Furthermore, with the signing of this stock purchase agreement, OK Financial plans to establish a practical task force team. The company also intends to increase Yebyeol Insurance's workforce from the current 260 to between 500 and 600, with plans to hire across all sectors, including CEO, operations, sales, and risk management.
An official from OK Financial Group stated, "We have experience in acquiring troubled savings banks and growing to become the second-largest in the industry. We will strive to establish Yebyeol Insurance as a trusted property and casualty insurer in the market."
* This article has been translated by AI.
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