OK Financial Group has been selected as the preferred bidder for the public sale of Yebyeol Insurance. Once the sale process is completed, it is expected to accelerate the management normalization efforts of Yebyeol Insurance.
The Korea Deposit Insurance Corporation announced on July 10 that OK Financial Group was chosen as the preferred bidder following the bidding results for the public sale of Yebyeol Insurance, which closed on June 30.
Yebyeol Insurance was established as a bridge insurance company after acquiring the insurance contracts of MG Insurance, which was designated as a troubled financial institution by the Financial Services Commission in 2022. The company has attempted several public sales in the past, but all efforts were unsuccessful, making this sale process effectively the last chance.
In this bidding process, the Korea Deposit Insurance Corporation received final acquisition proposals from four companies, including OK Financial Group, Korea Investment Holdings, Heungkuk Fire & Marine Insurance, and JC Flower. Following this, a preliminary review of the acquisition requirements, evaluation of requested financial support, and assessment of contract execution capabilities were conducted.
According to financial industry sources, OK Financial Group's financial stability and detailed management normalization roadmap were highly regarded.
OK Financial Group is recognized for its risk management capabilities, having successfully acquired Yejoo and Yena Savings Bank, which were managed by the Korea Deposit Insurance Corporation in 2014, and transforming it into the current OK Savings Bank, now ranked second in the industry.
Additionally, during the past acquisitions of savings banks and Korea Citi Capital (now OK Capital), the group diligently fulfilled the eligibility review procedures for major shareholders as required by relevant laws.
The Korea Deposit Insurance Corporation will grant an exclusive negotiation period to the preferred bidder and proceed with subsequent steps, including sale negotiations and the signing of a stock purchase agreement (SPA).
Once the acquisition is finalized, OK Financial Group is expected to evolve into a comprehensive financial group with a core portfolio encompassing three sectors: savings banks, capital, and non-life insurance, by adding Yebyeol Insurance to its existing OK Savings Bank and OK Capital.
An official from OK Financial Group stated, "Beyond simple business expansion, we will fulfill our responsibilities as a financial institution for the public by ensuring the safety of assets for 1.22 million policyholders and contributing to the normalization of troubled financial institutions."
The Korea Deposit Insurance Corporation expressed its commitment to completing the sale process as quickly as possible to protect policyholders and facilitate the normalization of Yebyeol Insurance.
* This article has been translated by AI.
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