The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
  • Beijing Olympics
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Finance
  • Companies
  • Economy
  • Markets
Wed, February 2, 2022 | 21:28
Markets
Will KDB Life find buyer this time?
Posted : 2019-09-29 19:58
Updated : 2019-09-30 18:57
Print Preview
Font Size Up
Font Size Down
KDB Life Insurance CEO Chung Jae-wook
KDB Life Insurance CEO Chung Jae-wook

Official sales notice to be announced today

By Jhoo Dong-chan

Korea Development Bank (KDB) is gearing up once again to sell KDB Life Insurance, the state-run bank's life insurance unit, the bank said Sunday.

KDB has put up its life insurance unit for sale three times before, but has so far failed to find a buyer.

Reflecting KDB Life's solid earnings this year, however, the state-run bank displayed confidence in selling its life insurance unit this time. It added it will also look for a possible buyer abroad.

Industry observers agreed this might be the best time to sell the firm but the task seems still too high considering the nation's ever-worsening insurance market environment.

The bank said it will officially announce its notice to sell KDB Life today. The move is considered to select a preferred bidder by the end of the year.

KDB acquired the then Kumho Life Insurance in 2010 when Kumho Asian Group underwent a large-scale restructuring. The group had suffered a cash shortage after posting a stream of operating losses for years.

The state-run bank acquired the then ailing Kumho Life jointly with Consus Asset Management for 650 billion won ($540.9 million). KDB and Consus Asset Management jointly set up KDB Consus Value, a private equity firm (PEF) to operate the life insurer.

The insurer later changed its name into the KBD Life Insurance, and increased capital by issuing new stocks several times to secure additional cash.

In the meantime, KDB attempted to sell the life insurer three times between 2014 and 2016 only to fail.

The PEF currently owns a 65.8 percent stake while KDB separately holds a 26.93 percent stake.

KDB is seeking to sell its entire 92.73 percent stake including its shares owned indirectly through KDB Consus Value.


"The timetable for the KDB Life sale is a bit tight, but I believe it's an interesting firm for sale," a KDB official was quoted as saying.

"KDB Life boasted solid earnings for the past year while demonstrating strong cash reserve. We failed to sell it three times before, but it will be different this time."

According to the Financial Supervisory Service, the risk-based capital (RBC) ratio of KDB Life stood at 232.66 percent as of end of the second quarter.

The RBC requirement refers to a rule that establishes minimum regulatory capital for financial institutions. The government recommends firms to feature over a 150 percent RBC ratio.

Industry insiders said, however, the sale would face a high hurdle considering the nation's ever-worsening market situation.

"KDB Life has strengthened its earnings as well as cash reserve. As they believe, this could be the right time," said a major insurance firm official who asked not to be named.

"Separate from its solid earnings, the nation's insurance market is already too saturated. If the firm fails to display its future competitiveness to possible investors, it will be difficult for KDB to sell its life insurance unit this time as well."




Emailjhoo@koreatimes.co.kr Article ListMore articles by this reporter



 
  • Lunar New Year: A time for 'manly sport'
  • Metaverses, shamanism and Christianity
  • A closer look at COVID-19 home treatment in Korea
  • Korea urged to explore ways to reduce China reliance
  • Indian students in Korea feel pinch due to soaring airfare
  • Daily life in Beijing as 2022 Winter Olympic Games kick off [PHOTOS]
  • Market Kurly, SSG.com uneasy about IPO amid plunging stock market
  • The crisis of democracy: John Adams and Plato
  • Israeli, German embassies pay tribute to Holocaust victims
  • Woowa Brothers pressed to earn more for Delivery Hero
  • Dark side of non-celebrities shooting to fame on reality TV shows Dark side of non-celebrities shooting to fame on reality TV shows
  • [INTERVIEW] Choi Woo-shik shares pressure of returning to TV with 'Our Beloved Summer' [INTERVIEW] Choi Woo-shik shares pressure of returning to TV with 'Our Beloved Summer'
  • Not-to-miss art exhibitions, fairs in 2022 Not-to-miss art exhibitions, fairs in 2022
  • Singer Chris Brown sued for rape Singer Chris Brown sued for rape
  • Jimin of BTS tests positive for COVID-19 Jimin of BTS tests positive for COVID-19
DARKROOM
  • Daily life in Beijing as 2022 Winter Olympic Games kick off [PHOTOS]

    Daily life in Beijing as 2022 Winter Olympic Games kick off [PHOTOS]

  • Celebrating Lunar New Year amid the ongoing pandemic

    Celebrating Lunar New Year amid the ongoing pandemic

  • Daily life in Afghanistan under Taliban rule

    Daily life in Afghanistan under Taliban rule

  • How snow looks around the world

    How snow looks around the world

  • Pictures of the year 2021

    Pictures of the year 2021

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group