Global insurance giant ING Group has selected KB Financial Group as the preferred bidder for its South Korean unit, industry sources said Friday.
According to the sources, KB Financial, Korea's No. 2 financial group, has offered some 2.6 trillion won ($2.3 billion) for ING Life Korea, which was accepted by ING Group. The company had originally put its Korean unit up for sale at around 3.5 trillion won.
"It is true that ING Group selected KB Financial as the preferred bidder (for ING Life Korea)," said a source. "ING Group will officially announce the selection of KB Financial as the preferred bidder."
KB Financial will emerge as South Korea's No. 4 life insurer if things go smoothly, the sources said. South Korea's life insurance market is dominated by the top three players -- Samsung Life Insurance Co., Korea Life Insurance Co., and Kyobo Life Insurance Co.
KB Financial has been struggling to buy the life insurer after deciding not to bid for Woori Finance Holdings Co. amid apparent political pressure. (Yonhap)