KDB Life Insurance, which became Aemul Complex… Korea Development Bank, pushes for resale

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[이데일리 전선형 노희준 기자] The resale of KDB Life is expected to be pursued. This is a follow-up measure following the failure of the sale of JC Partners, a preliminary acquirer, as it failed to meet the requirements for a major shareholder.

(Photo=KDB Life Insurance)

According to the financial industry on the 27th, KDB is promoting the resale of KDB Life through KDB Consus Value Private Equity (KCV). Although the specific sale plan has not been determined, the financial and investment banking (IB) industry is predicting that the resale operation will begin in earnest in June.

Regarding this, an official from the Korea Development Bank said, “At present, no specific schedule for the sale of KDB Life has been decided.”

Earlier, KDB announced that it would cancel the stock purchase agreement (SPA) for the sale of KDB Life Insurance signed with JC Partners, a private equity fund manager (PEF). Another insurance company owned by JC Partners, MG Non-Life Insurance, was designated as an insolvent financial institution by the financial authorities, so it did not meet the requirements for a major shareholder.

MG Insurance was designated as an insolvent financial institution on the 13th, as it was judged that it had fallen into a state of capital erosion in an asset and liabilities due diligence conducted by the financial authorities. In particular, JC Partners, the major shareholder, is said to have had difficulties in raising funds, such as failing to comply with the capital increase schedule.

Some in the IB industry are predicting that Cactus Private Equity (PE) will take over KDB Life Insurance together with KG Group. Regarding this, a KG group official dismissed it as “the promotion of KDB Life Insurance together with Cactus PE, which is being discussed in some parts of the market, is groundless.”

KDB is deeply concerned about the sale of KDB Life.

After acquiring Kumho Life Insurance, which had gone bankrupt during the restructuring process of Kumho Asiana Group in 2010, the company changed its name to KDB Life and has been holding it for over 10 years. The sale was pursued four times, twice in 2014, once in 2016, and once in 2020, but all failed, raising concerns about the quality of KDB.

In particular, the financial industry believes that Korea Development Bank is repeatedly failing to sell KDB Life hastily. In order to reduce the size of the company, the company underwent restructuring, such as drastically reducing the sales force, and as a result, sales competitiveness was lowered. It is also the reason why the business situation worsened despite the investment of 1 trillion won.

Meanwhile, the current market is discussing the sale price of KDB Life at around 200 billion won.

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