On the 16th, the Korea Deposit Insurance Corporation noted that if the sale of MG Insurance fails, it will consider restructuring options, including liquidation or bankruptcy. Meritz Fire & Marine Insurance, which was selected as the preferred bidder for MG Insurance, has been unable to proceed with due diligence due to opposition from the MG Insurance labor union.
On the same day, the Korea Deposit Insurance Corporation released a report regarding the sale of MG Insurance and stated, "If due diligence ultimately does not proceed, leading Meritz Fire & Marine Insurance to abandon the acquisition, we plan to review restructuring options in consultation with relevant agencies."
The Korea Deposit Insurance Corporation noted, "During the approximately three-year sale process, Meritz Fire & Marine Insurance was the only valid bidder, and finding additional buyers is uncertain." It also stated, "If market conditions do not allow for a sale, it is difficult to rule out the possibility of paying out insurance policyholders' deposit insurance and restructuring through liquidation or bankruptcy."
The Korea Deposit Insurance Corporation has pursued three public sales since MG Insurance was deemed a distressed financial institution in April 2022. As sales continued to fail, the corporation switched to a private contract and selected Meritz Fire & Marine Insurance as the preferred bidder in December of last year. However, the MG Insurance labor union is blocking Meritz Fire & Marine Insurance from conducting due diligence, demanding job guarantees and other conditions.
The Korea Deposit Insurance Corporation stated, "Due to the MG Insurance labor union's obstruction of due diligence, we are in a situation where we cannot commence due diligence." It also mentioned that "the buyer's due diligence is a legitimate procedure, yet the provision of locations and materials is being hindered."
The Korea Deposit Insurance Corporation also mentioned that it is considering legal measures, including a prohibition of interference against the MG Insurance labor union, which is obstructing the due diligence.