Korea Deposit Insurance Corporation (KDIC) is pushing to resell YeByeol Non-Life Insurance (formerly MG Non-Life Insurance) after one year.
KDIC said it will conduct a preliminary bid for YeByeol Non-Life Insurance from the 15th to Jan. 23 next year. Among the prospective buyers that submit a letter of intent, those whose eligibility is verified will be given about five weeks for due diligence, after which the main bid will proceed.
Prospective buyers can participate using their preferred method, either stock sale (M&A) or contract transfer (P&A). A stock sale is a method of acquiring all of the company's equity. A contract transfer takes over all insurance contract liability and quality asset of YeByeol Non-Life Insurance, among others.
Korea Deposit Insurance Corporation (KDIC) said, "For the protection of policyholders and the stability of the insurance market, we completed workforce and organizational efficiency measures through smooth consultations among the MG Non-Life Insurance union, the financial authorities, and KDIC," adding, "Even if the open sale is completed, the insurance contracts will be transferred to the new acquirer under the current conditions, and no disadvantage or change will occur to policyholders."
The financial authorities, after four failed open sales, decided to transfer the contracts held by MG Non-Life Insurance to another non-life insurer without changing terms to minimize harm to policyholders. However, due to union opposition and mediation by political circles, the course was changed to push again for a sale of MG Non-Life Insurance by the end of 2026. The financial authorities plan to complete the originally planned contract transfer if the sale fails again.