This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:38 p.m. on Apr. 23, 2026.
The Korea Deposit Insurance Corporation (KDIC) finalized a plan to sell 29.56% of its equity in Seoul Guarantee Insurance Company by next year and began the process of selecting a legal advisor. It appears that a mid- to long-term roadmap to complete the recovery of public funds injected during the foreign exchange crisis is moving into full operation. Observers say a strategy is taking shape to maximize recovery while easing market burden through a phased equity sale.
According to the investment banking (IB) industry on the 23rd, KDIC recently sent out a request for proposal (RFP) to select a legal advisor for the sale of Seoul Guarantee Insurance Company shares. Based on the premise of selling 29.56% of the equity in Seoul Guarantee Insurance Company held by KDIC, the advisor will handle advisory work across the transaction, including designing the contract structure and preparing the information memorandum (IM). In particular, given that it left various sale methods open, such as a block sale and competitive bidding, it is interpreted as contemplating a partitioning sale rather than a one-off sale.
Considering that the advisory period is set until the end of 2027 or until the completion of the relevant equity sale, KDIC is effectively seen as aiming to complete the disposal of a meaningful level of equity by next year. This is seen as significant because it is not simply selling part of the equity but a preliminary step toward privatization.
KDIC currently holds 79.56% (55,546,746 shares) of the equity in Seoul Guarantee Insurance Company. If it sells 29.56% of this, the remaining equity will fall to about 50%. While the figure is a minority equity sale in simple numerical terms, it would result in its holdings dropping to half. It is presumed to be a move that anticipates a change in governance beyond investment recovery.
A phased disposal centered on block deals is more likely than a one-off sale. In fact, KDIC recently executed a block deal of about 3 million shares for the first time since the lock-up was lifted. This is assessed as preparatory work to minimize stock price shocks from a large volume hitting the market and to secure a stable demand base centered on institutional investors. There is a view that it is highly likely to gradually absorb the volume by conducting multiple block deals in the same manner going forward.
The market views this sale as the starting point of a "two-step exit strategy." First, by next year, it will disperse-sell roughly 30% of the equity through block deals to recover part of the public funds, and then pursue a bulk sale reflecting a control premium. Of the 10.25 trillion won in public funds injected into Seoul Guarantee Insurance Company, KDIC has so far recovered 5.3193 trillion won.