Taekwang Industrial Acquires 19.5% Stake in Heungkuk Fire & Marine Insurance for 49.3 Billion KRW

Shareholding increased from 19.6% to 39.1%

[Asia Economy Reporter Choi Seoyoon] Taekwang Group's textile and petrochemical affiliate Taekwang Industrial has acquired a portion of shares in Heungkuk Fire & Marine Insurance.

On the 28th, Taekwang Industrial announced through a public disclosure that it had additionally purchased 12,707,028 common shares of Heungkuk Fire & Marine Insurance from Heungkuk Life Insurance for 49.252 billion KRW.

Following the largest shareholder Heungkuk Life Insurance, Taekwang Industrial, the second-largest shareholder, increased its stake in Heungkuk Fire & Marine Insurance from the existing 19.63% to 39.13%.

Taekwang Industrial expects that by expanding its undervalued stake in Heungkuk Fire & Marine Insurance amid the recent stock market decline, it will be possible to increase the value of its shares and equity-method profits when the stock price rebounds in the future. This is also expected to have a mid- to long-term effect of enhancing shareholder value, including increased investment returns.

A Taekwang Industrial official stated, “We decided to expand our stake in Heungkuk Fire & Marine Insurance reflecting the expected future investment gains such as increased equity-method profits,” and added, “We confirmed through legal review that there are no issues regarding securities purchases of a capital support nature or unfair support under the Fair Trade Act.”