Kyobo Life's Long-Awaited Holding Company Establishment Expected to Proceed as Early as Second Half of Next Year

Diversification of Business Structure... Establishing Mid- to Long-Term Growth Engines

[Asia Economy Reporter Minwoo Lee] Kyobo Life Insurance is pushing forward with the establishment of a financial holding company, a goal it has pursued since the past. This strategy is interpreted as an effort to break free from the constraints of being solely an insurance company during a period of increasing uncertainty, enabling smoother investment and fundraising at the holding company level while securing mid- to long-term growth drivers.

According to industry sources on the 8th, Kyobo Life Insurance plans to report the agenda for establishing a financial holding company at the regular board meeting scheduled for the 9th.

Following this, the company will go through procedures such as resolutions by the board of directors and shareholders' meeting, and obtaining approval for the financial holding company license from the Financial Services Commission. The holding company system is expected to be launched as early as the second half of next year.

Kyobo Life Insurance has been considering transitioning to a holding company since 2005. This is the first time the company has officially announced such plans. If Kyobo Life establishes a holding company, it will be the first life insurance company to do so and the second in the insurance industry after Meritz Fire & Marine Insurance.

Through the transition to a holding company, Kyobo Life plans to diversify its business structure and create mid- to long-term growth drivers such as synergy among affiliates. In addition to already operating businesses outside of insurance, such as Kyobo Securities and Kyobo AXA Asset Management, it is expected to build a diverse financial business portfolio.

A Kyobo Life Insurance official explained the background for the move, stating, "With the management environment of the life insurance industry worsening due to demographic changes and global economic recession, we judged that the current life-centered governance structure has regulatory constraints that limit the group's ability to pursue long-term growth strategies."