Forecast "Application for Prohibition of Business Interference Against MG Sonbo Union"

"Obstruction of On-site Due Diligence by Meritz Fire & Marine Insurance"

The Korea Deposit Insurance Corporation (KDIC) announced on the 12th that it has filed a preliminary injunction to prohibit obstruction of business against the MG Insurance labor union, accusing them of interfering with the on-site due diligence related to the sale.

According to KDIC, the MG Insurance labor union raised objections regarding sensitive management information and personal data when Meritz Fire & Marine Insurance, selected as the preferred bidder for the sale of MG Insurance on the 9th of last month, attempted on-site due diligence. Based on legal review, KDIC devised a due diligence plan to address the union's objections and attempted the due diligence again on the 7th.

KDIC stated, "Nevertheless, the labor union has refused to accept the due diligence plan and continues to raise similar issues, thereby obstructing the due diligence by the preferred bidder (Meritz Fire & Marine Insurance)." They added, "The delay in due diligence is causing deterioration in corporate value, potentially expanding fund losses, and increasing anxiety among 1.24 million insurance policyholders."

They further said, "Apart from the injunction application, we have kept communication channels open with the MG Insurance labor union to proceed with the sale and will continue to promote due diligence by the preferred bidder. Since cooperating with the due diligence and completing the sale will also benefit the MG Insurance labor union and employees, we plan to maintain continuous communication with the union to ensure smooth progress of the due diligence."