Acquisition of "50% Plus One Share" by End of 2026
"Maximizing Synergy Between Life Insurance and Savings Bank"
Kyobo Life Insurance is set to make a full-fledged entry into the savings bank sector by acquiring SBI Savings Bank. The move is part of a strategy to diversify its portfolio and transition into a stable financial holding company.
On April 28, Kyobo Life Insurance announced that its board of directors had resolved to acquire 50% plus one share of SBI Savings Bank by October 2026. The seller is SBI Holdings, the largest shareholder of SBI Savings Bank, and the acquisition price is approximately 900 billion won.
A Kyobo Life Insurance representative stated, "With the put option dispute effectively settled, we can now accelerate our transition into a financial holding company. Entering the savings bank sector is part of our push to become a holding company and diversify our business portfolio. We also plan to actively expand into non-insurance financial businesses, such as acquiring a non-life insurance company in the future."
As of last year, SBI Savings Bank was the industry leader, with total assets of 14.0289 trillion won, total equity of 1.8995 trillion won, and 1.72 million customers. It maintained stable profitability, recording net profits of 349.5 billion won in 2021 and 328.4 billion won in 2022. Net profit for 2023 was 89.1 billion won, and for 2024 it was 80.8 billion won.
The largest shareholder of SBI Savings Bank is Japan's comprehensive investment and financial group, SBI Holdings, which holds an 85.23% stake, excluding 14.77% in treasury shares. Considering its lack of experience in operating a savings bank, Kyobo Life Insurance plans to acquire its stake in phases. After receiving approval as a major shareholder from financial authorities, it will first acquire a 30% stake in the second half of this year. Then, in line with its transition to a financial holding company, it will acquire "50% plus one share" by the end of October 2026. A Kyobo Life Insurance representative explained, "While we will be able to exercise management rights from 2027, we plan to operate jointly for a considerable period. There is absolutely no reason to replace the current management team that has built SBI Savings Bank into the industry leader."
Kyobo Life Insurance plans to maximize synergy between its existing insurance business and the savings bank. It will offer savings bank services to insurance policyholders and expand customized financial solutions by linking insurance products to savings bank customers.
The company also plans to further expand customer touchpoints in the digital finance market. By combining the Kyobo Life Insurance app, which has 2.3 million users, with the SBI Savings Bank SAI DA Bank app, which has 1.4 million users, it will secure a total of 3.7 million financial customers. Through this, it aims to actively attract MZ generation (Millennial + Generation Z) customers who are less familiar with insurance products.
By combining the strengths of both companies, Kyobo Life Insurance also plans to enhance its competitiveness in customer service. It intends to use SBI Savings Bank accounts as payout accounts for insurance claims, thereby increasing the convenience of financial services. Customers rejected for loans by the insurance company will be directed to the savings bank, with plans to expand household loans by more than 1.6 trillion won. Financial synergy will also be maximized by utilizing SBI Savings Bank deposits as Kyobo Life Insurance's retirement pension investment products.
Kyobo Life Insurance and SBI Group have maintained a strategic partnership since 2007, collaborating in various financial sectors. They have built partnerships in major businesses such as the attempted acquisition of Woori Financial, discussions on establishing a third internet bank, and digital finance cooperation. In July last year, they expanded their cooperation by signing a memorandum of understanding (MOU) for collaboration in digital finance, including tokenized securities issuance. Last month, SBI Holdings acquired a 9.05% stake in Kyobo Life Insurance previously held by private equity fund Affinity, and recently decided to further increase its stake to 20% by acquiring additional shares from Kyobo Life Insurance's financial investors (FIs).
Through this transaction, the two companies plan to strengthen their strategic partnership, moving beyond a simple financial investment relationship to jointly respond to changes in the future financial market. An SBI Group representative said, "Based on our long-standing partnership with Kyobo Life Insurance, we plan to further strengthen our strategic cooperation in various financial sectors going forward."
A Kyobo Life Insurance representative stated, "In the era of digital finance, providing customized services to customers is more important than ever. Through our partnership with SBI Savings Bank, we will break down the boundaries between savings banks and insurance, and provide customers with even more differentiated financial services."
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