Conditional Establishment of Bridge Insurer for MG Non-life Insurance Resolution... Contract Transfers by Third Quarter

Financial Services Commission Holds Regular Meeting on July 9
Conditional Approval Granted for Bridge Insurer 'Yebyeol Insurance' to Resolve MG Non-life Insurance
Contract Transfers to Be Completed by Third Quarter... Sale to Proceed Simultaneously

Financial authorities will establish a bridge insurance company called Yebyeol Insurance to facilitate the resolution of MG Non-life Insurance. The bridge insurer will be responsible for maintaining and managing MG Non-life Insurance's contracts until they are transferred to five separate non-life insurance companies. Separately, the sale of MG Non-life Insurance will also be pursued simultaneously.

On July 9, the Financial Services Commission announced that it had approved a conditional insurance business license for Yebyeol Insurance, the bridge insurer for the resolution of MG Non-life Insurance, at its regular meeting. Yebyeol Insurance will be established with 100% investment from the Korea Deposit Insurance Corporation. Its duration will be two years.

By the third quarter of this year, Yebyeol Insurance will take over all assets and liabilities, including the contracts held by MG Non-life Insurance. Afterward, due diligence will be conducted to prepare for the transfer of contracts to the five non-life insurance companies. Based on the results of the due diligence, the Korea Deposit Insurance Corporation will simultaneously prepare for the contract transfer and verify the intentions of potential acquirers to take over Yebyeol Insurance during a designated period.

If a suitable acquirer is found, the Korea Deposit Insurance Corporation will proceed with sale negotiations. If no suitable acquirer is identified, the focus will shift to transferring Yebyeol Insurance’s insurance contracts to the five non-life insurance companies. Throughout this process, procedures will be carried out efficiently to ensure that the overall resolution timeline is not delayed. Considering that the bridge insurer is a temporary entity, exceptions have been granted for certain licensing requirements, such as maintaining the capital adequacy ratio (K-ICS).

An official from the Financial Services Commission stated, "All procedures will be conducted swiftly and transparently, with respect for agreement among stakeholders," adding, "During this process, we will make every effort to fully protect policyholders and ensure that they do not experience any inconvenience in using insurance services."