KDIC to Proceed with Public Sale of Yebyeol General Insurance

The Korea Deposit Insurance Corporation (KDIC) announced on December 15 that it will proceed with a public sale of Yebyeol General Insurance.

From today until January 23, KDIC will conduct a preliminary bidding process for Yebyeol General Insurance. Among the prospective buyers who submit a letter of intent, those who pass the eligibility screening will be given approximately five weeks for due diligence, after which the main bidding will take place.

A KDIC official explained, "To protect policyholders and stabilize the insurance market, we have completed workforce and organizational restructuring through smooth consultations with the MG General Insurance labor union, financial authorities, and KDIC." The official added, "Asset soundness has been further improved, as the non-performing assets of MG General Insurance have not been transferred to Yebyeol General Insurance, which is subject to sale."

The sale of Yebyeol General Insurance can be conducted in either a stock sale (M&A) or a portfolio transfer (P&A), depending on the preference of the prospective acquirer. A stock sale involves acquiring all shares of the company, while a portfolio transfer entails taking over all insurance contract liabilities and quality assets of Yebyeol General Insurance.

Even after the public sale of Yebyeol General Insurance is completed, insurance contracts will be transferred to the new acquirer under the current terms, ensuring that policyholders will not experience any disadvantages or changes. A KDIC representative stated, "We will do our utmost to protect policyholders and ensure the swift normalization of Yebyeol General Insurance."