Korea Deposit Insurance Corporation (KDIC) sold a 4.3% stake in SGI Seoul Guarantee Insurance on Monday, recovering 161 billion won ($112 million) in public funds.
KDIC offloaded 3 million shares, or 4.3% of Seoul Guarantee Insurance, through a pre-market block deal. The sale brought total recoveries from public funds injected into Seoul Guarantee Insurance to 5.32 trillion won out of the original 10.25 trillion won in principal, raising the cumulative recovery rate from 50.3% to 51.9%.
KDIC selected a lead manager last year to handle the sale of its Seoul Guarantee Insurance holdings and has set a target of liquidating its 33.85% stake within this year. "We plan to hold discussions at the Public Fund Oversight Committee in a way that minimizes the impact on share prices, taking market conditions into account," a KDIC official said.
KDIC is also pushing to sell its entire 10% stake in Hanwha Life Insurance (088350.KS) within the year, ahead of the scheduled dissolution of the Deposit Insurance Fund Bond Redemption Fund at the end of next year. (See pages 1 and 9 of the March 25 edition.)
