Kyobo Life Insurance has entered the race to acquire Yebyul General Insurance, a bridge insurer wholly funded by the Korea Deposit Insurance Corp. (KDIC) and temporarily established to wind down the troubled MG Non-Life Insurance. With Korea Investment Holdings and Heungkuk Fire & Marine Insurance also considering bids, Kyobo Life's emergence as a potential buyer raises the likelihood that the main bidding round will draw the multiple competing offers needed for a valid auction.
According to investment banking industry sources on Tuesday, Kyobo Life recently selected Samjong KPMG as its advisor and has begun accounting due diligence to evaluate an acquisition of Yebyul Insurance. Although Kyobo Life is a major life insurer, its group lacks a non-life insurance portfolio, meaning a deal could generate synergies. The company also participated in the preliminary bidding for KDB Life Insurance the previous day, signaling that it is exploring portfolio expansion on multiple fronts. Other companies currently weighing a bid for Yebyul Insurance include Korea Investment Holdings and Heungkuk Fire & Marine Insurance.
Yebyul Insurance is a bridge insurer temporarily established with funding from the KDIC. The KDIC and sale manager Samjong KPMG pursued a sale earlier this year, but only Korea Investment Holdings submitted a bid in the main round, leaving the auction without valid competition. Hana Financial Group and private equity firm JC Flowers had taken part in the preliminary bidding but dropped out before the main round.
This marks the seventh attempt to sell Yebyul Insurance. If the bidding ends with a single applicant again, the process could shift to a private contract. Samjong KPMG reissued a public notice on May 11, restarting the sale procedure. The deadline for submitting acquisition proposals is the 30th of this month, and if two or more bidders emerge to establish valid competition, a preferred bidder will be selected in mid-July. Under the State Contracts Act, at least two parties must submit proposals for a competitive main bidding round to be established.
