The headquarters of KDB Life Insurance in Yongsan-gu, Seoul. [KDB Life Insurance]
The headquarters of KDB Life Insurance in Yongsan-gu, Seoul. [KDB Life Insurance]

Korea Investment Holdings, Hanwha Life Insurance and Heungkuk Life Insurance submitted final bids for KDB Life Insurance, setting up a three-way contest for the Korea Development Bank subsidiary. The field is narrower than the preliminary round in June, when the life insurance industry's "Big Three" — Samsung Life Insurance, Hanwha Life Insurance and Kyobo Life — joined in an unexpectedly strong show of interest. Samsung Life and Kyobo Life both withdrew after completing due diligence.

Financial industry sources said the three companies submitted their final acquisition proposals by the 3 p.m. Friday deadline. Samsung Life, widely regarded as a leading candidate, chose not to participate, and Kyobo Life, which had joined the preliminary round, also declined to submit a proposal.

This marks Korea Development Bank's seventh attempt to sell KDB Life. Six previous efforts since 2014 have all fallen through. In 2019, private equity fund JC Partners came closest, reaching the share purchase agreement stage, but the deal collapsed after the firm failed to meet financial regulators' requirements for approval of a major shareholder change.

With three bidders in the final round, the sale now has a genuine chance of succeeding. Industry observers have cited Korea Development Bank's potential pre-sale capital injection as a key factor drawing multiple suitors to the preliminary round. The bank carried out a 500 billion won ($352 million) rights offering in KDB Life at the end of last year, lifting its stake to 99.66 percent, and is understood to be planning an additional capital increase this year. A large-scale injection, if it materializes, would reduce the financial burden on any acquirer — a factor seen as having attracted several interested parties.

Heungkuk Life stands to grow its total assets to around 40 trillion won if the acquisition goes through, which would push it into sixth or seventh place in the industry by assets. Korea Investment Holdings, which has no insurance affiliate, has consistently expressed interest in KDB Life as a way to gain a foothold in the insurance sector. Hanwha Life, recently named preferred bidder for Acuon Capital in a deal valued in the mid-1 trillion won range, is expected to weigh the two transactions together as it considers how to prioritize capital deployment.

Korea Development Bank plans to evaluate bidders on offer price, financing capacity and post-acquisition management plans, with the aim of selecting a preferred bidder as early as this month.


psj@heraldcorp.com