KDB mulls halting sale of KDB Life

The Korea Development Bank (KDB) is mulling over incorporating KDB Life as a subsidiary instead of pursuing another futile attempt to sell the insurer, industry sources said.

The state-run bank is in discussions with other co-investors, including the National Pension Service (NPS), Korean Re and Consus Asset Management, regarding the upcoming expiration of the private equity fund, which holds a 95.66 percent stake in KDB Life, according to the investment banking industry on Thursday.

The investors, along with the KDB, formed the private equity fund in 2010 to acquire Kumho Life, now KDB Life, during the restructuring process of Kumho Asiana Group.

A KDB official told The Korea Times Thursday that nothing has been decided about the life insurer’s fate. Incorporating the stake under the KDB’s direct ownership, once its expiration date occurs in February next year, is just one of many possible future moves.

“As the expiration date of the fund falls in February next year, the KDB is currently reviewing various possible options over the life insurer’s future. Since all investors in the fund need to agree on the matter, discussions are ongoing and nothing has been decided for now,” the official said.

Upon the liquidation of the fund, the KDB will hold an 85.7 percent stake in KDB Life, becoming the largest shareholder, followed by the NPS, which holds a 7.7 percent stake, Korean Re’s 1.8 percent stake and Consus Asset Management’s 0.5 percent stake.

Since 2014, the KDB has been attempting to sell KDB Life, but all six past attempts ended in failure. Last year, Hana Financial Group, selected as the preferred bidder, withdrew from the acquisition process after conducting due diligence.