Deposit insurer signs share purchase deal to sell Yes Byeol Insurance to OK Financial
In short
The Korea Deposit Insurance Corporation said on October 7 that it signed a stock purchase agreement with OK Next Co., an affiliate of OK Financial Group, for Yes Byeol Non-Life Insurance — about three months after OK Next was named preferred bidder. Closing still depends on Financial Services Commission approval of the major shareholder change and other regulatory steps. Yes Byeol is the bridge insurer holding all of MG Non-Life Insurance's contracts and assets.
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The Korea Deposit Insurance Corporation said it signed a stock purchase agreement with OK Next Co., an affiliate of OK Financial Group, for Yes Byeol Non-Life Insurance, several outlets reported on October 7. Yonhap and Chosun Ilbo said the contract came about three months after OK Financial Group was selected as preferred bidder for the public sale in July; Maeil Business dated that selection to July 10. [ 2 , 3 , 5 , 6 ]
Yes Byeol Non-Life Insurance is a bridge insurer that the deposit insurer established with full funding to take over and wind down the assets and liabilities of MG Non-Life Insurance, which had been designated an insolvent financial institution. Maeil Business reported that Yes Byeol took over MG Non-Life's insurance contracts and assets in September last year and handles contract maintenance and insurance payouts; Yonhap said all of MG Non-Life's contracts and assets have been transferred to it. [ 3 , 5 ]
Under the contract, OK Next will seek Financial Services Commission approval for the major shareholder change and file a merger notification with the Fair Trade Commission, according to Asia Economy, Yonhap, Maeil Business and Chosun Ilbo. Once those procedures are finished, the deposit insurer will execute its funding support and trade shares with OK Next, closing the public sale process, the outlets reported. Yonhap said the deposit insurer will provide more than 1 trillion won and that OK Financial Group is expected to expand capital through an additional rights issue. [ 2 , 3 , 5 , 6 ]
MG Non-Life Insurance had several sale attempts since 2022 that did not go through. Maeil Business reported that Meritz Fire & Marine was chosen as preferred bidder last year but the sale collapsed after union opposition over the question of employment succession. [ 5 ]
Maeil Business said the acquisition would add insurance to a business structure centred on OK Financial Group's savings bank and capital unit, allowing it to diversify revenue through premium income and asset management, and asked whether the group can repeat its turnaround of OK Savings Bank at the insurer. It also listed remaining hurdles: the group's major shareholder eligibility screening is not fully resolved, Financial Services Commission approval is the final gate, and capital expansion, solvency ratio (K-ICS) management and rebuilding the sales base lie ahead. [ 5 ]
The deposit insurer said it will continue to do its best so that the process can be concluded promptly for the protection of insurance contract holders and the normalisation of Yes Byeol Non-Life Insurance. [ 2 , 3 , 5 ]
Why it matters
If the regulatory steps are cleared, OK Financial Group would add insurance to a business centred on a savings bank and a capital unit, a first step toward what Maeil Business described as a comprehensive financial group. Completion would also end the long-running disposal process for MG Non-Life Insurance's contracts and assets, which the deposit insurer has kept in a state-funded bridge company to protect policyholders. The deal is not final: approval of the buyer as a major shareholder, and post-acquisition capital and solvency management, remain open.
Key facts
- The Korea Deposit Insurance Corporation said it signed a stock purchase agreement with OK Next Co., part of OK Financial Group, for Yes Byeol Non-Life Insurance on October 7. [ 1 , 2 , 3 , 5 , 6 ]
- OK Next was selected as preferred bidder for the sale in July, about three months before the contract, according to Yonhap and Maeil Business, which dated the selection to July 10. [ 3 , 5 , 6 ]
- Yes Byeol Non-Life Insurance is a bridge insurer set up and wholly funded by the deposit insurer, holding all of MG Non-Life Insurance's insurance contracts and assets. [ 3 , 5 , 6 ]
- The next steps are Financial Services Commission approval of the major shareholder change and a Korea Fair Trade Commission merger filing. [ 2 , 3 , 5 , 6 ]
- After the procedures are completed, the deposit insurer will execute funding support and trade shares with OK Next, ending the public sale process. [ 2 , 3 , 5 ]
- Yonhap reported the deposit insurer will provide more than 1 trillion won and that OK Financial Group is expected to expand capital through an additional rights issue. [ 3 ]
- MG Non-Life Insurance had several failed sale attempts since 2022; last year Meritz Fire & Marine was chosen as preferred bidder but the sale collapsed after union opposition over employment succession, Maeil Business reported. [ 5 ]
- Maeil Business reported that OK Financial's major shareholder eligibility review is not fully resolved and that capital expansion, solvency ratio management and rebuilding the sales base remain tasks after the acquisition. [ 5 ]
Confirmed by several sources
- The deposit insurer and OK Financial Group signed a share purchase agreement for Yes Byeol Non-Life Insurance. [ 1 , 2 , 3 , 5 , 6 ]
- Yes Byeol Non-Life Insurance is the bridge insurer of MG Non-Life Insurance, whose contracts and assets have been transferred to it. [ 3 , 5 , 6 ]
- Financial Services Commission approval of the major shareholder change is required before the sale is finalised. [ 2 , 3 , 5 , 6 ]
- The deposit insurer said it will do its best to conclude the process quickly for the protection of insurance contract holders and the normalisation of Yes Byeol Non-Life Insurance. [ 2 , 3 , 5 ]
Still unclear
- The size of the deposit insurer's funding support was reported only by Yonhap, which said more than 1 trillion won and described OK Financial Group's additional rights issue as expected. Single-outlet figures that the other documents do not state; the amounts and any deal price are not confirmed across outlets.
- Whether the sale will close. All documents say completion depends on regulatory approvals, and Maeil Business says the major shareholder eligibility review is not fully resolved.
- The exact date of OK Next's selection as preferred bidder. Yonhap and Chosun Ilbo say July, while Maeil Business specifies July 10.
What local media are saying
Timeline, local time
- Newsis publishes a report titled “Deposit insurer signs ‘Yes Byeol Insurance share purchase agreement’ with OK Financial.” [ 1 ]
- Asia Economy reports the deposit insurer signed the main contract with OK Financial Group for the sale of Yes Byeol Non-Life Insurance. [ 2 ]
- Yonhap reports the deposit insurer signed the share purchase agreement with OK Next Co. (OK Financial Group). [ 3 ]
- Maeil Business reports OK Financial Group signed the main contract to acquire Yes Byeol Non-Life Insurance. [ 5 ]