Seoul Speeds Sale Plan For Ailing Life Insurer

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Seoul Speeds Sale Plan For Ailing Life Insurer

The government will sell off Korea Life Insurance Co. as soon as a buyer steps forward, even if it is before the normalization of the troubled insurer's operations.

"We hope that we can find a new owner for Korea Life Insurance by the end of the year," Deputy Prime Minister Jin Nyum told reporters Thursday after a breakfast meeting with the 21st Century Top Management Club at The Westin Chosun Hotel. "We have come to the conclusion that it is best to sell off the company at the same time it is listed on the stock market." Mr. Jin said that final plans on the matter will be released by the end of the week.

A finance ministry official pointed out that the government's original plans called for the sale of the state-owned insurance firm only after it was normalized through infusions of additional public funds. But with foreign investors showing interest in buying the company, Seoul decided to sell the insurer as soon as a reasonable offer is made. Interested parties include the Hanhwa Group, American International Group and Metropolitan Life Insurance.

"The pumping of the additional 1.5 trillion won ($1.2 billion) of public funds for Korea Life will be adjusted according to the details of the sell-off schedule," the official said. The insurer has already received 2.5 trillion won of government money, but needs more to restore normal operations.

The decision whether to merge Samshin Allstate, Hyundai and Hanil life insurance firms with Korea Life has not yet been made, the official said.



by Song Sang-hoon

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