OK Financial Group named preferred bidder for MG Non-Life Insurance sale

Korea Deposit Insurance Corp. said Friday it has selected OK Next Co., a unit of OK Financial Group, as the preferred bidder for the sale of Yebyeol Non-Life Insurance, the bridge insurer established from MG Non-Life Insurance.

The state deposit insurer received final acquisition proposals from four companies in a re-announced public tender for Yebyeol Non-Life Insurance, which closed June 30.

After conducting preliminary reviews of statutory acquisition requirements, evaluating the amount of financial support requested and assessing each bidder's ability to fulfill contractual obligations, the corporation selected OK Financial Group as the preferred bidder.

The corporation will grant the preferred bidder an exclusive negotiation period and proceed with follow-up steps, including sale negotiations and the signing of a share purchase agreement.

"We will continue to do our best to ensure the resolution process is concluded as swiftly as possible, in order to protect policyholders and normalize Yebyeol Non-Life Insurance," a corporation official said.

If negotiations proceed smoothly, a definitive agreement is expected to be signed in the third quarter, followed by approval of the financial support plan, approval of the change in major shareholder and a share transfer to complete the acquisition. However, significant hurdles remain, including cooperation from the labor union and regulatory approval from financial authorities.

The corporation has pursued a public sale of MG Non-Life Insurance multiple times since the insurer was designated an insolvent financial institution in 2022, but each attempt fell through. In 2024, a deal appeared close when a private contract was signed with Meritz Fire & Marine Insurance, but MG Non-Life Insurance's labor union mounted strong opposition over employment succession, and the sale ultimately failed to close.