logo
Kyobo Life ends put option dispute with Affinity, GIC

Kyobo Life ends put option dispute with Affinity, GIC

Korea Herald07-03-2025

Affinity and GIC reportedly exits at 234,000 won per share, above Affirma's earlier settlement price of 198,000 won
Kyobo Life Insurance said Friday that its financial investors Affinity Equity Partners and GIC agreed to offload the stake they hold in the insurer, ending a prolonged legal dispute over a put option.
The South Korean life insurer announced that the two investors decided to sell their stakes to financial firms, including Shinhan Securities. Affinity sold its 9.05 percent stake, while GIC, or the Government of Singapore Investment Corporation, disposing its 4.5 percent stake.
Industry sources estimate the shares were sold at around 234,000 won ($162) each, below the 245,000 won per share the firms originally paid in 2012.
'We are pleased to have reached a reasonable price that the market can accept,' said Kyobo Life co-CEO and President Cho Dae-kyu. 'This allows Kyobo Life to focus more on driving its transition into a holding company and addressing future challenges.'
The settlement concludes a seven-year legal standoff that began in October 2018 when the Affinity-led consortium exercised a put option, demanding Kyobo Life Chairman and CEO Shin Chang-jae repurchase their shares at 410,000 won per share. The investors argued that Shin failed to take the company public by 2015 as promised, while Shin dismissed the claim, calling the valuation excessive.
Although the original agreement required Shin to repurchase the shares at a premium, the final settlement appears to reflect factors such as Kyobo Life's recent stock valuation — estimated at around 198,000 won — and dividends paid to investors over the past 13 years.
The consortium, formed in 2012 to acquire a 24 percent stake in Kyobo Life for 1.2 trillion won from the now-defunct Daewoo International, included a clause allowing investors to trigger a put option against Shin if Kyobo Life failed to go public within three years.
The dispute escalated to arbitration at the International Chamber of Commerce, which ruled that Shin must repurchase the consortium's shares at a fair market price. Kyobo Life has been undergoing a valuation process with external appraiser EY Hanyoung since the ICC's second ruling in December.
Market watchers had anticipated a swift resolution following the successful exit of Affirma Capital, another Kyobo Life investor involved in a similar put option dispute, last month. Shin repurchased Affirma's 5.33 percent stake at 198,000 won per share last month.
Industry insiders also suggest that the leadership of CEO Charles Min at Affinity Korea, who took office in 2023, may have accelerated stalled negotiations.
'We have reached a reasonable agreement through ongoing discussions aimed at benefiting all stakeholders,' Min said in a statement Friday, adding, 'Although our partnership is ending, we remain supportive of Kyobo Life's continued growth.'
With Affinity and GIC now exiting, the consortium is dissolved, leaving the remaining investors, IMM Private Equity and EQT Partners, to continue independent negotiations to divest their 5.23 percent stakes.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

S. Korea adds 245,000 jobs in May, yet manufacturing, construction sectors remain weak
S. Korea adds 245,000 jobs in May, yet manufacturing, construction sectors remain weak

Korea Herald

time32 minutes ago

  • Korea Herald

S. Korea adds 245,000 jobs in May, yet manufacturing, construction sectors remain weak

South Korea added more than 200,000 jobs for the first time in 13 months in May, but employment losses continued in the manufacturing and construction sectors, government data showed Wednesday. The number of employed people stood at 29.16 million last month, up 245,000 from a year earlier, according to the data compiled by Statistics Korea. It marks the first time since April 2024 that job growth exceeded the 200,000 mark and the largest on-year increase since then. May also marked the fifth consecutive month of job growth, following a brief decline in December, when the country posted a net loss of 52,000 jobs. Since then, the labor market has shown signs of steady recovery, with net gains of 135,000 jobs in January, 136,000 in February, 193,000 in March and 194,000 in April. Despite the overall growth, the manufacturing and construction sectors remained sluggish. The manufacturing sector, often considered the backbone of the South Korean economy, shed 67,000 jobs from a year earlier in May, extending its downturn to an 11th consecutive month. The construction industry also continued to struggle, losing 106,000 jobs last month to continue its decline for the 13th straight month. However, the pace of job losses in both sectors slowed compared with the previous month, the agency noted. The accommodation and food service industry also saw significant job losses, shedding 67,000 positions to mark the steepest decline since November 2021, the agency said. In contrast, several service sectors posted solid gains. Employment in public health and social welfare rose by 233,000, while the science and technology services sector added 117,000 jobs. Employment in wholesale and retail trade also increased by 18,000, marking a turnaround and the first on-year growth in 15 months. "The drop in employment in the accommodation and food service industry was largely driven by a sharp decrease in jobs at pubs and restaurants," said Gong Mi-sook, a Statistics Korea official. "The turnaround in wholesale and retail employment reflects a base effect from previous declines." May's overall job growth was largely driven by hiring among older adults. Employment among those aged 60 and older surged by 370,000 from a year earlier, while jobs for people in their 30s rose by 132,000. Notably, the number of employed people aged 60 and above surpassed 7 million for the first time, the agency said. In contrast, younger age groups saw notable declines. Jobs for people in their 20s fell by 124,000, while those in their 40s decreased by 39,000. Statistics Korea noted that these age groups are also experiencing population declines, contributing to the employment drop. The employment rate for people aged 15 and older rose 0.5 percentage point from a year earlier to 70.5 percent in May. However, the employment rate for those aged 15 to 29 stood at 46.2 percent, down 0.7 percentage point on-year. The number of economically inactive people declined by 22,000 from a year earlier to 15.7 million as of end-May. Among them, however, the number of people who reported being out of work simply to rest rose by 2.4 percent, or 56,000 people, according to the agency. (Yonhap)

YouthMeta, Thai senator partner to launch AI learning platform in Thailand
YouthMeta, Thai senator partner to launch AI learning platform in Thailand

Korea Herald

time38 minutes ago

  • Korea Herald

YouthMeta, Thai senator partner to launch AI learning platform in Thailand

South Korean crypto data aggregator YouthMeta said Tuesday it has signed a strategic memorandum of understanding with Thai Sen. Parinya Wongcherdkwan to launch an AI-powered educational platform in Thailand. The cross-border partnership aims to integrate blockchain technology into education, with a focus on youth empowerment and setting the stage for future global collaboration. The signing ceremony, held Thursday at YouthMeta's Seoul headquarters, was attended by company executives and a Thai delegation. Both parties pledged to collaborate on delivering educational content, implementing a certification-linked learning system and navigating regulatory frameworks to ensure a smooth rollout in Thailand. Long-term objectives include forming partnerships with local institutions and expanding talent development programs. YouthMeta plans to deploy its RisingX technology to provide career-oriented educational content personalized through AI. The platform will feature multilingual access, localized user interfaces and data-driven learning structures tailored to individual learners. Senator Wongcherdkwan, a prominent member of Thailand's education and foreign affairs committees, will help align the initiative with national policy goals. Known for his commitment to educational equity, his collaboration with YouthMeta is expected to serve as a model for public-private partnerships in Southeast Asia. 'This agreement marks our first step into the Thai market and a broader transformation into a socially impactful educational technology provider,' said a YouthMeta spokesperson. 'By combining AI and blockchain, we aim to bridge education and real-world career opportunities.'

Seoul shares up for 5th straight session on foreign buying
Seoul shares up for 5th straight session on foreign buying

Korea Herald

time17 hours ago

  • Korea Herald

Seoul shares up for 5th straight session on foreign buying

South Korean stocks extended their winning streak to a fifth consecutive session Tuesday on the back of foreign buying, with investors' eyes now on the ongoing trade talks between the United States and China. The local currency lost ground against the US dollar. The benchmark Korea Composite Stock Price Index added 16.08 points, or 0.56 percent, to close at 2,871.85. Trade volume was moderate at 503 million shares worth 14 trillion won ($10.3 billion), with losers outnumbering winners 461 to 429. Foreign investors and institutions net purchased 632.3 billion won and 14.2 billion won worth of local shares, respectively, while retail investors dumped 626.9 billion won. "The KOSPI once surpassed the 2,880 mark earlier in the day thanks to a fifth consecutive session of foreign purchases, but trimmed earlier gains as retail investors moved to take profit following the recent rally," Lee Kyoung-min, an analyst at Daishin Securities, said. Overnight, Wall Street was little changed as investors took to the sidelines before the conclusion of the ongoing trade negotiations between the US and China. The Dow Jones Industrial Average and the S&P 500 closed nearly flat, while the tech-heavy Nasdaq composite rose 0.31 percent. Officials from Washington and Beijing were set to hold the second, and possibly the last, day of their ongoing trade negotiations in London later Tuesday. In Seoul, defense and shipbuilding shares were the biggest gainers. Leading defense firm Hanwha Aerospace jumped 6.36 percent to 936,000 won, and its shipbuilding affiliate Hanwha Ocean soared 4.37 percent to 78,900 won. Other major shipbuilders, HD Hyundai Heavy and HD Korea Shipbuilding, advanced 2.15 percent and 4.35 percent to 427,000 won and 335,500 won, respectively. Top battery maker LG Energy Solution rose 1.23 percent to 288,500 won, and biotech firm Celltrion added 1.25 percent to 162,200 won. Market heavyweight Samsung Electronics lost 1 percent to 59,200 won, while its chipmaking rival SK hynix gained 0.66 percent to 230,500 won. Auto giant Hyundai Motor dropped 0.4 percent to 197,000 won, and its sister Kia went down 0.84 percent to 94,500 won. The local currency was quoted at 1,364.3 won against the greenback at 3:30 p.m., down 7.9 won from the previous session. (Yonhap)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store