Latest news with #KyoboLife
Korea Herald
17-04-2025
- Business
- Korea Herald
Japan's SBI to become Kyobo Life's second-largest shareholder
Japanese finance giant to raise its stake in Kyobo Life to 20% Japan's SBI Holdings is set to increase its stake in Kyobo Life Insurance to 20 percent, becoming the second-largest shareholder of the South Korean insurer. According to industry sources Thursday, the Tokyo-based financial group is seeking to acquire an additional 11 percent stake from other financial investors, following its purchase of roughly 9 percent in March from private equity firm Affinity Equity Partners. 'SBI acquired about 9.1 percent last month from Affinity and is in the process of purchasing another 11 percent from other financial investors, which would bring its total stake to around 20 percent,' an official familiar with the matter said. Affinity sold its 9.05 percent stake in a deal valued at 430 billion won ($303 million), effectively ending a protracted dispute with Kyobo Life Chair and CEO Shin Chang-jae. SBI, short for Strategic Business Innovator Group, is looking to tap Kyobo Life's digital capabilities to revamp its own insurance business, according to Nikkei's report. With the latest transactions, SBI's total investment in the Korean insurer is expected to reach 100 billion yen ($700 million). Once the deal is finalized, SBI will become Kyobo Life's second-largest shareholder after Shin and his family, who collectively hold about 36 percent. Should SBI's stake reach 20 percent, it would trigger the application of the equity method under Korean accounting rules — requiring SBI to incorporate a portion of Kyobo Life's financials into its own statements. The latest deals mark SBI's return to Kyobo Life after a 16-year hiatus. The Japanese group previously held a roughly 5 percent stake between 2007 and 2009. Despite its earlier exit, SBI has maintained close ties with the Korean insurer. In 2015, the two companies formed a consortium to launch a digital bank and, in 2022, jointly invested in Southeast Asia through a venture capital initiative. Last year, they signed an agreement to deepen collaboration in digital finance. The Japanese firm's personal connection with Chairman Shin Chang-jae is also notable. Shin's younger son, Shin Joong-hyun, previously built his career at SBI's insurance and digital banking units. He now leads the digital strategy division at Kyobo LifePlanet, the company's digital-focused subsidiary.
Korea Herald
07-03-2025
- Business
- Korea Herald
Kyobo Life ends put option dispute with Affinity, GIC
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.
Korea Herald
10-02-2025
- Business
- Korea Herald
Kyobo Life chief repurchases 5.3% stake from Affirma Capital
Kyobo Life Insurance Chair Shin Chang-jae is repurchasing a 5.33 percent stake in the insurer from Affirma Capital, raising hopes that ongoing legal battles with other financial investors could also be resolved soon. Seoul-based private equity firm Affirma agreed Friday to sell its stake in Kyobo Life for 216.2 billion won ($148.8 million), or 198,000 won per share, according to industry reports. The price is below market expectations and is close to the 185,000 won per share Affirma originally paid 18 years ago. The deal ends a yearslong dispute that began in 2018, when Affirma exercised a put option requiring Shin to buy back its stake for 397,900 won per share. The option, tied to the 2007 agreement, allowed Affirma to exit if Kyobo Life failed to go public by 2012. As Kyobo repeatedly delayed listing, Affirma invoked its right, but Shin rejected the demand, arguing the valuation was inflated. The following year, Affirma took the case to the International Chamber of Commerce for arbitration, with the two sides eventually coming to an agreement. Shin's settlement with Affirma could set a precedent for his legal battle with another group of investors led by Affinity Equity Partners. The consortium, which holds a combined 24 percent stake in Kyobo, also exercised a put option in 2018, demanding Shin buy back shares at 410,000 won per share. As with Affirma, Shin refused, and the dispute escalated to ICC arbitration. Momentum in the Affinity case picked up in December when the ICC gave its second ruling in the consortium's favor, ordering Shin to repurchase its stake after determining a fair market value through an external agency. An industry insider said Shin was able to reach a deal with Affirma faster because the case had not gone to a second ICC ruling, leaving room for negotiations. Affirma's initial 185,000 won per share investment — which was below the 200,000 won Shin deemed reasonable — also helped facilitate the agreement. Shin is undergoing an evaluation process with EY Hanyoung as the external appraiser for the Affinity case. Industry watchers expect him to seek to use the 198,000 won per share price from the Affirma deal as a reference. The minimum repurchase price for the consortium's investors will be 245,000 won per share, their 2012 investment price. Meanwhile, Shin is financing the Affirma buyback with 200 billion won from Shinhan Securities and Korea Investment & Securities, with a Kyobo Life official stressing that the financing will not affect the insurer's financial standing.
