Latest news with #SeoulGuaranteeInsurance
Korea Herald
16-07-2025
- Business
- Korea Herald
Ransomware attack disrupts Korea's largest guarantee insurer
Seoul Guarantee Insurance, South Korea's largest provider of guarantee insurance, has been crippled by a ransomware attack, with its core systems offline for a third straight day. The incident began early Monday, when SGI reported an 'abnormal symptom' in its database system. By Tuesday afternoon, a joint investigation by the Financial Supervisory Service and the Financial Security Institute confirmed it was caused by a ransomware breach. As a pivotal player in Korea's guarantee insurance industry, SGI's disruption is generating widespread confusion and inconvenience. The insurer provides guarantees for both individuals and corporations, with a guarantee balance of 478 trillion won ($344.4 billion) as of end-2024. The impact is particularly severe in the housing market, where many rely on guarantee insurance for the 'jeonse' rental system, where renters pay a large, refundable deposit in exchange for no monthly rent. SGI is one of the leading providers in this space, offering the highest cap on jeonse loan guarantees at 500 million won, compared to 200 million to 400 million won from other institutions. While some services have been restored through cooperation with financial institutions, SGI's main data system remains inoperative as of Wednesday morning. In urgent cases, the company has resorted to issuing handwritten guarantee certificates to minimize disruption. Starting Wednesday, the insurer is operating an emergency center to collect reports of consumer damage and support recovery. 'We vow full compensation and are planning responsible follow-up measures,' said SGI President and CEO Lee Myung-soon. This is the first full-system disruption at a Korean financial institution caused by a ransomware attack and a second such case involving a Korean company this year. In June, major online bookstore Yes24 experienced a five-day outage and an estimated 10 billion won in lost sales due to a similar breach.
Korea Herald
16-03-2025
- Business
- Korea Herald
Seoul Guarantee Insurance marks strong Kospi debut despite market concerns
Insurer concludes first trading day with a 23% gain over debut price Seoul Guarantee Insurance, South Korea's leading guarantee insurer, marked a strong debut on the local stock market Friday, defying concerns over a market slowdown and potential overvaluation. According to the Korea Exchange, SGI closed its first trading day at 32,000 won ($22) per share, a 23 percent gain from its offering price of 26,000 won. The stock opened with a 7.88 percent gain and briefly reached an intraday high of 32,150 won. The debut rally surprised many, as market sentiment had been largely subdued ahead of the offering. The price was set at the lower end of its target range, following disappointing demand forecasts from institutional investors and lackluster results during the actual public subscription. Concerns over weak investment sentiment, coupled with the lack of new shares issued, were expected to deter investor participation in the IPO. Issues of overvaluation also persisted, despite the company reducing its size from over 3 trillion won from its initial target during its first IPO attempt in 2023. However, SGI's emphasis on shareholder returns appears to have resonated with investors. The company positioned itself as a dividend stock, targeting long-term investors with a three-year plan to distribute 2 trillion won annually in dividends. The insurer also confirmed a 2024 year-end dividend of the same amount, offering a compelling incentive for investors, as those holding shares through April will qualify for the payout, which is estimated to be around 11 percent of the offering price. SGI, the only comprehensive guarantee insurance provider in Korea, now boasts a market capitalization of 2.23 trillion won, ranking 144th on the Kospi and fifth among insurance stocks. Meanwhile, SGI's listing primarily aimed to facilitate the exit of its largest shareholder, the Korea Deposit Insurance Corporation, which has left around 5 trillion won in public funds to be recovered from its investment in the insurer. All publicly offered SGI shares came from KDIC's stake, with the corporation estimated to have recouped 181.5 billion won through the IPO. KDIC now holds approximately 83.85 percent stake in SGI.
Korea Herald
19-02-2025
- Business
- Korea Herald
SGI targets W2tr Kospi debut in March
South Korea's top guarantee insurer shows confidence in its second shot at market debut Seoul Guarantee Insurance is set to list on South Korea's benchmark Kospi next month, pitching itself as a stable dividend play to long-term investors. 'Through this listing, we aim to strengthen our position as the sole comprehensive guarantee insurer in the country and establish ourselves as a leading dividend stock with a more proactive shareholder return policy in partnership with market investors,' SGI President and CEO Lee Myung-soon said during a press meeting in Seoul on Wednesday. Founded in 1969 as Korea Fidelity & Surety, SGI maintains a dominant position in the local market, offering a broad range of guarantee and surety products for both corporate and individual clients. It also has a presence overseas, with a branch in Vietnam and an office in Indonesia, key locations where domestic companies are conducting business. For its upcoming IPO, SGI has set a target price range of 26,000 won to 31,800 won ($18 to $22) per share, valuing the company at up to 2.22 trillion won. The valuation benchmarks major nonlife insurers, including Samsung Fire & Marine and Hyundai Marine & Fire. This move marks SGI's second attempt at an IPO after shelving its initial bid last year, when it sought a valuation exceeding 3 trillion won with a price range of 39,500 won to 51,800 won per share. A key driver for the listing is the planned exit of Korea Deposit Insurance Corp., which owns 93.85 percent of SGI and has about 5.6 trillion won invested in SGI that is yet to be recouped. As in its previous IPO attempt, SGI will not issue new shares, with all 6,982,160 shares on public offer coming from KDIC's holdings -- meaning the proceeds will go directly to the major shareholder. SGI is positioning itself as a reliable dividend stock, underpinned by its dominant market position. It has paid dividends for 13 consecutive years, with an average payout ratio of 53 percent -- higher than the 19 percent average of six listed Korean nonlife insurers and close to market leader Samsung Fire's 55 percent. To bolster shareholder returns, SGI unveiled a three-year value enhancement plan in January, targeting an annual shareholder payout of 2 trillion won through 2027. This equates to a dividend yield of around 10 percent at the proposed IPO price. The company plans to distribute a 2 trillion won year-end dividend for 2024 in April, ensuring IPO investors who hold shares through early April qualify for the payout. SGI is targeting institutional investors, particularly long-term funds favoring dividend stocks. Industry insiders expect a strong push toward Asian long funds, following the company's overseas roadshows with institutional investors in Singapore and Hong Kong earlier this month. A senior SGI official noted that foreign investors' responses have been significantly more positive this time, particularly after addressing concerns about overpricing and the overhang from KDIC stake. KDIC has extended its lock-up period from six months to one year. 'We have made substantial enhancements to our pricing and shareholder return policies, and KDIC's lock-up extension aims to minimize the impact of its remaining stake sale on the share price,' the official said, adding that both companies are closely coordinating to ensure its exit does not adversly affect the insurer. Starting Thursday, the company will initiate a weeklong bookbuilding process for institutional investors, with public subscription scheduled for March 5-6.
