KDB Life Insurance to go under JC Partners at $506 mn

KDB Life Insurance, a unit that state lender Korea Development Bank (KDB) bailed out 10 years ago, is finally divested and privatized as it has been sold private equity fund JC Partners after three failed attempts.

JC Partners is due to sign a contract with KDB on Thursday to acquire a 92.73 percent stake in KDB Life Insurance for 200 billion won ($184 million), according to industry sources. The PEF will also agree to issue 350 billion won worth new shares for recapitalization of the life insurer.

The PEF was picked as preferred bidder six months ago.

KDB Life Insurance, formerly Kumho Life Insurance, was nationalized in 2010 after its liquidity-stressed parent Kumho Group received bailout funds. The state lender jointly with Consus Asset Management took over the insurance for about 650 billion won and has injected a total of about 1 trillion won so far.

KDB has been trying to sell off the insurance firm since 2014.

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