Korea-based diversified financial conglomerate KB Financial Group has acquired 49% stake of KB Life Insurance Company (KB Life), a Korean joint venture (JV), from Amsterdam-based ING.
The Dutch financial company has received a total consideration of KRW166.5bn (€115m) for the stake in the JV and is expected that the transaction will not have a material impact on ING Group results.
Set up in 2004, KB Life was operating as a multi-channel life insurance company in Korea, providing savings, annuities and protection products for Korean individuals and families.
Originally inked on 19 April 2013, the transaction completed following approvals from various regulatory bodies and meeting other conditions.
The deal is part of ING’s strategy to offload its insurance and investment management businesses across the globe to shore up the required capital ahead of implementation of new capital rules and to pay back to creditors.
The group, which received a €10bn package during the financial crisis of 2008, said that its commercial banking operations in South Korea will remain unaffected from the latest deal.
The sale process of the remaining insurance and investment management businesses in Asia, including ING Life Korea and ING’s funds management business in Korea, will continue as planned.
ING delivers banking, investments, life insurance and retirement services, with operations mostly concentrated in China, Hong Kong, India, Japan, Malaysia, South Korea and Thailand.