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| Kyobo Life Insurance headquarters in central Seoul / Courtesy of Kyobo Life Insurance |
By Anna J. Park
Both Kyobo Life Insurance and Kakao Pay Insurance denied a market rumor that they are in talks. Media reports said earlier this week that Kyobo Life has begun due diligence into Kakao Pay Insurance to acquire a 51 percent stake in the digital non-life insurance firm for around 60 billion won to 70 billion won ($45 million to $53 million).
According to both firms on Tuesday, nothing specific has been going on regarding the alleged deal. Kyobo Life Insurance, the country's third-largest life insurer, acknowledged that it aims to make a foray into non-life insurance markets in the future, but it denied the ongoing acquisition deal of Kakao Pay Insurance, saying that every option is fully open.
"It is true that Kyobo Life Insurance is mulling over expansion beyond the life insurance market. Yet, as of now, nothing has been specifically determined as to which non-life insurance firms could be options for acquisition. Moreover, it is not true at all that due diligence is underway," an official from Kyobo Life told The Korea Times, Tuesday.
Kakao Pay Insurance released an electric disclosure earlier in the day, stating: "Kakao Pay is currently considering various options for the further growth of Kakao Pay Insurance, but nothing has been specifically decided as of now."
Kakao Pay Insurance was established in September 2021 with a joint capital injection of 100 billion won from Kakao Pay and Kakao. The mobile payment subsidiary of Kakao accounted for 60 percent of the capital, while Kakao paid the other 40 percent. The non-life digital insurance firm officially launched its service in April last year, after earning an insurance license from the financial authorities.
Kyobo Life had previously entered the non-life insurance market in 2001, when it acquired a car insurance firm. But it sold a portion of the stake in 2007, and then sold the rest in 2009. Kyobo Life's possible consideration to acquire a non-life insurance firm is seen as a move to transform itself into a financial holding company next year.
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