The-K Insurance Faces Employment Stability Controversy... A Final Variable in the Sale Process

Possibility of Union's All-Out Struggle Following Acquirer 'Hana Financial' Moves
Cha Seong-su, Chairman of the Teachers' Credit Union, Announces Election Defeat Campaign

[Asia Economy Reporter Oh Hyung-gil] The Korea Teachers' Credit Union is nearing the final stages of selling The-K Non-Life Insurance to Hana Financial Group, but employment security issues have emerged as a variable.

Regarding workforce restructuring due to the merger and acquisition (M&A), The-K Non-Life Insurance labor union has expressed its intention to launch an all-out struggle depending on the approach of the acquirer, Hana Financial Group, making employment stability a key issue in the final negotiations.

According to the insurance industry on the 28th, The-K Non-Life Insurance union is demanding a halt to the sale process, arguing that employment stability for employees is not guaranteed.

The union claims that although a verbal agreement on an employment stability pact was reached with the company on the 16th, the Korea Teachers' Credit Union is nullifying the agreement after Hana Financial Group, the acquirer, opposed the terms.

A union official said, "The Credit Union has not yet signed the employment stability pact, which is the seller's obligation, and has not shown even minimal trust. The company is violating the principle of good faith in labor-management negotiations."

A representative from The-K Non-Life Insurance also explained, "Reflecting on the recently sold Lotte Non-Life Insurance case, we have requested an employment stability pact for employees, but we understand that Hana Financial Group expressed reluctance in the final stages of negotiations." The union plans to launch an all-out struggle if the employment stability pact issue is not resolved or employment is not guaranteed.

The National Office and Financial Services Union is also warning of politicization regarding employment stability at The-K Non-Life Insurance. The union plans to campaign against Cha Seong-su, the former chairman of the Korea Teachers' Credit Union who is scheduled to retire on the 31st to run in the general election earlier this year.

The-K Non-Life Insurance is a company wholly owned by the Korea Teachers' Credit Union. It started as a specialized automobile insurance company and was promoted to a comprehensive non-life insurer in 2014. Since the end of last year, the Credit Union has initiated the sale of The-K Non-Life Insurance and has been negotiating with Hana Financial Group. On the 20th, Hana Financial Group's board resolved to acquire 70% of The-K Non-Life Insurance shares, bringing negotiations to the final stage. The acquisition price proposed by Hana Financial Group is known to be around 100 billion KRW, with only the Credit Union's response remaining.

Meanwhile, the Korea Teachers' Credit Union held an executive meeting on the same day to discuss the sale of The-K Non-Life Insurance. The plan is to pass a resolution on the sale at the meeting and complete the sale process after finalizing an agreement with Hana Financial Group.

This content was produced with the assistance of AI translation services.