Hana Financial Group Receives Financial Authorities' Approval for Subsidiary Acquisition of The-K Non-Life Insurance... M&A in Final Stages

Inclusion into Group Subsidiary Upon Payment of Purchase Price
Former Hana Capital Vice President Kwon Tae-gyun Appointed as New CEO

Hana Financial Group Seoul Myeongdong Building

[Asia Economy Reporter Kim Min-young] Hana Financial Group received approval from financial authorities on the 29th to incorporate The-K Non-Life Insurance as a subsidiary.

Hana Financial announced that at the Financial Services Commission's regular meeting on the same day, it acquired 70% of The-K Non-Life Insurance's shares and obtained approval to incorporate it as a subsidiary.

Earlier, on January 20, Hana Financial's board resolved to acquire The-K Non-Life Insurance and incorporate it as a subsidiary, and subsequently, on February 14, signed a stock purchase agreement with the Korea Teachers' Credit Union.

Going forward, upon payment of the purchase price (approximately 77 billion KRW for 70% stake), The-K Non-Life Insurance will be incorporated as Hana Financial's 14th subsidiary. This marks the first merger and acquisition (M&A) in eight years. The company stated that it has secured a foundation for a new leap forward as a comprehensive financial group with all business lines established.

Since last month, Hana Financial has internally formed an acquisition task force (TF) to establish new strategic directions aimed at the early business normalization and competitiveness enhancement of The-K Non-Life Insurance.

The ambition is to build a digital financial ecosystem encompassing both financial and non-financial sectors. Hana Financial plans to respond to changes in the financial market environment, such as population aging and the advent of the untact (contactless) era, by rapidly growing The-K Non-Life Insurance into a digital comprehensive non-life insurer that guarantees various aspects of everyday life easily and quickly, thereby creating diversified financial synergies with group affiliates through the provision of comprehensive financial services.

On the same day, Hana Financial appointed Kwon Tae-gyun, former Vice President of Hana Capital, as CEO of The-K Non-Life Insurance. He is leading the acquisition task force. Hana Financial explained that he is the right person to lead The-K Non-Life Insurance’s early settlement within the group and business normalization, having served as head of management support groups at both Hana Bank and Korea Exchange Bank before and after their merger, quickly integrating differing organizational cultures, and possessing a high understanding of the automobile business model as the immediate past Vice President of Hana Capital.

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