Kyobo Life Insurance Resumes IPO Push..."Heading to KOSPI in First Half of Next Year"

Preliminary Review Application for Listing Next Month

[Asia Economy Reporter Ki Ha-young]Kyobo Life Insurance is resuming its initial public offering (IPO) efforts. The goal is to list on the Korea Composite Stock Price Index (KOSPI) in the first half of next year.

Kyobo Life Insurance announced on the 17th that it will restart the IPO process, which had been stalled due to shareholder disputes. At a board meeting held the previous day, the company discussed plans to file a preliminary review application with the Korea Exchange next month and complete the IPO in the first half of next year.

Kyobo Life’s IPO push aims to diversify capital raising methods in preparation for IFRS17 (new international accounting standards) and K-ICS (new solvency regime) effective from 2023, and to lay the groundwork for a long-term transition into a financial holding company. The specific size and timing of the public offering will be finalized after comprehensively reviewing market conditions.

Kyobo Life expects that a successful IPO in the first half of next year will not only secure growth momentum through stable capital raising but also provide good opportunities for new business investments, enhancing brand value, and realizing shareholder profits.

Previously, Kyobo Life had officially announced its IPO plans in the second half of 2018. However, international arbitration between major shareholders continued for more than two and a half years, causing the IPO process to remain at a standstill. In September, the ICC arbitration panel issued a final ruling stating that Chairman Shin Chang-jae, Kyobo Life’s CEO and largest shareholder, had no obligation to purchase shares or pay damages for contract non-fulfillment. With this managerial risk resolved, the company has decided to resume its IPO efforts.

Kyobo Life meets all conditions required for the preliminary review for listing, including company size, financial and management performance, and business continuity and stability. The company is currently implementing practical systems such as electronic securities conversion, and once the provisional seizure on shares held by the Affinity Consortium is lifted, obligations such as mandatory lock-up of shares by the largest shareholder will be fulfilled, enabling Kyobo Life to meet all key listing requirements demanded by the Korea Exchange.

A Kyobo Life official said, "The Affinity Consortium and others had previously claimed they exercised put options because the IPO did not proceed and investment recovery was impossible, but now we expect them to actively cooperate with Kyobo Life’s IPO efforts."

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