Kyobo Life's 'Put Option' Injunction Lawsuit Victory... IPO Momentum for Next Year

Dismissal of Injunction Filed by Affinity and Release of Provisional Seizure

[Asia Economy Reporter Oh Hyung-gil] The financial investor (FI) Affinity Consortium's injunction request to enforce the contract against Shin Chang-jae, Chairman of Kyobo Life Insurance, related to the put option (stock purchase claim) dispute, has been dismissed. The provisional seizure on Chairman Shin's residence, salary, dividends, and Kyobo Life Insurance shares has also been canceled.

On the 27th, the Seoul Northern District Court dismissed the injunction request filed by the Affinity Consortium to enforce the contract and canceled all provisional seizures against Chairman Shin Chang-jae of Kyobo Life Insurance.

In September, the arbitration panel under the International Chamber of Commerce (ICC) ruled that Chairman Shin has no obligation to purchase put option shares at the price of 409,000 KRW per share proposed by the Affinity Consortium or at any price, nor to pay interest.

Accordingly, the Affinity Consortium filed an injunction request in October against Chairman Shin, stating that if he does not appoint an appraisal institution, they can seek remedies under Korean law, including claiming contract performance from Chairman Shin.

Additionally, the Affinity Consortium had provisionally seized Chairman Shin's residence, salary, dividends, and Kyobo Life Insurance shares, citing the possibility that Chairman Shin's assets could be depleted if he purchases the 24% stake held by the consortium at 409,912 KRW per share.

This ruling is seen as another complete victory for Chairman Shin and the law firm Kwangjang, following the international arbitration against the Affinity Consortium and Kim & Chang.

Three accountants from Anjin Accounting Corporation, who valued Kyobo Life Insurance's share price at 409,912 KRW per share, and two executives from the Affinity Consortium have been indicted for violating the Certified Public Accountant Act. The first trial is currently underway at the Seoul Central District Court. On the 20th, the prosecution requested sentences ranging from one year to one year and six months imprisonment and approximately 130 million KRW in fines for the main defendants. The verdict is scheduled for February 10 next year.

Furthermore, the initial public offering (IPO) of Kyobo Life Insurance, which had been uncertain due to the injunction and provisional seizure lawsuits, is expected to gain momentum. Kyobo Life Insurance applied for preliminary review for listing with the Korea Exchange this month and aims to be listed in the first half of next year.

A Kyobo Life Insurance official stated, "Following the victory in the arbitration lawsuit, winning decisively in the injunction lawsuit has resolved uncertainties in the put option dispute," adding, "The lifting of the provisional seizure will also give momentum to the IPO."

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