Financial Services Commission to Gradually Sell Seoul Guarantee Insurance Shares... IPO Planned for Next Year

[Asia Economy Reporter Song Hwajeong] The government plans to gradually sell its shares in Seoul Guarantee Insurance held through the Korea Deposit Insurance Corporation (KDIC) and pursue an initial public offering (IPO) next year.

On the 21st, the Financial Services Commission announced that the Public Fund Management Committee held its 205th meeting, received the KDIC's proposal for the Seoul Guarantee Insurance share sale plan, and deliberated and approved it. Committee members agreed that considering the liquidation deadline (end of 2027) of the public funds with a fixed operation period under relevant laws, it is necessary to promote the gradual sale of Seoul Guarantee Insurance shares to recover public funds.

Accordingly, the committee decided to gradually sell 93.85% of Seoul Guarantee Insurance shares held by the KDIC. By selling minority shares, the KDIC plans to reduce its stake in Seoul Guarantee Insurance and increase investment demand, thereby laying the groundwork for smooth share sales in the future.

First, the KDIC plans to list and sell about 10% of its Seoul Guarantee Insurance shares on the securities market through an IPO (secondary share sale). The committee expects that the IPO will establish a market price (stock price), creating conditions for additional sales in the future. In the case of Woori Financial Group, management rights sales were pursued after minority share sales following an IPO.

After the share sale through the IPO, the KDIC plans to sell its remaining shares over 2 to 3 years through multiple bids or block sales.

Following the minority share sales, the committee will comprehensively consider the nature and scope of Seoul Guarantee Insurance's business and policy directions related to the guarantee insurance industry to review the sale of controlling shares (50% of shares plus one or more) in the mid to long term.

A total of 10.25 trillion KRW of public funds has been invested in Seoul Guarantee Insurance, and so far, 4.3483 trillion KRW has been recovered through preferred stock redemption and dividends. The committee stated, "Specific timing of the listing, sale volume, and offering price will be finalized after further discussions by the committee," adding, "We will continue efforts to maximize the recovery of public funds by persistently promoting the sale of assets acquired with public funds."

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