Shin Chang-jae, Chairman of Kyobo, "Considering Non-Insurance-Centered M&A... Actively Promoting Holding Company Conversion"

Portfolio Diversification for Financial Holding Companies
No Shareholders Oppose Holding Company Conversion Yet
"Do Not Overinterpret as Shareholder Dispute"

Shin Chang-jae, CEO and Chairman of Kyobo Life Insurance, expressed a strong commitment to transitioning into a financial holding company. He plans to actively pursue mergers and acquisitions (M&A) centered on non-insurance companies while persuading various shareholders, including financial investors (FIs), by highlighting the advantages of converting into a holding company.

On the morning of the 20th, Shin made these remarks to reporters after delivering a keynote speech at the 20th Yoon Kyung CEO Pledge Ceremony hosted by the Yoon Kyung ESG Forum at the Ahn Jung-geun Memorial Hall in Jung-gu, Seoul. Shin explained, "We are considering M&A mainly with non-insurance companies to diversify our portfolio as a financial holding company. However, we are also keeping the possibility open for non-life insurance companies."

Earlier this month, Kyobo Life Insurance began this approach by acquiring Pavilion Asset Management, a specialized alternative investment asset management firm. Shin stated, "The acquisition of Pavilion Asset Management is the first signal. We expect to build Kyobo Group’s portfolio by adding more non-insurance companies in the future."

He also expressed a proactive stance on persuading shareholders for the transition to a financial holding company. In February, Kyobo Life officially announced its plan to establish a holding company and reported the transition plan to the board of directors. At the event, Lee Cheol-joo, Vice Chairman of Affinity Equity Partners and the second-largest shareholder involved in a put option dispute, also attended as an outside director of Kyobo Life. Since then, Kyobo Life’s executives have been engaging with major shareholders to build consensus on the holding company transition.

Shin emphasized, "No one has yet expressed refusal to cooperate with the holding company transition," and added, "There are various unfounded rumors, but I hope people do not misunderstand that the transition is being pursued due to personal disputes among shareholders."

Kyobo Life plans to complete the transition to a financial holding company as early as the second half of next year. This will require procedures such as special resolutions at the board of directors and shareholders’ meetings, approval from the Financial Services Commission, and registration of the holding company establishment.

Shin Chang-jae, Chairman of Kyobo Life Insurance, is delivering the keynote speech at the Yoon Kyung ESG Forum held on the 20th at the Ahn Jung-geun Memorial Hall in Jung-gu, Seoul.

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