[2024 National Audit] Controversy Over MG Sonbo Acquisition Nominee... "We Will Follow Procedures"

Financial Services Commission Chairman Kim Byung-hwan is attending the comprehensive audit of the Financial Services Commission, Financial Supervisory Service, and others at the National Assembly's Political Affairs Committee on the 24th. Photo by Kim Hyun-min

At the National Assembly's Political Affairs Committee audit held on the 24th, the issue of MG Insurance's sale resurfaced.

Yoo Jae-hoon, President of the Korea Deposit Insurance Corporation (KDIC), stated that Meritz Fire & Marine Insurance was not designated as the preferred bidder regarding the sale of MG Insurance.

When Rep. Kim Hyun-jung of the Democratic Party of Korea asked, "A while ago, a KDIC official came to the lawmaker's office and said that Meritz Fire & Marine Insurance would be announced as the preferred bidder right after the audit. Is this true?" Yoo responded that it was not.

Rep. Kim raised suspicions of preferential treatment in the sale. She said, "I confirmed that KDIC sought legal advice with Meritz Fire & Marine Insurance in mind regarding whether a major shareholder eligibility review was necessary," adding, "This raises suspicions that it was intended to give Meritz preferential treatment." She further pointed out, "Meritz Fire & Marine Insurance is currently awaiting the results of a regulatory inspection by the Financial Supervisory Service regarding potential legal violations, and the private contract should be suspended until the inspection results are released."

In response, Kim Byung-hwan, Chairman of the Financial Services Commission, said, "We will proceed fairly according to the established procedures."

KDIC conducted three rounds of public sales for MG Insurance, all of which failed, and is now pursuing a private contract. Industry insiders believe that Meritz Fire & Marine Insurance is highly likely to become the acquirer.

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