Kyobo Life Insurance Acquires SBI Savings Bank... Signals Shift Toward 'Comprehensive Financial Group'

Securing a "Regional Bank-Level" Financial Portfolio on the Foundation of a Major Life Insurer

Maximizing Synergy Between Insurance and Savings Bank Businesses

"Actively Expanding Productive Finance, Including Loans for SMEs and Mid-Sized En

Kyobo Life Insurance has acquired SBI Savings Bank, the No. 1 savings bank in Korea. With this acquisition, Kyobo Life Insurance is expanding its business structure from an insurance-centered model to the banking sector, establishing a decisive opportunity to become a comprehensive financial group.

Kyobo Life Insurance Gwanghwamun Headquarters.

On March 18, Kyobo Life Insurance announced that it had received approval from the Financial Services Commission to change the largest shareholder for the acquisition of SBI Savings Bank. The company is expected to soon complete the acquisition of a "50% plus one share" stake, securing its position as the largest shareholder. A Kyobo Life Insurance representative stated, "By combining Kyobo Life Insurance's insurance expertise with the infrastructure of SBI Savings Bank, which operates on a scale similar to regional banks, we have established a differentiated financial portfolio," adding, "We will further strengthen our financial services tailored to customers' life cycles."

This transaction involves the purchase of shares held by Japan's SBI Group, with the acquisition amounting to approximately 900 billion won. Kyobo Life Insurance had previously secured an 8.5% stake in May last year and plans to acquire an additional 41.5% plus one share soon. This will bring Kyobo Life Insurance's total stake to 50% plus one share, which, based on voting rights excluding treasury shares, amounts to approximately 58.7%. Considering the management expertise and stability of SBI Savings Bank, which is the industry leader, Kyobo Life Insurance plans to retain the current CEO and existing management even after the acquisition.

With this acquisition, Kyobo Life Insurance will secure a financial portfolio comparable to that of a regional bank, in addition to its insurance-focused business. As of the end of 2024, SBI Savings Bank holds total assets of 14.0289 trillion won, total capital of 1.8995 trillion won, and serves 1.72 million customers, maintaining its position as the industry leader. SBI Savings Bank is the only savings bank with five operating regions nationwide, excluding Busan, Ulsan, and Gyeongnam, effectively enabling it to operate on a nationwide scale.

The financial authorities are currently promoting measures to allow large savings banks with assets of 20 trillion won or more to convert into regional or internet banks, while also considering limiting major shareholders' stakes to around 50%. SBI Savings Bank is regarded as a representative case that meets the requirements for such institutional conversion, in terms of asset size, business base, and governance structure.

Kyobo Life Insurance plans to focus on maximizing synergies between its existing insurance business and the savings bank business. The company aims to connect the sales networks of both entities by introducing savings bank products to insurance customers who have difficulty obtaining loans, and by offering insurance products to savings bank customers. In addition, the company intends to strengthen productive finance by expanding medium-interest loans for individual business owners and increasing support for small and medium-sized enterprises and mid-sized companies.

Digital competitiveness will also be enhanced. By combining the 2.98 million users of the Kyobo Life Insurance app with the 1.62 million users of SBI Savings Bank's "Cider Bank," the company will establish a customer base of approximately 4.6 million. This is expected to further expand contact points with Millennials & Gen Z, who are less familiar with insurance products.

A Kyobo Life Insurance representative stated, "Based on our long-standing partnership with SBI Group, we will broaden the scope of cooperation across new business areas in the future," adding, "We will deliver new value to customers through a differentiated financial portfolio."

Industry observers predict that this acquisition will likely allow Kyobo Life Insurance to surpass the annual net profit threshold of 600 billion to 700 billion won. Furthermore, as a large insurance company with strong capital and brand power joins the savings bank sector, the competitive landscape among existing savings banks is expected to be reshaped. In addition, the acquisition is likely to accelerate Kyobo Life Insurance’s transition to a financial holding company structure. By incorporating the savings bank as a subsidiary and meeting governance requirements spanning banking, insurance, and lending, Kyobo Life Insurance is considered to have firmly established the foundation for a long-term shift to a holding company system.

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