Korea Investment Holdings Targets KDB Life Insurance in Diversification Deal

The Korea Investment Holdings KDB Life deal could give the brokerage-led financial group its first foothold in insurance after Korea Development Bank selected it as preferred bidder for a 99.75% stake in KDB Life Insurance.

The transaction covers 116.32 million shares, although the purchase price has not been disclosed.

Korea Investment Holdings is seeking to diversify earnings beyond securities and gain access to a more stable, long-term funding source through insurance premium inflows.

Its brokerage arm, Korea Investment & Securities, generated 90.4% of group profit in the first half, when net income reached KRW1.91tr (USD1.35bn).

The group has also proposed injecting up to KRW1tr into KDB Life following completion to strengthen the insurer's capital base and support future growth.

For Korea Development Bank, a successful sale would end a prolonged divestment process after six previous transactions failed since it first sought a buyer in 2014.