MG Insurance Headquarters. (Photo = Yonhap News)

 

 

[Alpha Biz= Kim Jisun] Meritz Fire & Marine Insurance, the prospective new owner of MG Non-Life Insurance, has once again been blocked from conducting due diligence due to opposition from the company’s labor union. As a result, the Korea Deposit Insurance Corporation (KDIC) is expected to take legal action, including filing for an injunction to prevent obstruction.


According to the financial sector on Sunday, KDIC is reportedly reviewing a court injunction to prohibit obstruction of the due diligence process as early as the beginning of this week.


A KDIC official stated, "We are preparing to file for an injunction to prevent obstruction of the due diligence process."


If the court grants the injunction, MG Insurance’s labor union will be required to cease interference, and employees must cooperate by providing the necessary documents for the process. However, the union may challenge the decision by filing an objection to the injunction.


Since MG Insurance was designated as a financially distressed institution in April 2022, KDIC has attempted to sell the company through three open bidding processes.


Meritz Fire was selected as the preferred bidder for the acquisition on December 9, 2023, but has been unable to proceed with due diligence. The MG Insurance labor union has been blocking the process, demanding employment guarantees.

 

 

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