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Photo: Korea Deposit Insurance Corporation (KDIC) |
[Alpha Biz= Paul Lee] Seoul, July 11, 2025 — The Korea Deposit Insurance Corporation (KDIC) has initiated the process to sell a 33.85% stake in Seoul Guarantee Insurance Company (SGI)—a deal estimated to be worth approximately KRW 1 trillion.
According to a public tender notice posted on Korea’s national e-procurement system Nara Jangteo, KDIC is seeking to appoint two lead managers—one domestic and one international investment firm—to oversee the sale of 23,635,946 shares, which represents the maximum amount it is permitted to offload by the end of 2027.
The final number of shares to be sold may be adjusted based on market conditions, government policy, and the decision of the Public Fund Oversight Committee, KDIC noted.
The sale is expected to take place after March 2026, following the expiration of SGI’s one-year lock-up period, which began when the company was listed on the KOSPI on March 14, 2025. KDIC stated that the exact timing and method of the sale will be determined in consultation with the Public Fund Oversight Committee, taking into account investor sentiment and policy direction.
If the sale proceeds as planned, KDIC’s ownership in SGI would decrease from 83.85% to 50%, enabling a potential capital recovery of around KRW 1 trillion. As of July 11, SGI’s market capitalization stood at approximately KRW 3.17 trillion.
Eligible bidders must be financial investment firms with equity sale experience within the past three years. The selected firms will be responsible for designing and executing the sale strategy.
SGI was formed in 1998 through the merger of Korea Guarantee Insurance and Daehan Guarantee Insurance, both of which were on the brink of collapse during the Asian financial crisis. From 1999 to 2001, the Korean government injected KRW 10.25 trillion in public funds into SGI via KDIC. During SGI’s IPO in March, KDIC recovered KRW 181.5 billion.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
