Kyobo Life Insurance to Acquire SBI Savings Bank
Kyobo Life Insurance is seeking to acquire SBI Savings Bank to expand its business area and convert into a financial holding company. This move aligns with the interests of Japan’s SBI Group, which holds a 100% stake in SBI Savings Bank and has been looking to recover its investment since 2013.
The acquisition is expected to be approved at Kyobo Life Insurance’s board meeting next week. Following this, the Financial Services Commission will review the eligibility of major shareholders, a process that typically takes about two months. The contract includes a preferential purchase right allowing Kyobo Life Insurance to acquire additional stakes in SBI Savings Bank.
However, securing management rights through additional stake acquisitions is anticipated to take several years. A financial industry official predicted that Kyobo Life Insurance would maintain the current system for a while, given its lack of experience in managing savings banks.
Kyobo Life Insurance stated that it has been exploring various targets to transform into a financial holding company and is considering entering the savings bank business, but has not yet confirmed the acquisition of SBI Savings Bank.
The acquisition is a result of the resolution of the put option dispute between Kyobo Life Insurance Chairman Shin Chang-jae and financial investors (FIs). During this dispute, SBI Group increased its share among FIs to about 20 percent and supported Kyobo Life Insurance.
SBI Group, which became independent from SoftBank Group’s investment division, renamed Hyundai Swiss Savings Bank to SBI Savings Bank after acquiring it in 2013. Since then, over 1.4 trillion won has been invested in the management process. SBI Savings Bank holds assets worth 14 trillion won as of the end of last year, ranking first in the savings bank industry.
