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ING to sell ING Life Korea to MBK Partner for 1.24 billion euros

Staff writer |
ING has reached an agreement to sell ING Life Korea, its wholly owned life insurance business in South Korea, to MBK Partners for approximately KRW 1.84 trillion (1.24 billion euros).

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Under the terms of the agreement, ING will hold an indirect stake of approximately 10% in ING Life Korea for an amount of KRW 120 billion (EUR 80 million at current exchange rates). ING has also reached a licensing agreement that will allow ING Life Korea to continue to operate under the ING brand for a maximum period of five years.

In addition, over the course of one year, ING will continue to provide technical support and advice to ING Life Korea.

"This transaction is a major step in the divestment of our Asian insurance and investment management activities. Together with the scheduled payment of the next tranche of the core Tier 1 securities to the Dutch State in November 2013, this will bring us further into the end phase of the restructuring of our company," said Jan Hommen, CEO of ING Group.

Since 2009, ING has sold its insurance and investment management operations in Canada, Australia & New Zealand and Latin America, and a large portion of its insurance and investment management activities in Asia.

In May 2013, ING's U.S.-based retirement, investment and insurance business was successfully listed on the New York Stock Exchange, reducing ING's stake to approximately 71%. ING has accelerated preparations for the IPO of its European insurance and investment management businesses to be ready to go to market in 2014.

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