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Photo = Yonhap news |
[Alpha Biz= Kim Sangjin] Deposit Insurance Corporation Warns of Potential Liquidation of MG Insurance if Sale Fails Due to Union Opposition
The Deposit Insurance Corporation (DIC) has warned that it may liquidate MG Insurance if the sale process is ultimately blocked due to opposition from the union.
On Thursday, the DIC released a "MG Insurance Sale Explanation Report," stating that after nearly three years of efforts to sell the company, Meritz Fire & Marine Insurance remains the only valid bidder. The DIC noted that finding additional buyers is uncertain.
After MG Insurance was declared a distressed financial institution in April 2022, the DIC launched three rounds of public sales. When these efforts failed, the DIC selected Meritz Fire & Marine as the preferred bidder in December 2024 through a private contract. However, the MG Insurance union strongly opposed the sale, citing concerns that the asset and liability transfer (P&A) method does not guarantee job security for employees. The union fears that the sale could lead to large-scale layoffs.
As nearly a month has passed since Meritz Fire & Marine was selected as the preferred bidder, the due diligence process has yet to take place.
The DIC has stated that if Meritz Fire & Marine withdraws from the deal, it will consider alternatives such as a fourth round of public sale, liquidation and bankruptcy, or transferring the contract to a bridge insurance company.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
