ING divesting South Korean insurance business

Sale to complete by Q4.

Netherlands-based financial conglomerate ING has signed an agreement with private equity firm MBK Partners to divest ING Life Korea, its South Korean insurance business.

The transaction is valued at US$1.66 billion. Following the completion of sale, ING will own an indirect stake of about 10% in ING Life Korea valued at US$107 million.

ING has also signed a licensing agreement that will allow ING Life Korea to continue to operate under the same brand for a maximum period of five years.

ING Group CEO Jan Hommen said the transaction is a major step in the divestment of its Asian insurance and investment management activities. Founded in 1987, ING Life Korea serves 1.3 million customers, more than 1,000 staff and nearly 6,800 tied agents.