Dutch financial conglomerate ING, has agreed to dispose of its 49% stake in Korean joint venture (JV), KB Life Insurance Company (KB Life), to venture partner KB Financial Group.
A total consideration of KRW166.5bn (€115m) will be received by ING for the stake in the JV and is expected that the transaction will not have a material impact on ING Group results.
The transaction is expected to complete during the second quarter, after receiving approvals from various regulatory bodies and meeting other conditions.
The deal is part of Dutch financial firm's strategy to divest its insurance and investment management businesses across the world to shore up the required capital ahead of implementation of new capital rules and to pay back creditors.
The group, which received a €10bn package during the financial crisis of 2008, said that its commercial banking operations in South Korea will remain unaffected from the latest transaction.
The sale process of the remaining insurance and investment management businesses in Asia, including ING Life Korea and ING's funds management business in Korea, will continue as planned.
Founded in 2004, KB Life was operating as a multi-channel life insurance company in Korea, offering savings, annuities and protection products for Korean individuals and families.
