법무법인(유한) 율촌 | Yulchon LLC

Yulchon's M&A team successfully closed a transaction on behalf of Korea Asset Management Corporation ("KAMCO") in the sale of 9.93% of its equity interest in Kyobo Life Insurance Co., Ltd. ("Kyobo life") to Ontario Teachers' Pension Plan ("OTPP"), a Canadian pension fund, for KRW468 billion. KAMCO originally held Kyobo Life’s shares in the non-performing loan disposal fund.
 

The market's initial response was pessimistic due to concerns that the transaction was unlikely to succeedbecause investors' lacked interest in a small amount of unlisted shares. Another problem was a schedule conflict with Daewoo International Corporation, the second largest shareholder of Kyobo Life, which was set to sell its shares (24%). However, the deal was successfully concluded by adjusting the sale schedule and structuring the deal to allow the concurrent execution and closing of the transaction.
 

This is the first cross-border deal where a public institution made a direct sale to a well-established foreign pension fund. KAMCO retrieved KRW468 billion of public funds and OTPP made its first direct investment in the Republic of Korea.
 

This project was supervised by Do Hyung Kim and Hyoung Young Ryu and handled by Su Yeon Lee, Dai Won Chung and Soojung Lee.