The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    PHOTOSDecisive moments of Team Korea at Asian Games

  • 3

    Will blue crabs from Italy arrive on Korean dining tables?

  • 5

    Seoul's financial assistance for egg freezing draws attention from single women

  • 7

    Korea wins gold, silver in men's golf

  • 9

    Over 30,000 protesters march for climate actions

  • 11

    KOICA pushes for $1.8 mil. project to support Nigeria's ICT education

  • 13

    Police launch belated probe into another teacher's suicide after parental harassment

  • 15

    On the brink of a government shutdown, Senate tries to approve funding but it's almost too late

  • 17

    Heavy traffic jams mostly eased on 5th day of holiday

  • 19

    Koreans win gold, silver in men's roller skating

  • 2

    Korea blank China to reach men's football semifinals

  • 4

    INTERVIEWAhn Hyo-seop wanted to share dedicated love with 'A Time Called You'

  • 6

    Korea wins 1st gold in women's team badminton in nearly 30 yrs

  • 8

    INTERVIEWROK-US alliance is win-win partnership: KUSAF chief

  • 10

    Expressway congestion partially eases up as Koreans return home following Chuseok

  • 12

    Korea's drop in exports eases in Sept. on chip sales recovery

  • 14

    Germany's government and Elon Musk spar on X over migrant rescue ships

  • 16

    M+ deputy director discusses Seoul's potential to challenge Hong Kong as Asia's art hub

  • 18

    Last-gasp deal averts US government shutdown

  • 20

    Kosovo demands Serbia withdraw troops from border

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Tue, October 3, 2023 | 06:32
Companies
Will SGI's planned IPO succeed?
Posted : 2022-08-05 15:33
Updated : 2022-08-08 13:58
Anna J. Park
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
                                                                                                 The headquarters of Seoul Guarantee Insurance (SGI) in central Seoul / Yonhap
The headquarters of Seoul Guarantee Insurance (SGI) in central Seoul / Yonhap

Gov't aims to complete retrieval of public funds injected into SGI by 2027

By Anna J. Park

As Seoul Guarantee Insurance (SGI) is set to go public within the first half of the next year, the company sent request for proposals (RFPs) to several local securities firms earlier this month to appoint main underwriters for the upcoming IPO process.

The IPO decision was made by the government on July 21, aiming to accelerate the retrieval of public money injected into the insurance company so that the government can realize its original plan of completing the retrieval process by 2027.

Altogether, 10.25 trillion won ($790 billion) was put into the company for two years from 1999 during the Asian Financial Crisis to aid the firm's massive payment for guaranteeing corporate bonds. As a result, state-run Korea Deposit Insurance Corporation (KDIC) currently possesses a 93.85 percent stake in the insurance firm.

So far, 4.34 trillion won, or 42 percent of the injected public money, has been retrieved through the insurance firm's dividends. The KDIC has been receiving about 210 billion won, on average annually, as dividends from SGI.

Given that it now only has five years to complete the retrieval of the public money, while nearly six trillion won remains uncollected, the stable annual dividend payment from SGI could not be able to meet the deadline.

Thus, the KDIC decided to take a two-track approach ― receiving annual dividends and selling portions of stakes ― to accelerate the retrieval process. According to the plan, the state-run agency plans to offer 10 percent of its SGI shares during the IPO process during the first half of 2023, while another 34 percent stake will be sold through block deals or open bidding throughout 2025 to 2026.

The KDIC is also considering the option of selling the insurance firm's management right by selling a 50-percent stake for a speedier retrieval of the public money.

The remaining question for the success of the government's public money retrieval plan is SGI's corporate valuation. Previous negotiations to sell the firm in the past all failed, because of a disagreement over the corporate valuation between the KDIC and potential buyers.

The issue of determining the appropriate corporate value of SGI would be an important issue for its IPO process. While the government has to maximize SGI's corporate value to successfully retrieve the public money, current IPO market conditions do not seem to be helping achieve that goal. Also, the government's optional plan of selling the management right might hamper the insurance firm's monopolistic status in the market, further lowering the corporate value.
Emailannajpark@koreatimes.co.kr Article ListMore articles by this reporter
 
miguel
wooribank
LG
Top 10 Stories
1[PHOTOS] Decisive moments of Team Korea at Asian Games PHOTOSDecisive moments of Team Korea at Asian Games
2Will blue crabs from Italy arrive on Korean dining tables? Will blue crabs from Italy arrive on Korean dining tables?
3[INTERVIEW] ROK-US alliance is win-win partnership: KUSAF chief INTERVIEWROK-US alliance is win-win partnership: KUSAF chief
4Over 30,000 protesters march for climate actions Over 30,000 protesters march for climate actions
5Korea makes last-ditch bid to host World Expo 2030 in Busan Korea makes last-ditch bid to host World Expo 2030 in Busan
6[INTERVIEW] It is premature to revise ROK-US mutual defense treaty: veterans' group head INTERVIEWIt is premature to revise ROK-US mutual defense treaty: veterans' group head
7LA-based photographer captures Koreatown unfazed by pandemic LA-based photographer captures Koreatown unfazed by pandemic
8Consumers to face higher prices for daily necessities after Chuseok Consumers to face higher prices for daily necessities after Chuseok
9Samsung chief visits Middle East to explore new businesses Samsung chief visits Middle East to explore new businesses
10Internet-only banks outperform legacy lenders in labor productivity Internet-only banks outperform legacy lenders in labor productivity
Top 5 Entertainment News
1[INTERVIEW] Ahn Hyo-seop wanted to share dedicated love with 'A Time Called You'INTERVIEWAhn Hyo-seop wanted to share dedicated love with 'A Time Called You'
2'Dr. Cheon and Lost Talisman' tops Chuseok holiday box office 'Dr. Cheon and Lost Talisman' tops Chuseok holiday box office
3M+ deputy director discusses Seoul's potential to challenge Hong Kong as Asia's art hub M+ deputy director discusses Seoul's potential to challenge Hong Kong as Asia's art hub
4[INTERVIEW] 'Coexistence of different art hubs across Asia is necessary': Art Week Tokyo Director INTERVIEW'Coexistence of different art hubs across Asia is necessary': Art Week Tokyo Director
5Trailblazing nonagenarian artist honored for redefining Korean fiber art Trailblazing nonagenarian artist honored for redefining Korean fiber art
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group