KB chief reiterates pledge to take over LIG

KB Financial Group’s new chairman Yoon Jong-kyoo was cautious in reiterating his pledge to take over LIG Insurance on Tuesday as he sought to avoid unnecessary disputes with the Financial Services Commission.

“It is my strong wish to take over (LIG Insurance) but it is the FSC that holds the final decision and we must ask for the authority’s understanding,” Yoon said.

“The LIG Insurance case will be our top priority, and there will be no additional mergers and acquisitions for a while.”

To push ahead with his plan, Yoon said that he would meet the FSC Chairman Shin Je-yoon as soon as possible.

On Friday, he had been more outspoken about the group’s aspirations to take over the insurer.

In August, KB Financial asked for the FSC’s approval for the LIG Insurance takeover but the latter has remained passive about the issue, claiming that KB Financial has not yet sufficiently improved its management structure.

The group, having failed to wrap up the deal in time, is currently paying a delay charge to LIG Group ― 6 percent of the total deal, or 110 million won ($99,000), for every day of the delay.

The deal itself could be annulled at the end of the year if the financial company fails to get FSC approval by then.

“We will make every effort possible, including extending the contract period,” Yoon said.

By Bae Hyun-jung (tellme@heraldcorp.com)