OK Financial Group has signed a share purchase agreement (SPA) to acquire Yebyeol Non-Life Insurance. As Yebyeol's performance worsened, OK Financial plans to bring forward the timing of capital injections and more than double staffing to push ahead with management normalisation, after additional funding needs rose by more than 110 billion won from the original plan.

OK Financial Group said on Oct. 8 it signed a share purchase agreement for Yebyeol Non-Life Insurance with Korea Deposit Insurance Corp. The deal adds non-life insurance to a business portfolio that had centred on savings banks and capital.

Yebyeol is a bridge insurer launched after taking over insurance contracts from MG Insurance, which the Financial Services Commission designated a troubled financial institution in 2022. Several sales attempts failed, before it signed an acquisition deal with OK Financial Group.

OK Financial set the protection of about 1 million policyholders and management normalisation as priority tasks. It plans to use funding support from Korea Deposit Insurance Corp and its own additional capital raising to lift key soundness indicators, including the K-ICS solvency ratio, above financial regulators' standards.

But as Yebyeol's second-quarter loss widened, the financial burden after the acquisition has become larger than initially expected. OK Financial sees it needs to inject more than 110 billion won more than planned, and is discussing bringing forward the execution timing of large investment funds that had been scheduled for later.

It will also significantly expand the organisation after the acquisition. Using the SPA signing as a trigger, OK Financial plans to form a working-level task force and begin preparations for management normalisation and business expansion. It will increase Yebyeol's workforce from about 260 to 500 to 600, and plans hiring across all areas, from the chief executive officer to staff-level roles and sales and risk management. Seniors and people with career breaks will also be included among hiring targets.

OK Financial will also continue its participation in the ongoing bid to acquire JoongAng Ilbo. Even as its financial burden increases due to additional funding for Yebyeol, it plans to take part in due diligence until the selection of a preferred bidder for JoongAng Ilbo.

An OK Financial Group official said, "We will focus our capabilities on management normalisation so that Yebyeol Non-Life Insurance can also settle in as a non-life insurer trusted in the market."