Private equity firm grabs control of Tong Yang Life

Korean conglomerate Tong Yang
Group has turned its back on the country’s life insurance market,
with the sale of its 46.5% stake in Tong Yang Life Insurance to
Korean private equity firm Vogo Fund for KRW900bn
($798m).

According to Vogo Fund, which
was established in 2005, it is the largest independent
Korea-dedicated buyout fund with “blue-chip Korean financial
institutions” as its investors.

According to Korean media
reports, Tong Yang Group’s sale of its stake in its life insurance
unit forms part of a group restructuring aimed at reducing debt in
its construction unit, Tong Yang Major.

Following an initial public offer in October 2009, Tong
Yang Life became Korea’s first listed insurer. Tong Yang Life ranks
among the top-three of Korea’s 13 domestic and nine foreign life
insurers.

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