Seoul Guarantee Insurance IPO could resurface: Report

After a failed attempt last year from weak demand, it hopes to recover part of its public funds injected during the 1998 forex crisis.

The Korea Deposit Insurance Corp. (KDIC) is reconsidering plans for an initial public offering (IPO) for Seoul Guarantee Insurance Co. (SGI) after an unsuccessful attempt last year due to weak demand, according to a Pulse News report.

KDIC, as the largest shareholder of SGI, has initiated preparations to apply for a designated auditor to restart the IPO process. 

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The IPO application is expected to be submitted either this year or next year at the latest. SGI, established in 1998, is 93.85% owned by KDIC. 

The IPO aims to recover part of the public funds injected during the 1998 foreign exchange crisis. Despite being evaluated as the largest IPO in 2023, it faced a lacklustre market response, leading to the withdrawal of the IPO application in October. 

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The decision on whether to proceed with the IPO will be made after discussions at the Public Fund Management Committee. KDIC President Yoo Jae-hoon emphasised the pursuit of public fund recovery through various means, including IPO or sale.