MBK Partners bailed out ING Groep by agreeing to purchase its South Korean insurance unit to the tune of USD1.65 billion. As part of the agreement, the Dutch insurance company would allow MBK to use the ING brand for a maximum of five years and would retain a 10% stake in the South Korean unit.
Since 2008, ING has stepped away from its banking and insurance model, announcing a significant number of job cuts and other cost-cutting measures. In the process, the company raised an approximate total of USD31 billion from divesting insurance, investment management, and other assets in order to pay back state aid.
The sale agreement was announced Monday. It would leave ING with the Japan insurance unit, which it also plans to sell. This planned sale of the Japan was also part of the company's agreement with European regulators. The agreement required ING to offload of over 50% of its Asian units by end of the year.
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