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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, October 30, 2025 — Heungkuk Life Insurance is set to secure approximately KRW 840 billion (USD 610 million) in liquidity by selling its headquarters building and issuing subordinated bonds, signaling that it is preparing to join the acquisition race for AIGIS Asset Management, the nation’s largest real estate investment firm.
According to financial industry sources, ownership of Heungkuk Life’s headquarters in Jongno-gu, Seoul, will be transferred to Heungkuk Core REITs on October 31. The sale will generate KRW 719.3 billion in proceeds for the insurer.
Heungkuk Life plans to sell the property to its affiliate Heungkuk Core REITs and lease it back for the next seven years. Heungkuk Core REITs, established this year by Heungkuk REIT Management, was created to enhance liquidity and expand management profits by converting group-owned assets into a REIT structure.
In addition to the property sale, Heungkuk Life will issue KRW 200 billion in subordinated bonds next month, refinancing KRW 80 billion in existing bonds and securing an additional KRW 120 billion in fresh capital.
Combined, these two measures will generate roughly KRW 840 billion in cash — funds that are widely expected to be used in Heungkuk Life’s bid to acquire AIGIS Asset Management. The final bid for AIGIS, Korea’s leading real estate asset management company, is scheduled for November 11.
Market estimates value AIGIS at around KRW 800 billion for a 100% equity stake, meaning Heungkuk Life now has sufficient financial capacity to acquire the firm outright. If it participates as part of a consortium, its financial burden could be further reduced. Earlier this year, Taekwang Industrial, Heungkuk Life’s parent company, formed a consortium to acquire a 63% stake in Aekyung Industrial for KRW 470 billion.
Currently, Heungkuk Life and Hanwha Life are among the shortlisted bidders, along with Hillhouse Investment and CapitaLand Investment — two major overseas investment firms. Industry observers predict the deal could develop into a two-way competition between Korean insurers.
Insurance companies view the acquisition of an asset management firm as a way to strengthen long-term investment capabilities and enhance portfolio stability. Given that insurance products operate on multi-decade time horizons, insurers expect to generate steady returns through synergies with real estate and alternative investments.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
