hankyoreh

Munich Re AG, the world's second-biggest reinsurer, is likely to take over the online auto insurance unit of South Korea's Internet portal operator Daum Communications Corp., industry sources said Monday.

According to the sources, the German company is seeking to acquire a 65 percent stake in Daum Direct Auto Insurance Co. and is likely to sign a deal with Daum Communications and LIG Insurance Co., the biggest shareholders, this month.

Daum Communications has a 50.1 percent stake in the online auto insurance firm and LIG Insurance owns the remainder. According to the sources, a takeover price would reach about 110 billion won (US$119.9 million).

"The takeover talks have almost entered the home stretch," a source familiar with the situation said. But Daum Communications said nothing has been decided yet.

If Munich Re buys Daum Direct Auto Insurance, it would become the second foreign company to enter South Korea's auto insurance market after France's largest insurer, AXA SA.

In March, AXA purchased a 74.7 percent stake in Kyobo Auto Insurance Co. for an undisclosed amount from No. 2 life insurer Kyobo Life Insurance Co. and renamed it Kyobo Axa Auto Insurance.

Kyobo Axa has the biggest market share of 28 percent in the local online auto insurance market, followed by Daum Direct with 15.9 percent.


SEOUL, Oct. 22 (Yonhap)