Shinhan's Lotte Insurance deal faces profitability, capital hurdles

Shinhan Financial Group is looking to expand its nonbank operations by acquiring a 77.04 percent stake in Lotte Insurance from private equity firm JKL Partners, with the remaining shares to be purchased after regulatory approval. The deal, valued at 693.3 billion won ($514.6 million), aims to strengthen Shinhan's foothold in non-life insurance with Lotte Insurance's 14 trillion won in assets and 3.34 million customers.

However, analysts have expressed concerns over the deal's profitability and capital requirements, as the insurer may need substantial additional funding to bolster its financial position and achieve the financial group's goal of generating at least 120 billion won in annual profit within three years.

Brief written by urgent.news from The Korea Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.