Munich Re subsidiary Ergo Versicherungsgruppe AG will buy control of the South Korean online auto insurer by acquiring existing and new shares, Seoul-based Daum said in an e-mailed statement today. Ergo will purchase the existing stock for 41 billion won ($45 million), it said.
Munich Re follows Axa SA, Europe's second-largest insurer, in acquiring control of a South Korean car insurer. Revenue in the country's auto insurance market rose 14 percent in the April- to-June period to 2.5 trillion won, according to the General Insurance Association of Korea.
Daum, which has been selling assets unrelated to its main Internet portal and online media business, will retain 10 percent of Daum Direct, the company said. Daum, operator of South Korea's third-most visited Web site, in September sold a stake in its online tour business unit.