KB Financial Group will push to buy life insurer: head

(ATTN: REWRITES headline, lead to highlight takeover plan for life insurer; UPDATES with more detail throughout)
SEOUL, July 5 (Yonhap) -- KB Financial Group Inc., South Korea's top financial services company, plans to buy a life insurer in an effort to beef up its non-bank business, its head said Tuesday.
"Through the recent spin-off of the card business, the group's non-bank business came to account for about 20 percent. It would be best for us to purchase a life insurance company," group chairman Euh Yoon-dae said in a press conference marking his first year at KB's helm.
When Euh took office last year, he described the financial group as "a patient suffering from obesity," pushing his drive to boost profitability and efficiency. As part of efforts to find new growth engines, he is seeking to boost its non-banking business.
Euh also said the group plans to work toward buying at least one savings bank in a bid to beef up its business competitiveness.
"The group continues to move to take over troubled savings banks. If potential takeover prices are deemed appropriate, we will seek to buy more than one player," he said.
His remarks came as major banking groups, including KB Financial Group, failed to buy a package of three troubled savings banks, including Jungang Busan Savings Bank. Mid-sized securities firm Daishin Securities Co. was named a preferred bidder for the package last week.
The government is seeking to sell seven troubled savings banks, including top player Busan Savings Bank, whose operations have been suspended since January due to their deteriorated asset quality and capital strength.
"I believe that potential takeovers of savings banks would not incur risks for the group," Euh said.
He added that KB Financial Group has no interest in joining the process of buying state-run Woori Finance Holdings Co. as a strategic investor.
Three private equity funds -- Vogo Fund, MBK Partners and TStone Corp. -- submitted letters of intent on Wednesday to buy a controlling stake in Woori Finance Holdings Co. while no banking groups joined the preliminary bidding.
Meanwhile, Euh said the group's share prices will "soar" after its banking unit unloads shares in its parent group.
Kookmin Bank, South Korea's top lender, bought around a 21 percent stake in its parent, KB Financial Group, in September 2008 when the group was created. By banking law, the bank is required to unload around a 9 percent stake in the group by the end of September.
Kookmin Bank bought the stake at 57,200 won (US$53.63) per share, but as the group's shares are trading below the price, the group is gauging the appropriate timing of the share sale.
"As the group's share overhang issue wraps up, I expect that the stock prices will likely rise 30 percent," he added.
sooyeon@yna.co.kr