Hyundai Marine & Fire Insurance, one of Korea’s biggest non-life insurers, is about to sell its office building located in affluent Gangnam-gu in southern Seoul.
Other insurers like Hanwha Life and Meritz Fire & Marine Insurance are currently also in the process of selling their office buildings and other real estate located nationwide, reported The Korea Times.
The Hyundai Marine & Fire property is expected to be the most expensive building south of the river to be sold since Samsung C&T sold its Seocho-gu office building in mid-2018.
Completed in 2001, the 19-story building with a gross floor area of 34,983 sq m is estimated to cost about KRW370bn ($301m), Currently, about 10 entities have submitted bid proposals to purchase it, and a preferred bidder is likely to be selected in early June.
An official of Hyundai Marine & Fire explained that the decision to sell the building was due to a number of factors. The expected adoption of K-ICS by 2022 ? the Korean-Insurance Capital Standards announced by the Financial Supervisory Service ? is also a major part of the decision. K-ICS is slated to be implemented in Korea in conjunction with the 2023 adoption of the International Financial Accounting Standards 17 (IFRS17).
The current time is also the appropriate time to sell the property and realise profits, given a rise in price and market conditions, the company official told The Korea Times.