NH Financial Group, the country’s fourth-largest banking group by assets, on Friday signed a memorandum of understanding with DGB Financial Group to sell its 98.90 percent stake in its insurance unit Woori Aviva Life Insurance, company officials said.

DGB Financial, led by local Daegu Bank, will study the books of Woori Aviva for six weeks starting as early as mid-September, and finalize the deal by January next year, according to NH officials.

“It was a win-win strategy for all three firms. While we can lessen the burden of the merger with Woori affiliates, Woori Aviva can capitalize on DGB’s strong foothold in Gyeongsang Province. DGB will also benefit from securing a core business and job security,” a company press release said.

In April, the agriculture-backed NH Financial Group took over Woori Financial Holdings’ affiliates, including Woori Aviva and Woori Investment and Securities, to become the nation’s fourth-largest financial group, reshaping the local financial landscape.

(monicasuk@heraldcorp.com)