Several insurance firms, such as ING Life and Tongyang Life, will likely be auctioned off this year.

Netherlands-based ING recently clarified its business policy to sell its insurance operations in the Asia-Pacific region, citing global economic uncertainties.

Market observers state the possibility that the Korean life insurance unit may also be included in the group’s sale target.

As ING Life holds the position of fifth or sixth in the local market, heated competition is expected if it is put up for sale.

Aside from bigger insurance firms including Samsung Life, four major financial groups, such as KB and Shinhan, reportedly are interested in taking over ING Life.

Tongyang Life is another M&A target in the industry.

Its majority shareholder Vogo Investment, a local equity fund, is considering selecting the preferred bidder after receiving letters of intent from preliminary bidders in the coming months.

Among the potential investors for Tongyang Life are Korea Life, an insurance arm of Hanwha Group and U.S.-based Prudential Life.

In November, Vogo Investment clinched a deal to buy an additional 46.5 percent stake in Tongyang Life from its parent Tongyang Group, raising the fund’s total holdings to about 60 percent.

In a bid to ease the liquidity squeeze at its cement-making subsidiary, Tongyang Group sold the stake for around 900 billion won ($795 million) but attached a condition to exercise an option to buy back 30 percent of the shares by 2015.

Other M&A targets in the industry for this year Green Insurance and ERGO Daum Direct Insurance.

By Kim Yon-se(kys@heraldcorp.com)