Prudential Financial could sell South Korean unit

The second biggest life insurer in the US, Prudential Financial, is considering a sale of its South Korean brokerage and fund management businesses. The Newark, New Jersey-based company is considering its options for Prudential Investments & Securities Co and Prudential Asset Management Co, which are both based in Seoul, South Korea. The deal could fetch around $850 million. The company is seeking to exit its operations in the nation following increased competition as a result of a new law allowing banks and securities firms to engage in each otherÔÇÖs businesses. The company is also reportedly keen to shed some of its non-core assets. Prudential bought 80 percent of Prudential Investment for around $303 million in early 2004, acquiring the remaining 20 percent last year for an unspecified sum. It has also owned 99.8 percent of Prudential Asset Management since 2004. It is the fifteenth largest asset manager in South Korea, with around $6 billion of assets on its books. At the time of purchase, the two units made Prudential the largest foreign fund manager in South Korea. Suggested interested parties for the units include South Korean firms KB Financial Group, Lotte Group and Hanwha Group, as well as banking giant HSBC. It has been suggested that Prudential is in the early stages of talks with KB Financial, though nothing has been confirmed by either party. Prudential has said it is looking to increase its footprint in Japan and that it may use funds from sales to finance any deals. It will keep its life insurance business in Korea, Prudential Life Insurance Company of Korea.  Prudential Financial has around $580 billion of assets currently under its management. It has operations in the US, Asia, Europe and South America. Founded in 1875, the company employs just under 40,000 people worldwide. * ┬á┬á┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á *