Korea Development Bank is looking into infusing KDB Life Insurance Co. Ltd. with an additional 200 billion South Korean won of capital, and selling a stake in the unit on the condition the buyer participates in the capital increase, BusinessKorea reported March 28, citing sources from the local investment banking industry.

This comes a week after chairman Lee Dong-gull said the development bank will not sell KDB Life for at least two years, as deal talks have disrupted the unit's operations and affected its corporate value. The lender will divest KDB Life around 2020 when it has stabilized the unit and when the new international accounting standard for insurance contracts, or IFRS17, takes effect, the report said.

It did not however specify when the potential capital infusion and partial stake sale might take place.

Korea Development Bank expects to sell the insurer for 800 billion won to 900 billion won, but industry experts projected a sale price of about 600 billion won as it will be difficult to reorganize an asset portfolio and improve a company's financial standing in two years.

Currently, the bank holds an 85% stake in the life insurer through KDB Consus Value Ltd. with a 60.3% interest and KDB Consus Value Private Equity Fund with 24.7%.

As of March 28, US$1 was equivalent to 1,063.40 South Korean won.