MUNICH RE IN PLANS TO BUY KOREAN ONLINE MOTOR SERVICE

German reinsurer Munich Re is in discussions to buy a majority stake in online motor insurance service Daum Direct, reports Reuters , citing Korea’s leading web portal. Daum Communications Corp is reportedly considering the sale of a majority stake in Daum Direct, which has a book value of 11bn won ($12m), according to Daum Communications’ latest figures. A Daum spokesman confirmed to Reuters that talks had been held with Munich Re, but insisted that this was only one of several options. Today’s Korea Economic Daily , citing Munich Re’s Asian head Ludger Arnoldussen, said that negotiations were expected to be concluded in the near future. Daum Direct was launched in 2003 as a joint venture with LIG Non-life. The online service reported a loss of 8.2bn won for the year to March 2007. Online distribution of motor insurance in South Korea is growing, but last year made up only 4.5% of sales.