Hanwha Life Insurance, Heungkuk Life Insurance and Korea Investment Holdings submitted final bids to acquire KDB Life Insurance, setting up a three-way race, investment banking industry sources said Friday.

The sale of KDB Life, a subsidiary of state-run Korea Development Bank (KDB), has been ongoing since 2014, with six previous attempts to find a new owner falling through. Attention is now focused on whether the financially troubled insurer will finally find a new owner on the seventh attempt.

KDB, along with Samil PwC, the lead manager of the sale, received bids from three potential buyers after closing the final round of bidding.

Hanwha Life’s participation came as a surprise, as the insurer is already pursuing the acquisition of Acuon Capital and Acuon Savings Bank, a deal expected to require around 1 trillion won ($705 million).

The firm's decision to join the race despite the anticipated financial burden suggests that it is willing to commit additional capital to expand its financial business, though the potential strain from a sizable capital injection could pose a challenge.

For Heungkuk Life, the acquisition would offer an opportunity to move up the ranks in the domestic life insurance industry. KDB Life’s 16.6 trillion won in assets would lift Heungkuk Life’s total assets to nearly 40 trillion won, potentially moving it up to sixth place in the domestic market, behind NH NongHyup Life Insurance with 52 trillion won in assets.

For Korea Investment Holdings, the appeal lies in the long-term assets a life insurer could provide to complement its securities business.

Samsung Life and Kyobo Life, which joined the preliminary bidding, opted out after due diligence.

Samsung Life is reportedly prioritizing overseas investments over domestic expansion, while Kyobo Life is believed to face limited financial flexibility after acquiring SBI Savings Bank earlier this year.

The biggest remaining variable is how much capital KDB Life will need after the acquisition, with potential buyers likely to face a larger capital commitment than KDB estimates.

While the state-run bank expects KDB Life to require up to 500 billion won in fresh capital after the acquisition, bidders reportedly estimate that around 1 trillion won may be needed to shore up the insurer’s financial health.

KDB plans to select a preferred bidder this month and aims to sign a stock purchase agreement by the end of the year.