South Korea’s leading banking groups are reorganizing their business portfolios to seek new profit sources in response to the prolonged low interest rate trend that has resulted in narrower loan-deposit margins, market watchers said Tuesday.

KB Financial Group Inc. expanded its business portfolio by acquiring LIG Insurance Co., the country’s No. 5 nonlife insurer.

KB signed a deal to purchase a 19.47 percent stake in the insurer for 685 billion won ($670 million) in late June. The deal is expected to be finalized at the end of next month.

KB’s takeover of LIG Insurance, which is estimated to have 20 trillion won in assets, is anticipated to power the group to expand its asset value to over 400 trillion won. (Yonhap)