The Carlyle Group Invests US$11.1 Million in FN STARS

Seoul, Korea – Global private equity firm The Carlyle Group today announced a US$11.1 million (KRW10.4 billion) investment in FN STARS Co., Ltd., a major independent financial product distributor in Korea. As Korea’s insurance and other financial services sectors embark on product integration and channel diversification to promote customer choice and benefits, the investment from Carlyle Asia Growth Partners III, a US$680 million fund, is expected to help breed new innovation and best practices in Korea. Further financial details were not disclosed.

Carlyle’s funds will allow FN STARS to expand its scale of operations through significant recruitment and training of sophisticated financial consultants, procuring broader suites of life, non-life, investment and other financial products, and identifying potential acquisition and partnership opportunities. Drawing on its extensive know-how in financial services, Carlyle will help FN STARS nurture the best global practices and management. Financial services is one of the 10 core industries where Carlyle has accumulated deep global expertise.

Mr. Joon-Kyu Park, Co-Founder and Co-Chief Executive Officer of FN STARS, said, “Carlyle’s investment allows us to tap the huge growth potential enabled by channel diversification in the financial services sector. Independent financial product distributors will play a bigger role in delivering a greater variety of insurance and financial products and personalized services to increasingly savvy Korean consumers. We provide a low-cost yet effective distribution alternative to financial product providers. With the strong backing of Carlyle, we aim to become a formidable force that embraces the best global standards.”

Mr. Wayne Tsou, Managing Director and Head of Carlyle Asia Growth Capital Group, said, “We see channel diversification as a positive step to address new consumer needs in Korea as a result of an aging population, early retirement and increased financial planning. As seen in other mature markets, these demographic changes often lead to a reshaping of the industry, thus opening up fresh opportunities and improving quality of products and services. We are excited to participate in these growth opportunities by supporting FN STARS.”

FN STARS was co-founded by two outstanding veterans from multinational financial services companies in August 2006. Mr. Joon-Kyu Park was the former Head of Personal Financial Services at HSBC Korea, while Mr. Dae-Gyun Lee was a top salesperson at AIG Life Korea for seven consecutive years. Under the outstanding leadership of Messrs. Park and Lee, Co-CEOs, FN STARS has grown its sales force to almost 700 professional agents and 18 branches across the country.

Carlyle Asia Growth Group (CAGP), one of the region’s largest growth capital platforms, manages three funds with an aggregate capital under management of more than US$1 billion. CAGP announced in May 2007 a US$20 million investment commitment in TOPIA Education, Inc. (formerly, TOPIA Academy), one of Korea’s most diversified and largest after-school private education institutes. Following the Topia announcement, the Korean private education sector received a string of private equity investments. In addition to FN STARS and Topia, CAGP has five other Korean companies in its portfolio, including TLI, a Kosdaq-listed semiconductor design company.

CAGP seeks out outstanding entrepreneurs and local management teams that lead promising companies on a high growth trajectory and with differentiating but proven business models across industries in Korea, China, India and Japan. CAGP invests through a team of 24 native professionals in six offices -- Beijing, Hong Kong, Mumbai, Shanghai, Seoul and Tokyo. Carlyle Asia Growth Partners III, the group’s latest fund closed in June 2006, has made 21 investments in its four target markets in various sectors including consumer and retail, financial services, education, industrial and manufacturing, healthcare, energy and TMT-related businesses.

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About FN STARS Co., Ltd.
FN STARS is a leading Korean independent financial products distributor. Headquartered in Seoul, Korea, FN STARS employs almost 700 people across 18 branches located throughout Korea. FN STARS’ team of financial consultants sells a diversified portfolio of several financial products (including life and non-life insurance, investment funds and consumer finance products) to individual consumer clients. The company is developing more product offerings including wealth management consulting services. The company was co-founded in 2006 by the current co-CEOs, Mr. Joon-Kyu Park and Mr. Dae-Gyun Lee.

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