Acquisition

Prudential PLC
22 October 2001

For immediate release

22 October 2001

Prudential enters Korean life insurance market with acquisition of YoungPoong
                                     Life

Prudential plc ('Prudential') and Korea Zinc Company LTD announced today that
they have signed a sale and purchase agreement for Prudential to acquire 100
per cent of YoungPoong Life, a multi-distribution based Korean life insurance
company. The purchase price is W37 billion (eq. £19.7m/ US$28.7m)

Established in 1989, YoungPoong Life is based in Seoul and has branches in a
further two locations in Korea. It had total assets as at 30 September 2001 of
W107.1 billion (£57.2m/ US$82.4m). It offers a range of products including
term, savings and protection. Distribution is multi-channel and uses a mix of
general agents, exclusive agents and a telemarketing operation.

Commenting on the acquisition, Mark Tucker, Chief Executive of Prudential
Corporation Asia (PCA) said: 'Korea is a major Asian retail financial services
market and we have been actively reviewing potential entry opportunities. We
are delighted to have found in YoungPoong Life a financially and operationally
sound platform for us to build a significant business here'.

This acquisition continues Prudential's well-managed and focussed expansion
strategy in Asia. Gary Bennett, Managing Director of PCA's North Asian life
operations added: 'This acquisition of a Korean life player with excellent
growth potential is consistent with our strategy here in Asia. YoungPoong Life
enables us to leverage our regional distribution strengths and product
initiatives straight away and accelerate the next exciting stage of YoungPoong
Life's development.'

Mr Choi, Chairman of Korea Zinc (parent of YoungPoong Life) commented: 'We are
very happy to have found in Prudential a company with the financial strength,
history and global experience to grow YoungPoong Life into one of the leading
life companies in Korea.'

With the acquisition of YoungPoong Life, Prudential now has life operations in
12 countries across Asia combined with a rapidly expanding mutual fund
presence in the region. Prudential was first established in Asia in 1923 and
is currently the UK's largest life insurance company in Asia. Prudential
Singapore was awarded the title 'Asia's Life Insurance Company of the Year' at
the Asia Insurance Industry Awards 2000.



                                    -ENDS-



Enquiries to:-

Media

Howard Green          (852) 9022 5992

Geraldine Davies      (44) 207 548 3911

Steve Colton          (44) 207 548 3721



 Analysts

 Rebecca Burrows (44) 207 548 3537



Notes to Editors:-

More about Prudential

Established in London in 1848, Prudential is one of the UK's leading life
insurers with £168 billion of funds under management worldwide as at 30 June
2001. M&G, a leading UK mutual fund business and Scottish Amicable a leading
product provider for the IFA market are part of the Group. Prudential is also
the majority shareholder of egg: I, the fastest growing retail financial
services internet company in Europe. Internationally, in addition to
Prudential Asia, the Group also owns Jackson National Life in the USA, and is
building a new European business.

Alongside its wholly owned operations in Asia, Prudential has formed
successful joint venture partnerships and strategic alliances with some of the
region's leading financial institutions including CITIC (China International
Trust and Investment Corporation), India's ICICI, Bank of China and Standard
Chartered Bank.

About Korea Zinc Company LTD (parent of YoungPoong Life)

Established in 1974, Korea Zinc Company LTD is focused in the business of
metals manufacturing. Korea Zinc is a quoted on the KOSDAQ and has subsidiary
operations in Australia and the USA, Sun Metal Ltd and Big River Zinc Inc.

Prudential has been advised by Lazard.