The Hyundai Group will sell financial units to a group led by the American International Group.
A spokesman for the Financial Supervisory Commission said the deal is worth one point one trillion won or eight hundred-60 million dollars. The South Korean government agreed to invest some 900 billion won in Hyundai's three debt-ridden units.
The U.S. consortium is to take over management control of Hyundai Securities, Korea's second largest brokerage. It will also manage the smaller units Hyundai Investment Trust and Securities as well as Hyundai Investment Trust Management.
The A-I-G group will take a 55 percent stake in Hyundai Investment Trust and Securities, the most ailing of the three firms.
The AIG group signed two memorandums of understanding last year to buy the troubled subsidiaries.
The deal marks the largest foreign investment in Korea's financial sector and a welcome shot in the arm for the government's efforts to spur reform.
The Hyundai Group has struggled with financial problems over the past year, sparking spin-offs of its key semiconductor and construction units earlier this year.