South Korea’s NongHyup Financial Group Inc. is accelerating its inroads into the insurance market in China and other Southeast Asian countries in partnership with local companies, strengthening its overseas business portfolio.
According to NongHyup Financial Group on Sunday, its two affiliates NongHyup Property & Casualty Insurance and NongHyup Life Insurance will hold a stake in new insurance companies in China that will be set up in partnership with China’s All China Federation of Supply and Marketing Cooperatives.
The Chinese Group aims to launch a property insurance firm with an investment of 1.5 billion yuan ($237 million), with NongHyup Property & Casualty Insurance holding less than a 20 percent stake in it. NongHyup Life Insurance also plans to join the move when the Chinese cooperative establishes a new life insurance company.
On top of that, NongHyup Financial Group is seeking new business opportunities also in Vietnam with the insurance unit of the company’s largest Vietnam Bank for Agriculture and Rural Development (Agribank). It is considering the option of buying a stake in a local insurance firm.
“We’ll share our experience and skills to China and Southeast Asia and use their large market and networks to expand our overseas businesses,” said Kim Yong-hwan, chief executive officer of NongHyup Financial Group.
By Chung Joo-won and Lee Ha-yeon
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