Hanwha Life Insurance Co. is looking to expand into Southeast Asian as the first Korean insurer to venture into Indonesia’s banking sector.

The non-life insurer said on Wednesday that a provisional board meeting held the day before approved a proposal to acquire a 40 percent stake in Nobu Bank from Indonesia‘s multinational conglomerate Lippo Group. If approved by local financial authorities, Hanwha Life Insurance would become the largest single shareholder in Nobu Bank, a mid-sized institution ranked among Indonesia’s top 30 with total assets of 2.3 trillion won ($1.6 billion) and 115 branches across the country.

To maximize its investment in Nobu Bank in the near term, Hanwha Life Insurance is looking to integrate its digital capabilities into the bank’s operations. The strategy could involve establishing a hybrid system that provides digital banking and in-person services, with plans to bolster mobile-based sales.

The expected acquisition is anticipated to bring opportunities for the insurer to strengthen its insurance business in Indonesia even further. After acquiring a stake in local life insurer Multicor in 2012, Hanwha Life Insurance began operating the company in October 2013, which currently has 26 branches across Jakarta, Bali, and other Indonesian cities. The company also diversified its product portfolio in March 2023 by acquiring a 62.6 percent stake in Lippo General Insurance, a financing company affiliated with Lippo Group, alongside Hanwha General Insurance Co., Ltd. Lippo General Insurance ranks 14th among 77 local non-life insurers and has the second-largest market share in terms of health and accident insurance sales.

Hanwha Life Insurance’s success in its Indonesian ventures is attributable in part to the leadership of its chief global officer (CGO) Kim Dong-won. Kim, who assumed the role in February 2023, has been one of the leaders driving the company’s overseas expansion by fostering key relationships with his global counterparts and reportedly discussing the potential deal with Lippo Group Chief Executive John Riady at the Davos World Economic Forum (WEF) in January 2024.

By Lim Young-sin, Yoo Joon-ho Han Yubin

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