South Korea: Nonghyup group plans expansion in insurance in Asia
Source: Asia Insurance Review | Apr 2018
ASEAN South Korea
Nonghyup Financial Group has said that it plans to enter the Chinese and Southeast Asian insurance markets as part of its effort to expand its presence abroad.
The financial arm of South Korea’s National Agricultural Cooperative Federation said two of its affiliates, NongHyup Property & Casualty Insurance and NongHyup Life Insurance, will be stockholders in an insurance company that will be set up in cooperation with its strategic partner in the All-China Federation of Supply and Marketing Cooperatives (ACFSMC), according to the Yonhap News Agency.
ACFSMC aims to establish an insurance firm with a capital of CNY1.5 billion (US$236.7 million), with NongHyup P&C Insurance holding a stake of less than 20% in the local company.
NongHyup Life Insurance plans to become a stockholder if the Chinese marketing cooperative launches a new life insurer down the line.
Looking at Vietnam
Besides the plans for China, NongHyup Financial said it is in talks with Agri Bank, Vietnam’s largest lender, to seek opportunities in the country’s insurance sector. This could involve the purchase of stakes in a Vietnamese insurer.
“The goal is to transfer NongHyup knowhow in insurance areas to these markets, while at the same time taking full advantage of local partners’ market channels that can ensure successful overseas operations,” NongHyup Financial’s CEO Kim Yong-hwan said. A