Hanwha Life to acquire 40% stake in Indonesia's Nobu Bank

Hanwha Life Insurance’s board of directors approved the decision to acquire a 40-percent stake in Nobu Bank, an Indonesian commercial bank, the company said Wednesday.

With the move, the insurer is expanding from its current focus on insurance services to the banking sector in the Southeast Asian country. Upon completion of the purchase, Hanwha Life will be the first insurance company in Korea to run an overseas banking business.

The decision was made during an extraordinary board meeting on Tuesday, according to the insurance company.

PT Bank Nationalnobu Tbk, known as Nobu Bank, is a mid-sized local bank located in Tangerang, Indonesia, owned by Lippo Group, the country’s sixth largest conglomerate.

The deal will be completed after the formal contract is signed and approval is granted by financial authorities in both Korea and Indonesia.

In March of last year, Hanwha Life and its subsidiary Hanwha General Insurance acquired a combined 62.6 percent stake in Lippo General Insurance. Hanwha aims to tap into Lippo Group's brand awareness in Indonesia to further bolster its foothold in the country through the partnership.

“Hanwha Life already maintains a leading position in the domestic market through proactive management, but to overcome limitations at home and ensure continuous growth, accelerating our global strategy is essential,” said Yeo Seung-joo, Hanwha Life vice chairman and CEO.

Through the latest investment, Hanwha Life expects Indonesia to become “a key hub in our strategy to expand into the Southeast Asian market,” Yeo added.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]