Hanwha Life Insurance Co. has become the first South Korean insurance firm to advance into the overseas banking sector by securing a controlling stake in Indonesia’s Nobu Bank.
The insurer, part of South Korea’s seventh-largest conglomerate Hanwha Group, has finalized the acquisition of a 40% stake and management rights in the banking arm of Lippo Group, Indonesia’s sixth-largest conglomerates, Hanwha said on Monday.
The deal closing follows a share purchase agreement signed with Nobu Bank in May last year.
Hanwha Life plans to offer digital and mobile banking services, as well as bancassurance products, targeting the younger generation in a country with a fast-growing middle class.
Those aged 30 or younger account for about half of Indonesia’s population.
“Through this investment, we have further solidified our presence as a global comprehensive financial group in Indonesia by entering the banking sector in addition to the life and non-life insurance markets, as well as the securities and asset management industries,” said Hanwha Life.
Indonesia will serve as its primary base for expansion in Southeast Asia.
Founded in 1990, Nobu Bank is a mid-sized lender with assets of 2.3 trillion won ($1.7 billion) as of the end of 2023. It specializes in mortgage loans and lending to small and medium-sized enterprises.
With 113 branches, it employs 1,200 people as of 2023, according to Hanwha.
In March 2023, Hanwha Life, together with Hanwha General Insurance Co., acquired a 62.6% stake in Lippo General Insurance, another unit of the Indonesian conglomerate.
By Yeonhee Kim
yhkim@hankyung.com
