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Fubon Financial raises stake in South Korea joint venture to over 60%

2018/09/14 18:28:03

CNA file photo

Taipei, Sept. 14 (CNA) Fubon Financial Holding Co., one of the leading financial holding firms in Taiwan, said Friday that it has raised its stake in a life insurance joint venture in South Korea to a controlling stake of more than 60 percent.

In a statement, Fubon Financial said it has boosted its stake in Hyundai Life Insurance Co. to 62 percent from the previous 48 percent, making the joint venture a subsidiary of Fubon Life Insurance Co., the flagship insurance entity of the financial holding firm.

After taking the 62 percent share, Hyundai Life Insurance Co. was renamed "Fubon Hyundai Life Insurance Co.," according to Fubon Financial.

Fubon Life took a 48 percent stake in the joint venture in December 2015 and owned five seats on the company's 11-member board of directors, while Hyundai Motor Group owned a 50.2 percent stake.

In April 2018, Fubon Life participated in the joint venture's rights issue by investing about NT$6.4 billion (US$208 million). Earlier this month, the deal was completed and Fubon Life raised its stake in the joint venture to 62 percent.

Before completing the investment, Fubon Financial said it was eyeing more than half of the seats on the board of directors of the joint venture, while the company did not disclose in the statement the exact number of seats it has secured as a result of the deal.

In the statement, Fubon Financial Chairman Richard Tsai (蔡明興) said the investment in Fubon Hyundai Life Insurance represents a milestone for Fubon Financial, which has an ambition to explore the Asian financial market.

As a unit of Fubon Life, Fubon Hyundai Life Insurance is expected to become a springboard for the Taiwanese company to penetrate the East Asian market, Tsai said.

According to Fubon Hyundai Life Insurance, it turned a profit in the first half of this year, and the presence of Fubon Life, which has long-term experience in the financial market in Taiwan and has been expanding overseas, is expected to help the joint venture to grow further.

Fubon Financial has set a goal of turning the joint venture into one of South Korea's top 10 insurers by 2020.

Tsai said Fubon Financial is determined to seek more opportunities to work with its counterparts in the region in a bid to become a leader in the regional financial market.

(By Tien Yu-pin and Frances Huang)