Joint Venture in China

Korea Life Insurance Co., South Korea’s second-largest life insurer, said Wednesday it will launch a joint venture in China in a bid to tap into the world’s second-largest economy.

Korea Life Insurance signed an agreement Tuesday with China’s state-run fund provider Zhejiang International Business Group Co. to set up a joint life insurer in Hangzhou, the provincial capital of Zhejiang, the Korean insurer said in a statement.

The 50-50 joint venture will be capitalized at 500 million yuan (US$ 78 million), with Korea Life Insurance to be in charge of its management.

Korea Life Insurance said the envisioned joint venture will help it gain a foothold in the Yangtze River Delta, the main industrial region in China.

Korea Life Insurance is a subsidiary of Hanwha Group, one of the leading family-run conglomerates in South Korea.

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