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| Samsung Life Insurance CEO Hyun Sung-chul |
Samsung Life Insurance is seeking to make inroads into Vietnam through an equity investment in Bao Viet Life, the Southeast Asian country's largest life insurer.
Industry sources said Tuesday the firm is in talks with Bao Viet Life to acquire part of the latter's shares. It is the seventh-largest listed company in Vietnam.
"I understand the discussion is underway with Bao Viet," said an industry insider. "There are hurdles to be addressed regarding some legal issues with the Vietnamese government."
Bao Viet is Vietnam's largest life insurer with nearly 200,000 employees and life planners at its 75 branches across the country. The firm is topping the market share occupying 18.9 percent, followed by foreign insurers including Prudential and AIA.
The life insurer is fully owned Bao Viet Holdings in which the Vietnamese government owns a 72 percent stake. Bao Viet Holdings is also a listed firm on the Ho Chi Minh bourse with the market capitalization of over 3 trillion won ($2.65 billion).
The firm posted 734.4 billion won in sales in the first half of last year. Total assets stood at about 5 trillion won as of June last year.
The holding company has yet to allow foreign firms to acquire shares of its life insurance unit to date, but such a stance is expected to change soon since the Vietnamese government is pushing its plan to privatize some of the state-owned companies.
Samsung Life's move is in line with the Moon Jae-in administration's drive to strengthen its presence in the Southeast Asian region through its signature New Southern Policy.
The administration aims to expand Korea's ties with the ASEAN as the region's 10-member countries have emerged as Korea's second-largest trading bloc after China.
