Hanwha to close deal

Asia Pacific

Reports suggest that the Hanwha group is close to resolving its differences with the South Korean government in its bid to buy Korea Life. This is despite a recent expression of doubt by Hanwha about the US$501.4mn deal which will give it and its Japanese partner, the Orix Corporation, a majority stake. Hanwha voiced concerns about the company’s chances in the increasingly competitive South Korean life insurance market of which Korea Life has an 18% share. Rival bidders for the embattled insurer included Metlife of the US. The latter dropped out of the bidding in March. The South Korean government acquired Korea Life in 1999 when the company ran into financial difficulties.