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LG to foray into financial services, insurance

Byas Anand in New Delhi

The South Korea-based LG group is planning to set up a financial services arm and foray into the Indian insurance sector.

A liaison office has already been established in India and the company is presently in the process of finalising a partner for its insurance venture, said J H Park, director (finance) of LG Electronics India Limited, a wholly owned subsidiary of LG Electronics.

Although the company is actively pursuing the option, no time-frame has been set for the same. ''We are very keen on entering the Indian financial services and insurance sectors, but are awaiting a clearer picture on the policy front. Alongside, we are scouting for a partner for the venture,'' he said.

The Indian government's standing committee has recommended allowing 40 per cent foreign equity in the insurance sector. The bill in this regard is still awaiting Parliament's clearance.

The LG Insurance Company Limited, Korea, was founded in 1959 and has already taken a leadership role in the domestic insurance industry with a projected turnover of 1,500 billion won (over $ 1 billion).

LG Insurance is not satisfied with its successes on the domestic front and is striving to become a global insurance company and is working hard in its internationalisation to achieve these goals.

The group is bui1ding up an international operation network, and as a first step, a subsidiary has been established in Hong Kong. Furthermore, there are plans to make inroads into southeast Asia, east Europe and China.

In addition to setting up a financial services venture in India, the LG group is contemplating producing liquid crystal display monitors in a joint initiative with Royal Philips Electronics of the Netherlands.

UNI

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