Lotte Group, a conglomerate whose businesses range from fast food to retail and construction, has joined the race to take over LIG Insurance Co., a local non-life insurer, industry sources said Monday.

According to the sources, Lotte picked Swiss banking giant Credit Suisse as its financial advisor for the acquisition, Ernst & Young Han Young as its accounting advisor and Milliman Korea as its actuarial advisor.

"It is true that we have an interest in buying LIG Insuarnce," a Lotte official said, "However, we are watching the situation since the schedule for the acquisition has yet to be set, simply having our advisors selected."

LIG Group, a mid-sized local business group, put up a 20.9 percent stake in its non-life insurance unit LIG Insurance to secure cash to compensate investors for losses incurred from its 2011 financial fraud scandal.

Late December, Tong Yang Life Insurance Co., South Korea's fifth-largest insurer, said that it will bid for LIG as part of an effort to boost its presence in the country's insurance market.

Meritz Fire & Marine Insurance Co. and other insurers are also reportedly vying to acquire LIG Insurance.

LIG Insurance recorded a net profit of 103.9 billion won ($98.3 million) in the April-September period of 2013 and revenue of 5.66 trillion won. (Yonhap News)