South Korea’s non-life insurer Dongbu Insurance acquired a stake in a Chinese non-life insurance firm in an effort to tap overseas business opportunities beyond the saturated local market, the company said Sunday.

Dongbu Insurance said it has received approval from the financial authorities of South Korea and China to acquire a 15 percent stake in Ancheng Property & Casualty Insurance, becoming the third-biggest shareholder of the Chongqing-based firm.

It is the first time for a South Korean insurer to tap into the Chinese market through equity investment rather than the establishment of a local branch or unit.

Founded in 2006, Ancheng posted 10.4 billion won ($10.2million) in net profit last year, with capital of 709.2 billion won.

The two companies will form a committee to discuss ways to develop new insurance products and services in a bid to improve competitiveness and profit rates.

“The partnership will help both companies share know-how and experience,” a Dongbu official said. (Yonhap)