Korean Reinsurance Co. obtained preliminary approval from the China Banking and Insurance Regulatory Commission to open a branch in Shanghai, The Korea Economic Daily reported Oct. 11.

This comes after the company filed a branch opening application in November 2014, with the South Korean insurance industry attributing the delay to geopolitical concerns between South Korean and China.

Korean Reinsurance has up to a year to complete its preparations to open the branch before it can receive final regulatory approval.

It has an office in Beijing, which is not allowed to conduct sales activities, the report said.

Korean Reinsurance set up a U.K. subsidiary in 2015, a branch in Malaysia in 2017, and a branch in the United Arab Emirates in 2018.

The company plans to set up its second European subsidiary, in Switzerland, in 2019.