UPDATE 1-Hanwha sees $580 mln from insurance stake sale

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SEOUL, Oct 10 (Reuters) - Two main units of South Korea's Hanwha Group said on Friday they will sell shares in an unlisted insurance unit for about 807 billion won ($580 million) to help fund the group's bid for Daewoo Shipbuilding (042660.KS).

Hanwha is competing with the world's top shipbuilder Hyundai Heavy Industries (009540.KS) and a consortium of steelmaker POSCO (005490.KS) and energy-to-retail GS Group for a 50.4 percent stake in Daewoo, the world's No.3 shipyard.

State-run Korea Development Bank and another state-run agency are selling the stake, whose market value has more than halved to 1.7 trillion won ($1.3 billion) since August when bidders were invited amid a global credit crunch and slowing world economy.

Final bids for Daewoo are set to be received next week.

Hanwha (000880.KS), a de-facto holding firm of the Hanwha Group, and Hanwha Chemical (009830.KS) said they aim to sell 80.7 million shares in Korea Life Insurance, or about a 10 percent stake, at 10,000 won apiece to both local and foreign investors.

But they said in disclosures to the stock exchange that the stake sale would be made on condition that the group successfully concludes the acquisition of the stake in Daewoo Shipbuilding & Marine Engineering Co.

Hanwha Group has hired JPMorgan (JPM.N) to sell a 9.9 percent stake in Korea Life, hoping to raise $500-$750 million from foreign investors, sources with direct knowledge of the deal said last month. [ID:nHKG378]

Affinity Equity, Carlyle Group and MBK Partners are among several private equity firms interested in the stake, according to the sources. ($1=1390.3 Won) (Reporting by Kim Yeon-hee; Editing by Yoo Choonsik & Ian Geoghegan)