SEOUL (Reuters) – A Chinese unit of South Korea’s SK Group has decided to set up an investment fund worth 1 trillion won ($848 million) with Hillhouse Capital, Korea Economic Daily said on Sunday, citing investment banking sources.

SK China, the South Korean conglomerate’s Chinese unit, will invest 100 billion won while Hillhouse Capital, an investor in China’s biggest technology firms including Tencent Holdings Ltd and Baidu Inc, is expected to invest the remaining 900 billion won in the fund, the report said.

A spokesman for SK Group told Reuters that SK China had decided to invest about 100 billion won in a fund to discover businesses that would help strengthen the company’s global competitiveness but declined to elaborate further.

($1 = 1,179.3300 won)