Samsung Life Insurance to Prepay 50% to Investors in Redemption-Deferred Gold Trade Finance Fund

[Asia Economy Reporter Ki Ha-young] Samsung Life Insurance has decided to make an advance payment of a portion of the principal for the gold trade finance private equity fund whose redemption has been postponed.

According to the financial sector on the 11th, Samsung Life Insurance decided at the board meeting held on the 4th of this month to advance 50% of the principal to investors of the 'Universal Income Builder Fund Linked Derivative-Linked Securities (DLS)'. After the board resolution, Samsung Life Insurance notified the investors of the details and is currently proceeding with the advance payment.

The underlying asset of this product is structured to provide short-term loans for issuing letters of credit to trading companies dealing in physical gold in Hong Kong and earn interest income. NH Investment & Securities issued it as DLS, and it was mainly sold through Samsung Life Insurance's trust channel.

Since the outbreak of the novel coronavirus disease (COVID-19) this year, the financial conditions of the trading companies have worsened, causing delays in loan repayments and postponing the redemption to May next year. The total amount of postponed redemption is currently 61 billion KRW, of which Samsung Life Insurance sold 53 billion KRW.

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