Samsung Life Insurance Decides 50% Interim Payment for Gold Fund with Redemption Suspension

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Samsung Life Insurance has decided to provide an advance payment of 50% on the 42.2 billion KRW sales amount of the gold trade fund with deferred redemption.

According to the financial sector on the 27th, Samsung Life Insurance resolved at the board meeting held the day before to prepay 50% of the 42.2 billion KRW investment amount to investors of the trust product 'Pacific Bridge Gold Income Specialized Investment Private Equity Fund No. 1.'

The maturity date of this product was on the 13th of last month, but redemption was deferred. The underlying asset of the product is the 'Universal Income Builder Fund,' which is structured to provide short-term loans for issuing letters of credit to trading companies dealing with physical gold in Hong Kong and earn interest income.

In August, the redemption of derivative-linked securities (DLS) issued by NH Investment & Securities, which were also based on the same underlying asset, was deferred. Samsung Life Insurance decided to prepay 50% of the 53.8 billion KRW investment amount of DLS investors linked to the Universal Income Builder Fund. So far, the total amount of Hong Kong gold trade fund-linked products sold by Samsung Life Insurance with suspended redemption amounts to 96 billion KRW.

A Samsung Life Insurance official stated, "Although the amount repaid from Hong Kong is still minimal, we decided to prepay 50% to protect our customers."

This content was produced with the assistance of AI translation services.