Financial Authorities: "DB Life Early Redemption Right Exercise Postponement Has No Impact on Bond Secondary Market"

[Asia Economy Reporter Song Hwajeong] Financial authorities stated that the postponement of DB Life Insurance's early redemption option exercise does not affect the bond secondary market as the bonds are not circulated in the market.

On the 3rd, the Financial Services Commission and the Financial Supervisory Service explained in a press release that the postponement of DB Life Insurance's early redemption option exercise was a contract modification agreed upon in advance between DB Life Insurance and the investors, and therefore it is not a default on the early redemption option.

DB Life Insurance's hybrid capital securities were issued domestically, not overseas, and are unrelated to foreign investors. Since the investors in these hybrid capital securities are few and the securities are not circulated in the market, there is no impact on the bond secondary market, according to the financial authorities.

A financial authority official said, "The FSC and FSS were aware of the schedule for exercising the early redemption option on DB Life Insurance's hybrid capital securities and will continue to monitor market conditions."

DB Life Insurance changed the call option exercise date for 30 billion KRW worth of hybrid capital securities, originally scheduled for the 13th, to May next year. DB Life Insurance explained that the 30 billion KRW is held by a small number of private investors and that the contract was modified through consultation with the investors. Earlier, on the 1st, Heungkuk Life Insurance also announced on the Singapore Exchange that it would not exercise the call option on 500 million USD (approximately 711 billion KRW) worth of foreign currency hybrid capital securities scheduled for the 9th of this month.

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