Heungkuk Life Insurance Early repayment failure… Debt Market'Shair '

Heungkuk Life decided not to repay the repayment of a new foreign currency capital securities (permanent bond).

According to the insurance industry on the 3rd, Heungkuk Life decided not to repay about $500 million in new capital securities, which was scheduled for the 9th. As a result, it is expected that it may be difficult to issue foreign currency bonds in the future.

new capital securities are determined by maturity, but can be extended according to the company's decision, which is recognized as an accounting capital.

Instead, if the company is designated as a bad financial company from the financial authorities, it can stop bonds and payments.

Heungkuk Life said, We tried to raise funds through additional issuance of new capital securities of $300 million, but it was difficult to issue market investor sentiment.

The early repayment of new capital securities in the domestic financial sector was unsuccessful, 13 years after Work Bank's subordinated debt in 2009.

In 2009, when Work Bank did not repay new capital securities early, the market was shaken as the price of korean bonds plummeted.