Heungkuk Life shakes up Korean financial markets with delayed call option redemption
An initial announcement by the life insurer to delay a foreign-currency bond redemption got called back, stoking concerns about the general economical situation in Korea, where institutions have been tested by a depreciating won.
The Korean financial markets were taken for a spin recently, when Heungkuk Life Insurance, a mid-sized actor in the Korean insurance industry, announced on November 1 that it would delay the exercising of a $500 million November 9 call option for its foreign-currency bonds — although ultimately, the insurer reversed its decision on November 7.
Heungkuk Life plans to repay the debt via its own capital and repo transactions, a spokesman said, and the exact amounts haven’t yet been d…
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