2 Insurers Close Down; Korea Life Gets Assets

The Financial Supervisory Commission said Friday that it will liquidate insolvent Hyundai Life Insurance Co. and Samshin Life Insurance Co. and order them to transfer their assets to Korea Life Insurance Co.

The commission said that the decision would not affect policyholders, whose contracts and policy reserves will be moved to Korea Life.

The two life insurers' operations have been suspended since early March after they failed to improve their balance sheets through restructuring and the commission failed to find buyers for the ailing insurers.

As of the end of September last year, Hyundai Life's debts exceeded its assets by 608.7 billion won ($460 million), while Samshin had a negative net value of 66.2 billion won.

The financial watchdog also ordered troubled Ssangyong Fire & Marine Insurance Co. and Daishin Life Insurance Co. to improve their financial positions.

The two insurance firms failed to meet the solvency margin of 100 percent as required by the commission.

Ssangyong and Daishin are required to submit recapitalization plans within a month. If the plans are rejected by the commission, the insurers will be declared insolvent.

by Chung Sun-gu