Taekwang Industrial s recent surrender to Truston Asset Management, which had urged it not to finance its cash-strapped co-affiliate Heungkuk Life Insurance, led market observers to pay attention to how KT&G will respond to Flashlight Capital Partners (FCP) and Anda Asset Management, both of which have requested spinning off Korea Ginseng Corp (KGC).
Controversy is surrounding Taekwang Industrial as it looks to increase capital for Heungkuk Life Insurance through a board meeting. Shareholders and civic groups are calling on Taekwang Industrial to withdraw from the discussions, calling the move a breach of trust as the company has no affiliation with Heungkuk Life, according to industry officials, Tuesday.
In less than a week since Heungkuk Life Insurance decided to delay the exercise of a $500 million call option on its dollar-denominated perpetual bonds, sending a shockwave to Korean companies dollar bonds market, the life insurer reversed its position in a move to calm and rectify souring investment sentiment in Korean companies bonds markets.
SEOUL (Reuters) - South Korea's Heungkuk Life Insurance has decided to exercise a call option on its perpetual notes due on Wednesday, reversing its e.