The Financial Supervisory Service (FSS) of South Korea will turn a closer eye on insurance companies’ overseas alternative investments, after discovering around KRW1.2 trillion (SG$1.42 billion) of impaired assets in insurer’s portfolios.
On February 22, the regulator said it will create a risk management framework for insurers to deal with this issue within the first half of the year, Business Korea reported. The guidelines will oversee various processes, such as on-site due diligence and checking legal management relationships of collateral. It will also require insurers to institute a review process on investments with high loan-to-value ratios.
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