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Listing of life insurance companies to be confirmed by this year

Listing of life insurance companies to be confirmed by this year

Posted November. 27, 2000 19:17,   


In order for life insurance companies such as Samsung Life and Kyobo to be listed on the stock market, a portion of profits derived from the listing will have to be apportioned to insurance holders. And, as existing shareholders worry about the threat of an encroachment on management rights, they prefer cash dividends. Existing regulations are less restrictive on cash dividends.

Chairman Lee Keun-Young of Financial Supervisory Commission (FSC) revealed that a plan for the listing of life insurance companies will be made by this year. This reconfirms the government's principle on confirming the listing of life insurance companies this year, which was deemed to be difficult by some.

An FSC official remarked, "If existing shareholders do not agree to a stock dividend, a cash dividend is the most feasible option and approval from FSC Chairman Lee on a cash dividend scheme in relation to the listing of life insurance firms is on the back burner."

A Samsung Life official stated, "Shinsaegae and other major shareholders are opposed to stock dividends and the Samsung group is also reluctant towards a stock dividend due to risk of management encroachment."

On one hand, Samsung and Kyobo will not be listing immediately after the government decides on a listing scheme and the timing of the listing will be decided on the stock market situation. Hence, the actual listing of Samsung and Kyobo will take a considerable period of time even after the listing plan is provided by the government.