Check slated for Lone Star`s eligibility as top stakeholder

On Lone Star Fund`s eligibility as majority stakeholder of Korea Exchange Bank, Financial Services Commission Chairman Chin Dong-soo said Friday, "This is an issue being discussed and we have ample time to review."

He said this at a breakfast meeting of top insurance managers at Lotte Hotel in Seoul.

The commission said Chin meant that the agency will take time to review whether the U.S. fund was eligible to be majority stakeholder when it took over the bank in 2003.

On the controversy over the source of Hyundai Group`s capital for taking over Hyundai Engineering & Construction, Chin said, "This is up to the discretion of creditors," declining comment.

On claims that Korea must reconsider how to control capital inflow and outflow due to rising tension between the two Koreas, he said, "We won`t reconsider."

Chin urged the insurance industry to develop and introduce insurance products that effectively cater to changing social trends.

"Insurers need to proactively develop insurance products that can guarantee security from social risks stemming from the low birthrate and the aging population," he said. "The government will also support insurers to develop diverse products including personal pension paying lifetime premiums, individual health insurance, and insurance policy for long-term coverage of hospital expenses."

He objected, however, to the sector`s demand to expand the scope of long-term casualty insurance products.

yunjung@donga.com