Kyobo Life Insurance Chairman Shin Chang-jae terminated the put option exercise price evaluation contract requested by EY Hanyoung. This is because EY Han Young decided to sign a designated auditor contract with Kyobo Life Insurance.

According to the industry on the 27th, Chairman Shin is expected to terminate the put option evaluation agency contract with EY Hanyoung and sign a contract with a new institution. Earlier in December last year, the International Chamber of Commerce (ICC) decided that Chairman Shin should calculate the price (put option exercise price) that should be bought back by financial investors (FI), and accordingly, Chairman Shin selected EY Hanyoung as an external evaluation agency on January 22.

The problem is that under these circumstances, the Financial Supervisory Service designated EY Hanyoung as a designated auditor of Kyobo Life Insurance on February 12. If you become a designated auditor, it is customary that the same company does not take over other cases due to conflicts of interest. For this reason, EY Hanyoung chose to work as a designated auditor after much consideration, and recently terminated the contract related to the evaluation of put options.

An investment bank (IB) industry official said, "The FSS's desk administration has unnecessarily delayed the time for FI, which is experiencing put option disputes."

The Financial Supervisory Service says it has complied with the procedures because there are more than 1,000 institutions subject to audit and designating audit institutions in accordance with asset rankings.

[Reporter Na Hyunjun]