South Korean insurers are continuing to issue corporate bonds to raise funds to prepare for higher capital requirements in preparation for the implementation of International Financial Reporting Standard (IFRS) 17.

Life and non-life insurers have issued a total of KRW580bn ($491.7m) worth of bonds this year, reported The Korea Times.

Among them, Meritz Fire & Marine secured KRW250bn by issuing 10-year subordinated bonds in May. DB and Tong Yang Life issued KRW30bn and KRW200bn worth of bonds, respectively, this year.

Hanwha and KDB Life have recently decided to issue KWR500bn and KRW240bn worth of hybrid securities in the second half of this year.

The IFRS 17, proposed to take effect in 2023, will require insurers to measure the liabilities of their insurance contracts by market, not book value.

Korean financial authorities have also planned to introduce the "K-Insurance Capital Standard," the nation's own new insurance liability market valuation system, at the same time as the IFRS 17. Under the K-ICS, the Financial Supervisory Service recommends domestic insurers to maintain the risk based capital ratios at above 150%. But for financial market stability, it is suggested that the RBC ratio be maintained at 200%.