Korea Exchange (KRX) said on the 6th that it held the "30-year government bond futures activation seminar" jointly with the Korea Insurance Research Institute.
About 80 experts from the insurance industry, the derivatives industry, and the accounting field attended the seminar. They diagnosed the constraints on insurance companies' risk management using derivatives and discussed how to use 30-year government bond futures for asset-liability management (ALM).
Jeon Ju-hyeon, a professional at Samsung Life Insurance, gave a presentation on "Current status of interest rate risk management at life insurers." Jeon said, "Government Bonds futures have the advantage of easy two-way trading and low funding needs," adding, "With additional policy incentives, we could trade more actively."
Next, Noh Geon-yeop, a Deputy Minister at the Korea Insurance Research Institute, presented on "The financial impact of recognizing gains and losses from insurance liability valuation and the use of 30-year government bond futures." Noh proposed ways to enhance utilization, including macro hedge accounting and recognizing profit and loss for the interest rate risk component among changes in insurance liabilities. Noh noted, "By using 30-year government bond futures, insurance company risk management can change efficiently, and we can expect positive effects such as promoting productive finance."
In the ensuing panel discussion, Kim Gi-dong, a Director General at Korea Exchange (KRX), served as the moderator. Panelists included ▲ Kwon Yong-u, Head of Team at the Korea Accounting Standards Board ▲ Jeong Han-sol, associate executive director at Meritz Securities ▲ Heo Tae-o, senior research fellow at Samsung Futures ▲ Kim Min-gyu, Vice Administrator at Kyobo Life Insurance, who shared opinions on ways to activate 30-year government bond futures.