Lotte Non-Life Insurance said on the 13th it withdrew its lawsuit seeking to cancel the Financial Services Commission's disposition recommending management improvement. The first hearing on the merits had been scheduled for May, but Lotte Non-Life Insurance dropped the suit and decided not to pursue legal action.
Lotte Non-Life Insurance filed an administrative suit after receiving the lowest level of prompt corrective action, a "recommendation for management improvement," from the financial authorities in November last year. Arguing that the decision—based on non-quantitative evaluation results—had potential illegality, Lotte Non-Life Insurance also sought an injunction, but it was dismissed late last year.
At the end of last month, the financial authorities rejected Lotte Non-Life Insurance's management improvement plan, saying it lacked specificity and feasibility. Accordingly, after going through the prior notice process for the disposition, the financial authorities plan to impose a "requirement for management improvement," a higher-level prompt corrective action.
The Financial Services Commission (FSC) will review a resubmitted management improvement plan from Lotte Non-Life Insurance. Lotte Non-Life Insurance said, "Payment of interest on hybrid capital securities was suspended under the Financial Services Commission's recommendation for management improvement, and the decision to withdraw the lawsuit does not change the suspension of interest payments."