[Asia Economy Reporter Minyoung Kim] On the 25th, six financial groups disclosed for the first time information on their ownership and governance structures, capital adequacy, and internal transactions.
Kyobo Financial Group had the highest capital adequacy ratio, while Hyundai Motor Group had the lowest. Samsung Group had the largest volume of internal transactions.
The integrated disclosure targets are six non-holding financial groups with financial assets exceeding 5 trillion KRW: Samsung, Mirae Asset, Hanwha, Hyundai Motor, Kyobo, and DB.
The entities responsible for disclosure were the representative companies of each group: Samsung Life Insurance, Mirae Asset Daewoo, Hanwha Life Insurance, Hyundai Capital, Kyobo Life Insurance, and DB Insurance.
According to the integrated disclosure as of the first quarter, all six groups exceeded the regulatory capital adequacy ratio of 100% set by financial authorities.
Kyobo was the highest at 332.9%, followed by Samsung (294.5%), Hanwha (240.8%), DB (215.4%), Mirae Asset Daewoo (165.9%), and Hyundai Motor (165.1%).
The capital adequacy ratio is calculated by dividing eligible capital (loss absorption capacity) by required capital (the sum of minimum required capital by business sector). A higher adequacy ratio indicates greater capacity to respond to risks.
Through this integrated disclosure, the total amount of internal transactions by group was also revealed. Samsung had the largest internal transaction amount at 9.6065 trillion KRW. Mirae Asset Daewoo followed with 4.856 trillion KRW, Kyobo with 4.078 trillion KRW, Hanwha with 3.029 trillion KRW, DB with 1.2222 trillion KRW, and Hyundai Motor with 192.98 billion KRW.
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