Yuanta Securities Ultimately Loses Lawsuit Against China Anbang Insurance... "Provision Fully Set"

Supreme Court Dismisses Re-Appeal

Yuanta Securities announced on the 28th that the loss was finalized after the Supreme Court dismissed the rehearing regarding the approval and enforcement application of the Hong Kong arbitration award related to the sale of Dongyang Life Insurance shares. The loss amount due to the civil lawsuit defeat includes 150.3 billion KRW and delayed damages.

Previously, China's Anbang Insurance filed a damages claim worth 698 billion KRW against four parties, including Yuanta Securities, who sold shares of Dongyang Life. The Anbang Group argued that during the acquisition of Dongyang Life, the sellers failed to properly disclose the risks of meat-collateralized loans, resulting in losses after the acquisition. However, Yuanta Securities and others continued legal disputes, claiming the damages amount was exaggerated and some assertions were untrue. The case was escalated to the Hong Kong International Chamber of Commerce (ICC) for arbitration, and although an arbitration award was issued, the respondents proceeded with an appeal.

The company stated, "Provisions have already been set," and explained, "There is a sales ratio among the respondents, so the final compensation amount that our company will bear may vary."