Korean Insurer Halts Bond Call Plan After Regulator’s Opposition

South Korean authorities pushed an insurer they deem to be under-capitalized to halt an early bond redemption plan, ending a row for now that has spooked the local credit market.

Lotte Non-Life Insurance Co. said Tuesday it will pause the plan to exercise a call option on a 90 billion won ($64.6 million) bond maturing in 2030, confirming earlier local media reports. It will consider adding more capital as soon as possible and try to resume the early repayment plan, a spokesperson said in a text message.