Korean insurer Hyundai Life has reportedly placed 120 out of 450 employees under a voluntary retirement programme as the company faces mounting debt.

At the end of June, Hyundai Life posted cumulative losses of W220 billion (US$195 million) although its financial health has improved, with a 164% risk-based capital ratio standing. The recommended capital ratio standing is above 150%.

Sources said Hyundai Life has been in talks with its parent firm, Hyundai Motor, over a massive rights issue to bolster its capital base ahead of the new IFRS17 rule on the accounting of insurance products, to be introduced in 2021.