Shin Kong Life's Foreign Exchange Reserve Accounting Sparks Controversy; FSC to Seek External Review

According to a report by CNA reporter Su Szu-yun in Taipei on the 26th, Shin Kong Life's increase of its foreign exchange valuation reserve by NT$47.5 billion, while simultaneously adding nearly NT$47.5 billion to the 'other assets' item on its financial statements, has attracted attention. The Financial Supervisory Commission (FSC) stated that the company will provide explanations, and the FSC will engage external experts and scholars to review the matter before making a judgment. If the treatment is deemed improper, 'those who signed the financial statements will be held responsible.' Shin Kong Life's foreign exchange valuation reserve dropped from NT$99.6 billion to NT$52.1 billion by the end of 2025. The FSC maintains that foreign exchange reserves are statutory, and both provisioning and withdrawal are subject to regulations, with withdrawals requiring FSC approval. Shin Kong Life listed the NT$47.5 billion under liabilities, but also listed the same amount under assets, leaving net worth unaffected. Tsai Huo-yen, Deputy Director-General of the Insurance Bureau, stated that the FSC had previously instructed Shin Kong Life to follow regulations. The FSC will review the company's explanations and supporting documents with the help of external experts. Wang Yun-chung, Deputy Director-General of the Banking Bureau, added that the Banking Bureau and Insurance Bureau are in close contact and will also review the appropriateness of the financial holding company's reports. If adjustments are required, the financial holding company's reports must also be updated by the end of May or June 1st.