Kyobo Life Insurance Bolsters Asset Management with Aircraft Engine-Based Trust
Kyobo Life Insurance is set to broaden its comprehensive property trust business by participating in an innovative financial service involving aircraft engine fragmentation investment. This initiative, announced on March 21st, comes after the Financial Services Commission (FSC) designated Kyobo Life as a trust business operator for a project focused on aircraft engine-based trust beneficiary securities.
Kyobo Life Insurance’s headquarters. The core of this project is a service that issues trust beneficiary certificates backed by aircraft engines and then distributes them through a platform. Galaxy Money Tree, a company specializing in integrated electronic payment (PG) solutions, purchases and trusts aircraft engines—real assets—as the business manager and issuer. Kyobo Life Insurance, in its role as the trust business, is then responsible for managing these tangible assets and subsequently issuing the beneficiary certificates.
Through this arrangement, Kyobo Life Insurance utilizes electronic registration to manage the real assets and issue trust beneficiary certificates. Galaxy Money Tree further engages investors by distributing token securities (STO), which mirror the beneficiary securities, on platforms such as Shinhan Investment & Securities, using blockchain distributed ledger technology.
This project allows Kyobo Life Insurance to liquidate assets by issuing beneficiary securities from a non-monetary property trust linked the aircraft engine and, combined with new technologies, will expand the realm of aviation financial investment so ordinary investors now have the same opportunities reserved for institutional investors previously.
An official from Kyobo Life Insurance expressed enthusiasm about the initiative, stating, “Through this comprehensive property trust, we will be able to contribute to the expansion of the domestic asset securitization market and the revitalization of fragmentation investment.” The official further highlighted the company’s commitment to “guaranteeing customers throughout our lives and strengthening the capabilities of comprehensive asset managers with differentiated competitiveness in the comprehensive property trust business.”
