According to Korea's Financial Supervisory Service, announced on November 9, the country will extend the maximum observation maturity—the longest duration used for real market rates in insurance companies' asset and liability valuations—to 24 years starting in 2028, up from the current 23 years.

The extension comes as long-term bond yields rise, with the 10-year government bond at 3.853%, the 20-year at 3.969%, and the 30-year at 3.71% as of November 6, normalizing the yield curve. This trend reverses previous concerns among insurers that the maturity extension would lower discount rates and increase debt valuations; instead, higher rates now mean the extension will increase discount rates, reducing capital pressure.

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