Journalist

Lee Seo-young
  • South Korea’s Youth Future Savings Plan to Offer Tax-Free Interest Up to 75 Million Won in Salary
    South Korea’s Youth Future Savings Plan to Offer Tax-Free Interest Up to 75 Million Won in Salary The South Korean government has finalized key details of its planned “Youth Future Savings Plan,” expanding the income threshold for benefits to 75 million won in annual salary and adopting a three-tier support structure that differs from the existing Youth Leap Account. On April 23, the Financial Services Commission said it shared the product structure and eligibility standards at a pre-launch review meeting held the previous day. The plan is a three-year, flexible installment savings product for people ages 19 to 34. Participants can deposit up to 500,000 won a month, with the government providing matching contributions depending on income and eligibility. Compared with the Youth Leap Account, the new plan simplifies support from five tiers to three. Enrollment will also shift from year-round sign-ups to recruitment twice a year, in June and December, making timing more important for applicants. Benefits will vary by total annual salary. The government raised the upper income limit from 60 million won under the Youth Leap Account to 75 million won. For those earning more than 60 million won and up to 75 million won, there will be no government contribution, but interest earned will be tax-free. For those earning 60 million won or less, the standard plan adds a government contribution equal to 6% of monthly deposits. If a participant deposits the 500,000 won monthly maximum, that equals 30,000 won a month, or 1.08 million won over three years, with interest also accruing on the contribution. A preferred plan applies to participants who meet additional requirements, such as employment at small and medium-sized enterprises. If conditions are met, including total annual salary of 36 million won or less, the contribution can rise to as much as 12% of monthly deposits. At the 500,000 won monthly maximum, that would be 60,000 won a month, or 2.16 million won over three years. Assuming a 6% interest rate, the commission said depositing 500,000 won a month for three years would build assets of about 20.8 million won under the standard plan and about 21.9 million won under the preferred plan, including government contributions and interest, on principal of 18 million won. The interest rate has not been set; the commission said it expects details to emerge around late May after selecting participating financial institutions. The maturity period is three years, shortened from five years under the Youth Leap Account. The product will be run as a flexible installment savings plan with a monthly cap of 500,000 won. Work-related conditions are included. Preferred-plan participants employed at small and medium-sized firms must remain on the job for a specified period before maturity to keep benefits, and job changes will be allowed no more than twice during the subscription period. The age rule will be partially eased. While the basic eligibility is ages 19 to 34, people who turned 35 in the gap between the end of the Youth Leap Account and the launch of the new product will be allowed to enroll as an exception. Military service time will be excluded when calculating age eligibility. Current Youth Leap Account holders will be allowed to switch to the Youth Future Savings Plan only during the first recruitment period in June. In that case, even if the existing account is closed early under a special termination process, government contributions and tax benefits will be maintained. Enrollment will be handled online through bank apps. Eligibility will be reviewed through electronic links with the National Tax Service and other systems, without requiring applicants to submit separate documents. 2026-04-23 15:25:05
  • Korea’s Insurance Industry Cuts Power Use, Limits Driving Amid Energy Supply Concerns
    Korea’s Insurance Industry Cuts Power Use, Limits Driving Amid Energy Supply Concerns The insurance industry has moved into a companywide conservation mode as energy supplies have become less stable due to the prolonged situation in the Middle East. Measures described as emergency steps are spreading across the sector, from limits on vehicle use to tighter controls on office electricity consumption. The Korea Life Insurance Association and the General Insurance Association of Korea said on the 23rd that insurers are actively joining energy-saving efforts in response to the energy crisis tied to the extended Middle East situation. The associations and insurers are pursuing voluntary reduction plans tailored to each workplace, in line with the government’s emergency energy response stance. With a “caution” alert issued over a resource security risk stemming from unstable crude oil supplies, insurers are implementing a five-day vehicle rotation system alongside public institutions. Some insurers have expanded the policy to an even-odd driving system depending on conditions. They are also encouraging public transit and using staggered work hours and remote work to spread out commuting demand. Insurers are also cutting energy use inside offices. They are turning off lights in shared areas after hours and emphasizing routine steps such as shutting down PCs when leaving work. To improve heating and cooling efficiency, they are maintaining recommended indoor temperatures and reducing unnecessary equipment operation to minimize waste across day-to-day operations. Additional steps are being expanded, including adjusting elevator operating hours and outdoor sign lighting times and improving lighting efficiency. Some insurers are running internal power-saving campaigns to encourage employee participation. 2026-04-23 14:33:18
  • NH NongHyup Property & Casualty Invests in Disability Employment Workplace OLMO
    NH NongHyup Property & Casualty Invests in Disability Employment Workplace OLMO NH NongHyup Property & Casualty Insurance has invested in a standard workplace for people with disabilities as it moves to strengthen its ESG management. The insurer said Thursday it made an equity investment in OLMO, a standard workplace for people with disabilities, to expand employment and advance social value. OLMO is a culture and arts-focused workplace that hires artists with disabilities and provides professional training and creative space. It operates hubs in areas including Ilsan, Bucheon and Hanam, contributing to job creation for people with disabilities. NH NongHyup Property & Casualty invested in OLMO Incheon. The investment is a shared-growth model combining an equity stake with cooperation in workplace operations. It aims to provide artists with disabilities a stable environment to create and a foundation for professional independence. CEO Song Chun-su said the investment is meant to go beyond providing jobs by building a base that allows artists with disabilities to continue their work. He said the company will continue support to advance social value. NongHyup Federation and its affiliates have been expanding social contribution programs — including support for rural communities, environmental protection, and assistance for people with disabilities and multicultural families — as they strengthen ESG management.* This article has been translated by AI. 2026-04-23 09:46:05
  • Korean Card Issuers Face Profit Squeeze as Mid-Rate Loans Rise and Card Loans Are Curbed
    Korean Card Issuers Face Profit Squeeze as Mid-Rate Loans Rise and Card Loans Are Curbed Korean card issuers are being squeezed as they are pressed to expand mid-rate lending while facing tighter limits on card loans, a key profit driver. The policy mix is forcing companies to grow lower-margin loans and rein in higher-margin products, increasing strain across the industry. In the first quarter, card issuers’ mid-rate loan originations totaled 2.5708 trillion won, the highest quarterly figure on record, according to the financial sector on Tuesday. The rise contrasted with a declining share of mid-rate loans at commercial banks and a roughly 40% year-on-year drop in originations at savings banks, leaving card issuers as the main lenders expanding this segment. The increase has been driven largely by regulators’ policy direction. Authorities have repeatedly called for more mid-rate lending to improve access to credit for mid- and low-credit borrowers. As a result, card issuers’ mid-rate loan originations in 2025 rose 43% from a year earlier to 7.9190 trillion won. But profitability remains a concern: mid-rate loans carry relatively lower interest rates and higher risk, limiting returns for card issuers. At the same time, card loans — a major source of earnings — are under scrutiny. In the first quarter, the outstanding balance of card loans at nine card issuers (Lotte, BC, Samsung, Shinhan, Woori, Hana, Hyundai, KB Kookmin and NH NongHyup Card) reached a record 42.9942 trillion won. Financial authorities are reported to have capped this year’s growth in card issuers’ household lending balances at about 1% to 1.5% from the end of last year, citing household debt management. That is less than half last year’s target range of 3% to 5%. Industry officials say the combination is weighing on both profitability and asset management. With bank lending standards tightening, demand from mid- and low-credit borrowers has been flowing to card issuers, they said. If card loans are also constrained, issuers’ capacity to supply credit could shrink, raising concerns about overall lending operations. Regulators say they plan to offer incentives to encourage more mid-rate lending, but the industry argues the additional impact may be limited because volumes have already been expanded. “We have already increased mid-rate loans in line with the policy direction,” a card industry official said. “If card loans are regulated at the same time, it could make loan management itself difficult.” * This article has been translated by AI. 2026-04-22 15:57:00
  • FSS: More Financial Firms Put Consumer Protection on Board Agendas and KPIs
    FSS: More Financial Firms Put Consumer Protection on Board Agendas and KPIs Financial firms are increasingly adopting management practices that put consumer protection at the center, South Korea’s Financial Supervisory Service said.  The watchdog said that, among 77 companies subject to its financial consumer protection assessment, 69 now report their consumer protection management strategy to their boards of directors. It also said 15 companies operate a consumer protection-related subcommittee within the board.  The FSS said the biggest shift is the board’s role. The number of companies that directly report consumer protection strategies and policies to the board rose to 69 from 55, while those that set up a related board subcommittee increased to 15 from two. The agency said consumer protection is moving beyond day-to-day operations and into discussion at the top decision-making level. The FSS cited examples. Hana Securities runs a consumer risk management committee led by outside directors and regularly reviews related agenda items. Tongyang Life appointed an outside director with expertise in consumer protection policy and then created a Financial Consumer Protection Committee. The agency said boards are shifting from simply receiving reports to making judgments themselves. The standing of chief consumer officers, or CCOs, has also strengthened. The FSS said 64 companies granted CCOs the right to reach prior agreement on key matters such as KPI design and the authority to demand improvements. It said 51 companies now guarantee CCO terms of at least two years, giving consumer protection units a minimum level of authority to check sales-driven structures. Samsung Securities changed the appointment and dismissal of its CCO to a matter requiring a board resolution and put the CCO’s authority in writing, the FSS said. KB Card extended the CCO term to three years and arranged for an effective veto to apply in key decisions, it said. Changes are also spreading to performance and compensation systems. The FSS said 69 companies reflected consumer protection indicators in CEO KPIs, and some firms moved to expand related organizations and staffing.  Still, the FSS said more work is needed for the system to take hold. It said 41 companies — about half — appointed directors with consumer protection expertise, and 45 reflected related indicators in employee KPIs. Follow-up actions managed through IT systems also fell short of half, it said. * This article has been translated by AI. 2026-04-22 12:05:36
  • Kakao Pay Insurance Revamps Policy for Elementary and Middle School Students
    Kakao Pay Insurance Revamps Policy for Elementary and Middle School Students Kakao Pay Insurance has revamped an insurance product for elementary and middle school students, strengthening coverage for risks tied to school life. The company said Tuesday it revised its “non-dividend elementary and middle school student insurance,” simplifying benefits and improving practicality. It reorganized the plan from seven basic coverages and five packages into six core coverages and two packages to make enrollment easier. The revision adds expanded protection related to school violence and legal disputes. It provides up to 1 million won in treatment costs for victims of school violence and up to 20 million won in civil lawsuit legal fees, broadening coverage from medical care to dispute response. The six core coverages are emergency room visit costs, school violence victim coverage, civil lawsuit legal fees, fracture diagnosis benefits, treatment costs for injuries from car accidents, and hospitalization benefits for traffic injuries. The product also offers 23 disease- and injury-related riders, covering illnesses such as influenza and pneumonia and accidents such as fractures and burns. The plan comes in a basic option and a more comprehensive option, and customers can also tailor coverage by selecting only the riders they need. A company official said the changes reflect risks that occur in school life and strengthen practical protection.* This article has been translated by AI. 2026-04-22 09:37:45
  • Korean Drivers Boost Auto Insurance Coverage While Cutting Premiums With Mileage Discounts
    Korean Drivers Boost Auto Insurance Coverage While Cutting Premiums With Mileage Discounts Even as vehicle prices rise, auto insurance customers are increasingly buying higher coverage limits while paying less in premiums, reflecting a clear shift toward cost-conscious policies. Wider use of non-face-to-face sales channels and discount riders is helping drivers pursue both stronger protection and lower costs. According to the Korea Insurance Development Institute on Monday, its analysis of 2025 private passenger auto insurance policies found the average insured value of new cars rose to 52.43 million won in 2025 from 48.47 million won in 2023. As values climbed, 85% of policyholders carried property-damage liability limits of at least 300 million won, and 51% carried limits of 1 billion won or more. Comprehensive coverage for damage to the insured vehicle was purchased by 85.8% of drivers. Among electric-vehicle owners, the take-up rate reached 96.1%, reflecting battery replacement costs and the risk of total loss. The institute said the move toward higher coverage appears tied not only to higher vehicle prices but also to growing repair burdens driven by rising parts costs and labor rates. Sales channels are also shifting quickly toward online purchases. The share of policies sold through CM (online) channels, which tend to offer lower premiums, reached 51.4%, well ahead of in-person sales at 31.7%. Among drivers in their 30s, CM usage was 69.1%. The institute said online enrollment is also increasing among those 60 and older, narrowing the gap between channels. Discount riders have effectively become standard. The mileage-based discount rider had an enrollment rate of 88.4%, and 66% of those enrolled met the refund threshold, receiving an average refund of 133,000 won. The refund amounted to about 10% of total premiums. Discounts for advanced safety features are also expanding. Installation rates for automatic emergency braking and lane-keeping systems rose to about 44% each, and insurers are continuing to broaden eligibility for discounts. At the same time, the share of policyholders in preferred rating tiers that qualify for premium discounts increased to 89.5%. “The tendency to consider both expanded coverage and premium savings at the same time is strengthening,” the institute said.* This article has been translated by AI. 2026-04-21 18:33:42
  • South Korea Sees Crypto-Related Complaints Surge More Than 1,000%, Regulator Says
    South Korea Sees Crypto-Related Complaints Surge More Than 1,000%, Regulator Says Crypto-related complaints surged more than 1,000% in a year, driving an overall rise in financial complaints as exchange-related dissatisfaction grew alongside an investment boom. According to the Financial Supervisory Service report, “2025 Trends in Financial Complaints and Financial Counseling,” released on the 21st, crypto-related complaints totaled 4,491 last year, up 1,014.4% from the previous year. The jump was a key factor behind growth in complaints in the financial investment sector. Financial investment complaints rose 65.4% to 14,944 over the same period. Crypto complaints accounted for 30.1% of all financial investment complaints, emerging as a major category. Most crypto complaints involved exchanges, including failure to deliver promised benefits from promotional events and inconvenience using systems and services. The FSS said dissatisfaction built quickly as investor protection systems remained relatively weak. Overall financial complaints also increased. Total complaints last year rose 10.4% to 128,419. By sector, insurance complaints climbed. Nonlife insurance complaints increased 19.6% to 48,281, and life insurance complaints rose 12.0% to 14,656. Disputes over how insurance payouts are calculated and paid, and whether exclusions apply, were cited as key drivers. Banking complaints fell 10.2% to 21,596, but complaints tied to voice phishing jumped more than 125%, reflecting growing inconvenience during responses to financial fraud incidents. The volume of cases handled also rose. Financial complaints processed last year increased 17.0% to 127,809, and the average processing time lengthened by 5.1 days to 46.6 days. The acceptance rate edged up to 41.3%. The acceptance rate for dispute-related complaints rose sharply to 54.7%, which the FSS said strengthened relief for 피해 victims. * This article has been translated by AI. 2026-04-21 16:48:30
  • KB Kookmin Bank Expands Mobile Rate-Reduction Requests for Sole Proprietors
    KB Kookmin Bank Expands Mobile Rate-Reduction Requests for Sole Proprietors KB Kookmin Bank said Thursday it will expand the scope of its non-face-to-face service for sole proprietors seeking lower loan rates, aiming to reduce interest burdens and improve access. Under South Korea’s “right to request an interest rate reduction,” borrowers can ask a financial company to cut their rate when their credit profile improves, such as through employment, higher income or better credit. With the change, sole proprietor customers can apply and check results through KB Corporate Star Banking and internet banking without visiting a branch, regardless of loan type. The bank also introduced a new “credit improvement guidance” service for cases in which a request is not approved. It provides five categories of information — personal details, bank transaction data, loan transaction data, card usage data and delinquency information — to help customers manage their credit. A company official said the move is intended to help busy small business owners use financial services more conveniently and benefit from lower rates, adding that the bank will continue expanding inclusive finance services to protect consumer rights and ease financing costs.* This article has been translated by AI. 2026-04-10 14:21:00
  • Korean Banks Shift Small-Business Lending to Sales-Based Credit Scores
    Korean Banks Shift Small-Business Lending to Sales-Based Credit Scores South Korean banks are moving to expand financing for small business owners by adopting credit-scoring models that factor in nonfinancial data such as sales and local market conditions. The shift aims to improve access to credit by moving beyond assessments centered on collateral and past borrowing history and by weighing growth potential. Major lenders including KB Kookmin Bank, Shinhan Bank and Woori Bank are taking part in a pilot program for the Financial Services Commission’s Small Business Specialized Credit Scoring Model, known as SCB, the financial industry said Thursday. SCB is designed to evaluate future growth potential using nonfinancial indicators including sales, industry type, commercial district conditions and business capability, in addition to traditional measures. Banks plan to use SCB to identify small business owners with strong growth prospects and offer tailored support such as higher loan limits and preferential interest rates. The model is also expected to provide more precise assessments for sole proprietors with limited credit histories by focusing on business competitiveness. Woori Bank said it plans financial support totaling about 300 billion won and will pilot SCB in reviews for new loans to sole proprietors starting in the second half of the year. Shinhan Bank said it will apply preferred review standards — including higher limits and rate benefits — for new sole-proprietor loan applicants with strong SCB grades. KB Kookmin Bank said it will run the pilot with the commission for about a year and provide rate and limit benefits mainly through its business-loan products, including KB Ilsacheonri Loan and KB Together Loan. The SCB model was developed by combining existing business credit grades with growth grades calculated by the Korea Credit Information Services using alternative data such as technology capability, sales and online platform information. The Financial Services Commission previously identified the SCB rollout as a key task at a task force meeting on overhauling the credit evaluation system and asked financial institutions to join the pilot. Seven banks, including major commercial lenders, are participating. * This article has been translated by AI. 2026-04-10 14:03:00