Journalist
RYU SO HYUN
2s0@ajunews.com
-
Financial Services Commission Adapts Rapid Response Strategy Recently, the Financial Services Commission (FSC) has accelerated its response time to pressing issues. While the so-called "six-hour rule"—the guideline to respond to sensitive matters within six hours—has been discussed in government circles, the FSC has been able to shorten its response time through real-time communication channels like Telegram. The FSC's improved response speed was evident in the recent controversy surrounding Sangnoksoo, a company established to manage private bad debts during the 2003 credit card crisis. Following a media report on May 12 that criticized the financial sector's lukewarm attitude toward transferring funds to the New Leap Fund, the FSC's actions drew significant attention. According to the financial sector, the issue gained prominence immediately after the report. FSC Chairman Lee Ok-won instructed his team to verify the facts before President Yoon Suk-yeol mentioned the matter on social media around 8 a.m. the same day. Later, Chairman Lee attended a Cabinet meeting at 9 a.m., where he outlined the FSC's response strategy regarding Sangnoksoo. Throughout the morning, the FSC confirmed the stance of member companies regarding the sale of bonds related to Sangnoksoo. By 4 p.m., a full meeting was convened, marking approximately 10 hours from the initial report to the gathering of member opinions and the meeting itself. The financial sector views this meeting as a turning point for quickly resolving discussions about the sale of Sangnoksoo bonds. The FSC's internal communication methods appear to support this rapid response. An FSC official noted, "These days, the FSC shares issues and directives in real-time through Telegram group chats. Initially, matters were shared mainly among the chairman and department heads, but now they are quickly communicated to junior staff as well." However, the swift timeline has led to various interpretations within the financial sector. The rapid sequence of events—from the morning report to the president's message, the Cabinet meeting discussions, and the FSC's confirmations and subsequent meeting—has raised questions. Some speculate that the government may have highlighted the Sangnoksoo issue to pressure the financial sector into participating in the New Leap Fund. The FSC has distanced itself from such interpretations, stating that it acted promptly to verify facts and implement necessary follow-up measures without any intent to pressure specific financial institutions or prior coordination with the presidential office.* This article has been translated by AI. 2026-05-18 17:15:25 -
Financial Sector Expands Bug Bounty Program, Offering Up to 10 Million Won for Reports 금융감독원과 금융보안원이 금융권 보안취약점 신고포상제, 이른바 ‘버그바운티’를 올해 대폭 확대한다. 가상자산사업자와 법인보험대리점(GA)까지 참여 대상을 넓히면서 점검 대상 금융회사는 지난해 32개사에서 올해 70개사로 두 배 이상 늘었다. On May 18, the Financial Supervisory Service and the Financial Security Agency announced a significant expansion of their bug bounty program aimed at identifying security vulnerabilities in the financial sector. The program will now include virtual asset providers and corporate insurance agencies (GA), increasing the number of participating financial institutions from 32 last year to 70 this year. The joint initiative, titled the “2026 Financial Sector Security Vulnerability Reporting Reward Program,” aims to proactively identify and address security weaknesses in digital financial services operated by financial companies. Under the bug bounty program, external participants, including white-hat hackers, can report newly discovered security vulnerabilities on financial company websites, mobile apps, and home trading systems (HTS) to receive rewards after evaluation. This year, the scope of participation has expanded to include not only traditional financial institutions such as banks, investment firms, and insurance companies but also virtual asset providers and GAs. As a result, the number of services eligible for vulnerability detection has increased to 306 across 70 companies, representing a 119% increase from the previous year. Eligible participants must be South Korean citizens and can apply through the Financial Security Agency’s “Financial Sector Software Supply Chain Security Platform” until August 31. The vulnerability reporting period runs from June 1 to August 31, and rewards of up to 10 million won will be given for each reported vulnerability after evaluation. Additional incentives will be provided to outstanding reporters. Financial authorities have noted that the need for security assessments is growing due to the increased use of artificial intelligence (AI), cloud transitions, and the spread of open-source software development in the financial sector. The initiative aims to enable financial companies to proactively respond to cyber threats by identifying unknown vulnerabilities early through the involvement of external experts.* This article has been translated by AI. 2026-05-18 14:12:27 -
BC Card Automates Financial Operations with Multiple AI Models, Reduces GPU Costs by 70% BC Card has enhanced the efficiency of its financial AI operations by connecting multiple specialized small AI models. This approach reduces costs and increases processing speed compared to the traditional method of relying on a single large language model (LLM). On May 14, BC Card unveiled its 'Agentic AI Operating Platform,' developed in collaboration with Red Hat, at the Red Hat Summit 2026 in Atlanta. The summit is an annual conference focused on open-source, cloud, and AI technologies hosted by the global open-source company Red Hat. The platform presented by BC Card combines several small language models (SLMs) tailored to specific tasks, allowing for simultaneous processing instead of concentrating all tasks on one LLM. Agentic AI refers to technology that enables AI to make decisions and take actions independently, beyond just providing simple answers. This structure has improved both the cost and speed of AI operations. SLMs can be optimized for specific tasks, yielding stable results while increasing inference speed by more than three times and reducing GPU resource usage by up to 70%. BC Card has leveraged its experience in processing over 10 billion payment transactions annually to develop an efficient AI operation method that distributes costly GPU resources effectively. This has led to faster service and lower operational costs. The platform is already being applied in real services. BC Card operates 'Eat.pl,' which analyzes real-time consumption patterns to recommend restaurants; 'BCGPT,' a generative AI platform that supports employee tasks; and 'MOAI,' which connects multiple AIs to automate tasks. Additionally, BC Card is making its self-developed AI models and specialized financial datasets available to the public. Approximately 38 LLMs have been released on the global AI open-source platform Hugging Face, achieving an average of over 100,000 downloads per month.* This article has been translated by AI. 2026-05-18 09:02:31 -
Kyobo Life Reports 60.7% Increase in Q1 Net Profit to 458.7 Billion Won Kyobo Life Insurance continued to improve its performance in the first quarter of this year, driven by increased sales of health and protection insurance and rising investment profits. On May 15, Kyobo Life announced that its consolidated net profit for the first quarter was 458.7 billion won, up 173.3 billion won, or 60.7%, from 285.4 billion won in the same period last year. The standalone net profit was 330.1 billion won, a 4.7% increase from 315.3 billion won a year earlier. Both insurance and investment profits contributed to this performance improvement. The insurance profit for the first quarter was 184.8 billion won, a 13.3% increase from 163.1 billion won in the same period last year. The steady growth in sales of protection products, including health insurance, and the introduction of new products tailored to customer demand, such as health insurance for seniors and chronic patients, enhanced product competitiveness. Investment profits also showed improvement. The investment profit for the first quarter was 259.4 billion won, up 7.1% from 242.3 billion won a year earlier. The company responded to interest rate volatility by actively trading long- and short-term bonds and preemptively incorporating high-quality assets. A rebalancing strategy that adjusted the stock and alternative investment portfolio according to market conditions also contributed to the increase in investment profits. The foundation for future profits has also expanded. The standalone new contract CSM (Contractual Service Margin) for the first quarter reached 415.9 billion won, a 61.6% increase from 257.3 billion won in the same period last year. This growth was influenced by the increase in sales of protection insurance, leading to a rise in profitable new contracts. Cumulative CSM also showed an upward trend. By the end of the first quarter, the cumulative CSM was 6.6869 trillion won, up 2.7% from 6.5110 trillion won at the end of last year. This increase reflects the rise in new contract CSM as well as the effects of stock price increases related to variable insurance.* This article has been translated by AI. 2026-05-16 00:06:21 -
BC Card Reports 65% Increase in Q1 Net Profit to 58.1 Billion Won BC Card significantly increased its net profit in the first quarter of this year. Although revenue from card-related services declined, a reduction in provisions and growth in proprietary card and interest income contributed to the rise. On May 15, BC Card announced that its consolidated net profit for the first quarter reached 58.1 billion won, a 65.2% increase from 35.2 billion won in the same period last year. Operating profit also rose by 19.0% to 42.5 billion won during the same timeframe. However, revenue from the core card acquisition business decreased. BC Card's revenue from card acquisition operations fell to 654.4 billion won, down from 676.6 billion won a year earlier. Income from member service fees and ancillary business fees also declined. In contrast, revenue from proprietary card fees increased to 16.8 billion won, up from 13.6 billion won in the previous year, while interest income expanded to 32.3 billion won. The reduction in expense burdens also positively impacted performance. The provision for credit losses in the first quarter was 3.6 billion won, a significant decrease from 12.8 billion won in the same period last year. As a result, despite the limited growth in operating revenue, both operating profit and net profit improved. Financial stability remained at a solid level. At the end of the first quarter, the adjusted equity capital ratio was 29.44%, slightly up from 29.28% at the end of the previous year. The ratio of delinquent loans increased to 1.17% from 1.11% at the end of last year, but still maintained a level in the low 1% range. The liquidity ratio in Korean won stood at 131.04%.* This article has been translated by AI. 2026-05-15 23:55:30 -
Lotte Insurance Reports Improved Q1 Operating Profit Amid Temporary Investment Losses 롯데손해보험이 올해 1분기 보험영업이익 흑자전환과 보험계약마진(CSM) 성장 등 본업 지표 개선세를 보였다. 다만 중동 전쟁과 유가 상승 등 글로벌 불확실성으로 금리가 급등하면서 투자손익은 일시적으로 악화됐다. Lotte Insurance reported a net loss of 19.8 billion won and an operating loss of 28.5 billion won for the first quarter of this year, reflecting the impact of interest rate hikes on the valuation of interest-bearing assets. The company recorded an investment operating loss of 55.7 billion won in Q1. Officials noted that this loss is primarily a temporary valuation loss on safe assets that guarantee principal at maturity. They expect that as market volatility decreases with the end of the war and normalization of conditions, these losses could be recovered. They also indicated that most of the temporary losses on certain foreign assets could be recouped, excluding hedge costs. In contrast, the core insurance business showed improvement. Lotte Insurance's operating profit for Q1 reached 27.2 billion won, a turnaround from a loss of 11.2 billion won in the same period last year. The improvement was attributed to growth in premiums from long-term protection insurance and enhanced operational efficiency. The future profit base, known as the Contractual Service Margin (CSM), also increased. At the end of Q1, the CSM stood at 2.509 trillion won, up 250.9 billion won, or 11.1%, from the previous year. The CSM amortization amount was 58.7 billion won, an increase of 6.4 billion won, or 12.3%, compared to Q1 last year. The key long-term protection insurance premiums continued to grow, reaching 641 billion won. Lotte Insurance is strengthening its profit base by improving cost efficiency in long-term insurance indirect costs and reducing expenses in auto and general insurance. Capital soundness also exceeded regulatory recommendations. As of the end of Q1 2026, the preliminary solvency ratio (K-ICS) was 164.4%. Lotte Insurance aims to manage its capital soundness stably based on the growth of operating profit and improvements in asset structure.* This article has been translated by AI. 2026-05-15 23:37:56 -
Financial Supervisory Service Chief Calls for Funding Shift to Productive Sectors The Financial Supervisory Service (FSS) is intensifying oversight to redirect funds concentrated in household loans and real estate project financing (PF) toward more productive sectors. The aim is to encourage financial institutions to actively support corporate investment and the real economy rather than relying solely on stable interest income. On May 15, the FSS held a plenary meeting of the 2026 Financial Supervisory Advisory Committee at the Bank Hall in Seoul, where they discussed the direction of financial supervision. In his opening remarks, Lee Chan-jin, the head of the FSS, noted, "The uncertainty in the global economy continues due to the impact of the situation in the Middle East that began in February. If high exchange rates and inflation persist, corporate activities may contract, and the difficulties faced by ordinary citizens and vulnerable groups could worsen." Lee emphasized the need for a shift in the direction of funding from the financial sector. He stated, "Financial institutions should not be fixated on easy interest income but should support productive sectors to foster economic growth." To achieve this, the FSS plans to manage risks related to household debt and real estate PF by implementing loan inspections and introducing limits on PF lending. The goal is to mitigate excessive capital flow into real estate and create conditions for funds to be supplied to productive sectors such as businesses. The FSS will also work on regulatory reforms to enhance the investment capacity of financial institutions. This includes rationalizing loss recognition for market risks in the banking sector and revising the calculation system for the insurance sector's solvency ratio (K-ICS) to broaden the foundation for investments in productive areas. Protecting ordinary citizens and vulnerable groups was also highlighted as a key supervisory task. The FSS aims to promote a culture of inclusive finance within the banking sector and support savings banks and mutual finance institutions in fulfilling their roles as community financial entities. Additionally, measures to combat financial crimes, including comprehensive strategies to eradicate voice phishing and one-stop support services for illegal lending, will be strengthened. This year, the Financial Supervisory Advisory Committee consists of 92 members, with the number of consumer-related representatives increased to 25 to align with academia, research institutions, and the financial sector. This change aims to more broadly reflect consumer opinions in the direction of supervision.* This article has been translated by AI. 2026-05-15 23:00:06 -
Korean Reinsurance Reports 131.4% Increase in Q1 Net Profit Korean Reinsurance reported a net profit of 209.5 billion won for the first quarter of this year, more than double the amount from the same period last year. The increase was attributed to gains from overseas bond evaluations due to rising exchange rates and a base effect from last year's high-claim incidents. The company announced on May 15 that its revenue for the first quarter reached 1.6981 trillion won, a 9.3% increase compared to the same period last year. The revenue growth was significantly influenced by increased evaluation gains from overseas bonds resulting from the rising exchange rates. As a global reinsurer, Korean Reinsurance has a considerable proportion of overseas investment assets and foreign currency-denominated assets, making it susceptible to fluctuations in exchange rates that can impact investment and evaluation profits. The net profit of 209.5 billion won represents a 131.4% increase from the previous year. This increase reflects the base effect from significant claims incurred during the same period last year, which included losses of 121.5 billion won from three major incidents: the LA wildfires, the Myanmar earthquake, and the Yeongnam wildfires. Reinsurers can experience substantial quarterly profit volatility based on the occurrence of high-claim incidents such as natural disasters, large fires, and industrial accidents. A representative from Korean Reinsurance stated, "The increase in performance was influenced by the base effect from last year's high-claim incidents. In the first quarter of this year, there were no major incidents leading to significant losses, and the increase in evaluation gains from overseas bonds due to rising exchange rates also contributed to revenue growth."* This article has been translated by AI. 2026-05-15 22:33:00 -
Mirae Asset Life Reports 534 Billion Won in Q1 Profit, Driven by Growth in Protection Insurance Mirae Asset Life has more than doubled its net profit in the first quarter of this year, thanks to an expansion in protection insurance sales. The company reported improvements in its health insurance product portfolio and continued growth in commission-based businesses such as variable insurance and retirement pensions. On May 15, Mirae Asset Life announced that its consolidated net profit for the first quarter reached 534 billion won, marking an increase of approximately 115% compared to the same period last year. This growth is attributed to a focus on profitability-driven sales strategies and risk management amid uncertain domestic and international conditions. Notably, the growth in new contracts for protection insurance was significant. The annualized premium equivalent (APE) for new protection insurance contracts in the first quarter was 1.01 trillion won, a 34.6% increase from the previous year. The company also saw an increase in its insurance contract margin (CSM), a key indicator of future profitability. The CSM for new contracts in the first quarter was 1.507 trillion won, up 6.8% year-on-year, while the CSM for existing contracts rose to 21.506 trillion won, a 4.5% increase from the end of last year. The CSM for protection insurance increased by 9.7%, and the CSM for health and injury insurance grew by 10.9%. The revenue structure remained stable, with insurance profit recorded at 7.7 billion won and investment profit at 586 billion won. Total assets were reported at 32.3 trillion won, with equity capital amounting to 24 trillion won. Commission-based businesses, including variable insurance and retirement pensions, continued to show growth. The reserve for variable insurance in the first quarter reached 13.3 trillion won, a 15.0% increase from the same period last year, while commission income from variable insurance rose by 15.7% to 14.3 billion won. Overall fee-based business performance expanded to 191.7 billion won compared to the previous year. A representative from Mirae Asset Life stated, "Despite the uncertain domestic and international environment, we focused on improving our product portfolio and risk management to achieve sustainable profit generation. We have achieved stable earnings based on solid fundamentals."* This article has been translated by AI. 2026-05-15 22:04:05 -
Hyundai Marine & Fire Insurance Reports 1st Quarter Net Profit of 223.3 Billion Won Hyundai Marine & Fire Insurance reported an increase in net profit for the first quarter of 2026, driven by improvements in long-term insurance, despite losses in auto insurance and poor investment performance. The company announced on May 15 that its standalone net profit for the first quarter reached 223.3 billion won, a 9.9% increase compared to the same period last year. The growth was primarily led by long-term insurance, which saw profits rise to 265.9 billion won, a 132.5% increase year-on-year. This improvement was attributed to a slowdown in the growth of actual payouts compared to expected claims, enhancing the gap between expected and actual insurance payouts. Additionally, managing a portfolio focused on high-profit products contributed to maintaining profitability. General insurance profits also increased by 9.4% to 50.2 billion won, thanks to the absence of unusual factors such as large claims and a stable overall loss ratio. However, the auto insurance segment faced challenges, reporting a loss of 14 billion won, marking a shift from profit in the previous year. This downturn was influenced by the cumulative effects of premium reductions implemented until 2025 and rising compensation costs. Investment performance also declined significantly, with investment income dropping by 94.3% to 6.1 billion won compared to the same period last year. This was due to valuation losses from bonds and alternative investments resulting from rising interest rates. Nevertheless, the company anticipates that if interest rates stabilize in the second quarter, some of these valuation losses may be recovered. The insurance contract margin (CSM), a future profitability indicator, stood at 9.17 trillion won, reflecting a 0.7% increase year-on-year. Hyundai Marine & Fire Insurance is managing a portfolio of high CSM products to ensure strong profitability. Furthermore, solvency indicators improved, with the solvency ratio (K-ICS) reaching 207.2% at the end of the first quarter, an increase of 17 percentage points from the end of the previous year. This improvement was achieved through duration matching management, which reduced market interest rate volatility, along with a decrease in required capital due to the improved gap between expected and actual payouts.* This article has been translated by AI. 2026-05-15 14:53:07