Journalist

Lee Seongjin
  • Insurers urge reforms to dementia trusts as aging fuels need to manage dementia money
    Insurers urge reforms to dementia trusts as aging fuels need to manage 'dementia money' As South Korea’s population ages and dementia cases rise, calls are growing to better manage patients’ assets — often referred to as “dementia money.” Experts and insurers say reforms to the trust system and a larger private-sector role in insurance and long-term care are needed to protect assets in a more structured way. According to the Ministry of Health and Welfare on the 27th, the dementia prevalence rate among people 65 and older is about 9.25%, and it exceeds 20% among those 85 and older. Dementia is increasingly viewed not only as a medical condition but as a social risk that can affect nearly every part of life for patients and their families. As a result, there is a growing recognition that dementia-related assets should be managed systematically to help pay for care and stabilize household finances. Specialists point to wider use of trusts as a key solution. They say the scope of assets eligible for trusts should be expanded, and standards and sales rules for managed trusts should be revised to ensure stable oversight of assets held by older adults with dementia. While such assets can include deposits, real estate, insurance and pensions, the range of property that can be placed in trust remains limited. Critics say public and private pensions and insurance claim rights — major sources of retirement income and care costs — should also be included. Access is also limited. Because dementia trusts are classified as financial investment products, enrollment procedures can be complex, and there is a lack of sales infrastructure. A uniform fee structure is also cited as an area for improvement. The industry also points to a structure centered on wealthy clients and narrow sales channels. Some have proposed easing qualification requirements for investment solicitation agents so insurance agents can recommend dementia trusts. Supporters say agents, who have frequent contact with older adults, could also help expand coverage by linking trusts with dementia insurance. A life insurance industry official said, “If efforts to expand dementia insurance and improve the trust system move forward together, it will be possible to manage the assets of older adults with dementia more safely and systematically.” 2026-04-27 15:57:19
  • Korea’s consumer relief policies add profit pressure on insurers and card firms
    Korea’s consumer relief policies add profit pressure on insurers and card firms Financial regulators in South Korea are rolling out a series of measures aimed at easing household costs, but the burden is increasingly being absorbed by financial companies. Insurers and card issuers say they support the policy goals, yet warn that added obligations are squeezing profitability at a time when their core businesses are already under strain. The Financial Services Commission on the 27th introduced a new auto insurance rider offering discounts for drivers who follow a vehicle-use restriction scheme. The measure is intended to respond to volatile global oil prices and encourage energy conservation. Industry officials, however, said it will effectively function as pressure to cut premiums, because insurers are expected to participate and premium revenue falls as enrollment rises. Under the rider, auto insurance premiums are discounted by 2% a year. Regulators estimate about 17 million vehicles could qualify. By simple calculation, that would shift roughly 240 billion won in costs to insurers. The added discount is likely to weigh on earnings, as auto insurance loss ratios are already above break-even levels. Major nonlife insurers have seen underwriting results drop sharply due to weak performance in indemnity health insurance and rising auto loss ratios. The combined insurance profit of four major nonlife insurers — Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance and KB Insurance — totaled 3.5782 trillion won last year, down 34.8% from the previous year’s 5.4892 trillion won. Card issuers are also facing heavier pressure. As regulators urge companies to expand benefits such as fuel discounts to ease oil-related costs, some products are being pushed into a loss-making structure, industry officials said. Performance has been weakening: the combined net profit of eight dedicated card companies — Samsung, Shinhan, Hyundai, KB Kookmin, Lotte, Hana, Woori and BC — fell 8.9%, or 230.8 billion won, to 2.3602 trillion won last year from 2.5910 trillion won a year earlier. “Each time there is a crisis, financial companies have been mobilized as tools to carry out policy,” an industry official said. “We want to participate, but conditions are not easy.” The official added that the burden is growing as volatility in interest rates and exchange rates increases. 2026-04-27 15:48:21
  • Fifth-Generation Private Health Insurance to Launch May 6, Cutting Premiums and Narrowing Some Noncovered Benefits
    Fifth-Generation Private Health Insurance to Launch May 6, Cutting Premiums and Narrowing Some Noncovered Benefits Fifth-generation indemnity health insurance will launch May 6, marking a broader overhaul of South Korea’s private health insurance system as insurers introduce redesigned coverage. The new plans are expected to lower premium burdens for consumers while insurers look to improve loss ratios. A key challenge, however, will be creating incentives for existing policyholders to switch. According to reporting by Aju Business Daily on the 27th, major nonlife insurers including Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance and DB Insurance will roll out fifth-generation plans on May 6. The launch had been set for May 1 but was adjusted in consideration of a holiday break. The fifth-generation product shifts benefits toward severe conditions. Unlike the fourth-generation plans, which broadly covered noncovered services, the new plans keep coverage for severe noncovered care but reduce limits and reimbursement rates for nonsevere noncovered services. Manual therapy and some new medical technologies are excluded, and the out-of-pocket share for nonsevere noncovered care rises to as much as 50%. Premiums are also expected to drop sharply, offering an alternative for people who do not frequently use noncovered medical services. For a man in his 40s enrolled in second-generation plans—where insurers have the largest number of policyholders—the average monthly premium as of the end of last year was about 45,000 won, compared with an estimated 17,000 won for the fifth-generation plan. Insurers expect the changes to curb excessive use of noncovered care and improve a loss-ratio structure that has been described as chronically unprofitable. Indemnity health insurance has posted high loss ratios for years, weighing on insurers’ profitability. According to the Korea Insurance Research Institute, the combined risk loss ratio for first- through fourth-generation plans reached 119.3% as of the third quarter of last year. Still, industry officials say broader adoption will depend on moving first- and second-generation policyholders into the new plans. Those older products can be maintained long term with coverage lasting to age 80 or 100 and typically offer broader benefits, raising concerns that customers will see little reason to switch. “First- and second-generation indemnity plans, unlike the third and fourth generations, are structured so policyholders can keep their existing coverage,” an industry official said. “If there are not sufficient incentives to encourage switching, the impact of the market overhaul could be limited.” Financial authorities plan to announce measures soon, including a contract buyback option to encourage conversions of first- and second-generation policies, as well as guidance related to optional riders. Financial Supervisory Service Gov. Lee Chan-jin said at a press briefing late last month that even after the fifth-generation plans launch, incentives would remain an issue for continued discussion. 2026-04-27 15:40:49
  • Korea Credit Union Federation to Launch Five-Day Vehicle Rotation for Staff to Cut Energy Use
    Korea Credit Union Federation to Launch Five-Day Vehicle Rotation for Staff to Cut Energy Use The Korea Credit Union Federation said on the 27th it will implement a five-day vehicle rotation system for cars used by employees at its headquarters. The federation said the move is intended to help reduce energy use as uncertainty in global energy markets grows, including due to instability in the Middle East, and to support the government’s push to strengthen energy demand management. Under the system, access to the headquarters and use of its parking lot will be restricted on designated days based on the last digit of a vehicle’s license plate number: Monday 1 and 6; Tuesday 2 and 7; Wednesday 3 and 8; Thursday 4 and 9; Friday 5 and 0. Vehicles carrying transportation-vulnerable passengers, including people with disabilities and pregnant women, as well as special-purpose work vehicles and environmentally friendly cars such as electric and hydrogen vehicles, will be exempt. The federation said it will continue to review operations to minimize inconvenience to employees and to improve energy-saving results as it stabilizes the program. * This article has been translated by AI. 2026-04-27 08:16:06
  • Financial Services Commission Chair Lee Eok-won Pushes QR Payment Links in India, Vietnam
    Financial Services Commission Chair Lee Eok-won Pushes QR Payment Links in India, Vietnam Lee Eok-won, chair of South Korea’s Financial Services Commission, carried out financial diplomacy in India and Vietnam from the 19th to the 25th, joining President Lee Jae-myung’s trip and promoting projects including linking QR-code payment networks, the commission said on the 26th. It was the first visit to India by an FSC chair, the commission said, as the two sides sought to upgrade financial cooperation. The FSC said Lee agreed with counterparts in both countries to pursue QR-code payment interoperability, which would allow people to pay in the other country using their domestic apps without exchanging currency. The service is expected to apply lower fees than overseas credit card payments, with an estimated savings of about 2 percentage points per transaction. Indonesia launched a QR-code payment linkage service on the 1st, and similar arrangements are under discussion with Singapore and Thailand, the FSC said. During the trip, Lee also agreed to broaden cooperation on financial hub development, capital market infrastructure and financing support for small and midsize businesses. The FSC and the Financial Supervisory Service signed a memorandum of understanding with India’s International Financial Services Centres Authority, or IFSCA, to support financial hub development and to build a cooperation framework between Seoul and Busan and India’s GIFT City. Through a Korea-India financial cooperation forum, the two sides detailed tasks including modernizing cross-border payment infrastructure, building capital market infrastructure and fostering financial hubs. The FSC said they also discussed expanding investment using India’s National Investment and Infrastructure Fund, or NIIF, and ways to cooperate with startups. In Vietnam, the FSC highlighted licensing progress for Korean financial firms and expanded infrastructure cooperation. IBK Industrial Bank of Korea obtained final approval to establish a local subsidiary in Vietnam for the first time in about nine years. In January, Korea Development Bank’s Hanoi branch received approval for the first time in seven years. The FSC said South Korea has emerged as the country with the most local subsidiaries in Vietnam and the second-largest number of foreign bank branches there. The Korea Asset Management Corp. and the Vietnam Asset Management Co. also specified the scope of cooperation under a 2019 MOU related to a platform for resolving nonperforming loans. The Korean agency is working on a project to share Korea’s system for handling bad loans with Vietnam, the FSC said.* This article has been translated by AI. 2026-04-26 15:05:59
  • Woori Bank Takes FX Risk Seminars to Regional Importers and Exporters
    Woori Bank Takes FX Risk Seminars to Regional Importers and Exporters Amid a Middle East-driven geopolitical crisis and heightened exchange-rate volatility, Woori Bank is expanding support for regional small and midsize import-export companies to help them manage foreign-exchange risk. Woori Bank said April 26 it is running a “visiting exchange-rate seminar” program for regional small and midsize exporters and importers. The program is designed to strengthen companies’ practical ability to manage currency risk in areas where access to specialized foreign-exchange and derivatives services is limited. The bank visits worksites first and provides tailored consulting without requiring companies to apply separately. Woori Bank held on-site seminars April 14 at Seongwoo Hitech and Taekwang Fujikin in the Busan area. On April 22, it continued the sessions with visits to MNC Solution, GPC and Woorim PTS in South Gyeongsang Province. Topics include Middle East risks and global commodity market trends, major currency movements and outlooks, and hedging strategies such as forward contracts and currency options, with company-specific response plans. Woori Bank plans to expand the seminars to major industrial hubs including Ulsan and Gwangyang, aiming to help regional companies maintain stable operations amid global uncertainty. “The exchange-rate risks felt by regional import-export companies are significant, but access to information to manage them is relatively limited,” a Woori Bank official said. “We are focusing on providing on-site, company-specific measures to respond to foreign-exchange risk.” 2026-04-26 11:30:18
  • Samsung Card Scales Back Appliance Installment Loans as Subscriptions Grow
    Samsung Card Scales Back Appliance Installment Loans as Subscriptions Grow Samsung Card’s installment financing for home appliances is shrinking quickly as buying patterns change and the burden of purchasing appliances has eased. With subscription services spreading, demand for loan-based appliance purchases is fading further. According to the Financial Supervisory Service’s financial statistics system, Samsung Card’s durable-goods installment financing assets totaled 361.3 billion won at the end of last year, down 1.3% from 365.9 billion won a year earlier. Among six card companies that handle durable-goods installment financing — Shinhan, Samsung, KB Kookmin, Hana, Lotte and Woori — Samsung Card’s total was the smallest. Durable-goods installment financing is a loan-type product in which a card company provides financing for high-priced purchases such as cars and appliances, and consumers repay it in installments over an extended period. Within that category, Samsung Card’s consumer appliance installment financing stood at just 12 million won. Samsung Card has operated appliance financing largely tied to affiliate Samsung Electronics. Its related loan balance reached 149.5 billion won in 2013 but has declined sharply since then. Installment financing assets for business-to-business items such as multifunction printers fell to 2.8 billion won from 4.9 billion won a year earlier, a drop of 42.4%. That figure has declined for three straight years since reaching 10 billion won in 2022. The decline is seen as structural, reflecting shifts in how consumers pay. In the past, long-term financing helped reduce the upfront burden for expensive items such as TVs and refrigerators. More recently, consumers have increasingly been able to cover purchases with lump-sum payments or short-term card installments, reducing demand for long-term loans. Shinhan Card’s appliance installment financing also disappeared after 2015. The spread of appliance subscription services is expected to accelerate the drop in loan-based purchases. Subscriptions reduce upfront costs and include regular care services, becoming a broader trend among appliance makers including Samsung Electronics and LG Electronics. As appliance-focused installment financing fades, Samsung Card has also taken a cautious approach to auto installment financing. Its auto installment financing assets totaled 358.4 billion won at the end of last year, just 3.6% of the combined total of the six card companies, which stood at 9.8302 trillion won. Instead, Samsung Card has pursued exclusive partnerships with major imported car brands including Tesla, BYD, Polestar and BMW (through some dealers), focusing less on loan-type products and more on payment-based revenue, its core business. A Samsung Card official said the company is running its auto finance strategy with an emphasis on profitability and how it connects to the credit card business. 2026-04-23 16:27:09
  • Kyobo heir Shin Joong-hyun moves to SBI Savings Bank, faces leadership test
    Kyobo heir Shin Joong-hyun moves to SBI Savings Bank, faces leadership test Kyobo Life Insurance’s third-generation owner family member, Shin Joong-hyun, has moved from Kyobo Lifeplanet to SBI Savings Bank, putting his management credentials under closer scrutiny as the group pursues a shift toward a financial holding company structure. According to the financial industry on Wednesday, Kyobo Lifeplanet has posted a cumulative net loss of 219.2 billion won from its 2013 launch through last year, after piling up annual losses of more than 10 billion won. Kyobo Life Chairman Shin Chang-jae in 2020 gave his second son, Shin Joong-hyun, the key task of leading Lifeplanet’s digital business. While the unit’s weak results cannot be attributed solely to Shin, critics note that Lifeplanet sells policies only through online channels without agents, making digital strategy central to performance. From product planning and marketing to conversion-rate management, user experience design and data-driven risk management, the business runs on a digital platform, leaving the executive overseeing it difficult to separate from accountability. Growth indicators also weakened. Lifeplanet’s new policy sales totaled 1.4086 trillion won last year, down 9.7% from 1.5606 trillion won a year earlier. Among 22 life insurers, only Chubb Life Insurance Korea, which focuses on dental coverage, recorded a smaller amount at 312.9 billion won. As of the end of last year, Lifeplanet’s cumulative in-force policies stood at 7.7347 trillion won, just 0.3% of the combined total of 2,308 trillion won for the 22 companies. Against that backdrop, Kyobo Life has faced criticism for injecting billions of won into what some described as a bottomless pit. Industry watchers say early losses can be unavoidable for digital insurance, but more than a decade of accumulated losses and a recent trend of widening deficits are hard to dismiss as routine growing pains. An official in the life insurance industry said, “Internet insurance can be seen as an investment for the future, but with losses expanding, management will need to make important decisions.” Shin moved to SBI Savings Bank without closing out a turnaround at Lifeplanet. He will remain at Lifeplanet as an adviser and lead the synergy team under a newly created management strategy division at SBI Savings Bank. A plan to appoint him as one of the bank’s co-CEOs was reportedly considered, but he ultimately took a team leader-level role. SBI Savings Bank is seen as a key pillar in Kyobo Life’s strategy to broaden its portfolio and transition to a financial holding company, combining lending-based businesses with digital finance capabilities to complement insurance-heavy earnings. Some in the industry interpret Shin’s placement in another major post as also reflecting succession considerations. A business group official said, “Kyobo Life will use SBI Savings Bank as a foothold to lay out its plan for a transition to a financial holding company,” adding that moving an owner’s child who did not deliver results at a previous affiliate to a core unit appears to go beyond management training and take succession into account." 2026-04-23 14:04:03
  • Toss, Korea Mint Sign MOU to Build Blockchain-Based Payment Infrastructure
    Toss, Korea Mint Sign MOU to Build Blockchain-Based Payment Infrastructure Viva Republica, operator of the Toss app, said April 23 it signed a strategic memorandum of understanding with the Korea Minting and Security Printing Corp. to build blockchain-based payment infrastructure. Under the agreement, the two sides will work to improve convenience in digital payments and jointly pursue the introduction and linkage of blockchain-based payment systems. They plan to connect their payment infrastructure to improve users’ payment experience and review the feasibility of applying new payment methods. The partnership links private fintech services with public payment infrastructure. Toss has provided services including simple money transfers, credit checks and currency exchange, backed by 30 million cumulative users as of July last year. The Korea Mint has operated public payment platforms, including local currency programs for 83 local governments and the digital Onnuri gift certificate project. Over the mid- to long term, they also plan joint pilot projects using token-based payment instruments such as deposit tokens and stablecoins, to test real-world applicability and expand into more personalized payment services. A Toss official said the deal will help advance payment infrastructure while assessing new payment options, adding the company will continue cooperation to create a simpler, more scalable payment experience for users.* This article has been translated by AI. 2026-04-23 08:41:39
  • Korea Auto Insurance Loss Ratio Rises to 85.9% in Q1, Up 3.4 Points
    Korea Auto Insurance Loss Ratio Rises to 85.9% in Q1, Up 3.4 Points Major South Korean nonlife insurers posted a weaker auto insurance loss ratio in the first quarter than a year earlier, industry data showed. According to the nonlife insurance industry on Tuesday, the simple average auto insurance loss ratio for four insurers — Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance and KB Insurance — came to 85.9% in the first quarter, up 3.4 percentage points from 82.5% a year earlier. The March loss ratio was 81.5%, up 4.0 percentage points from the same month a year earlier. The ratio typically dips slightly in March, but this year it stayed above the break-even level of 80%. An industry official said premiums rose slightly early this year for the first time in five years, but the impact of four straight years of premium cuts was larger. The official added that the outlook is “somewhat negative,” citing expected increases in traffic and accidents as temperatures rise and more people travel after April, along with higher parts and repair costs driven by inflation.* This article has been translated by AI. 2026-04-22 10:42:06