MG Sonbo, Former Hanwha Sonbo President Park Yoon-sik Appointed as New CEO

[Asia Economy Reporter Ki Ha-young] MG Insurance has nominated Park Yoon-sik, former president of Hanwha General Insurance, as its next CEO.

According to the insurance industry on the 30th, MG Insurance plans to hold a shareholders' meeting and a board meeting on the 31st to elect Park as the new CEO.

Park was recruited as Executive Vice President of Hanwha General Insurance in March 2013 and was appointed CEO within three months. Immediately after taking office as CEO of Hanwha General Insurance, he formed an Innovation Committee, reorganized the company, and shifted the business structure to focus on protection-type insurance, successfully turning a profit in 2014. Recognized for these achievements, he was promoted from vice president to president and, despite being an external hire, succeeded in serving three consecutive terms. Park tendered his resignation at the end of last year when Hanwha General Insurance returned to a deficit.

With Park’s nomination, the industry is paying attention to the possibility of MG Insurance’s management normalization, as he has a track record of leading Hanwha General Insurance to profitability.

MG Insurance’s Risk-Based Capital (RBC) ratio fell below 100% in 2018, prompting financial authorities to issue a management improvement recommendation in May of that year. In October, a higher-level management improvement request was issued, and by the end of June last year, MG Insurance received a third-stage prompt corrective action, a management improvement order. Subsequently, in November last year, MG Insurance conditionally received approval from the Financial Services Commission for its management improvement plan and submitted documents for the major shareholder suitability review to change its asset manager (GP) from Jabez Partners to JC Partners to raise capital.

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