FSS to Resume Samsung Life Disciplinary Hearing on 3rd... Severe Sanctions Could Disrupt New Business

Last Month, Deliberations Continued Late into the Night but No Conclusion Reached
Will the Controversy Over Non-Payment of Cancer Insurance Hospitalization Fees at Long-Term Care Hospitals Finally End?

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] The Financial Supervisory Service (FSS) will resume the disciplinary committee meeting related to the comprehensive inspection of Samsung Life Insurance on the 3rd.

The FSS held the 28th disciplinary committee meeting on the 26th of last month and deliberated on the results of the comprehensive inspection of Samsung Life Insurance late into the night but postponed the conclusion.

The main agenda of the disciplinary committee includes non-payment of cancer hospitalization benefits and violations of major shareholder transaction restrictions. During last year's comprehensive inspection of Samsung Life Insurance, the FSS uncovered cases where hospitalization fees for cancer patients in nursing hospitals were not paid.

Samsung Life Insurance argued that hospitalization in nursing hospitals for cancer patients was difficult to consider as direct cancer treatment and thus did not pay insurance benefits. However, cancer patients countered by claiming that receiving chemotherapy after hospitalization in nursing hospitals also counts as direct treatment.

The FSS recommended payment of insurance benefits, stating that three types?hospitalization of terminal cancer patients, hospitalization during chemotherapy, and hospitalization immediately after malignant tumor resection?can be regarded as direct treatment acts, but Samsung Life Insurance did not accept all the recommendations.

Yoon Seok-heon, Governor of the Financial Supervisory Service, is attending the '10th Real Estate Market Inspection Meeting of Related Ministers' held at the Government Seoul Office in Jongno-gu, Seoul on the 19th. Photo by Kang Jin-hyung aymsdream@

The FSS had previously notified Samsung Life Insurance in advance that a severe disciplinary action of 'institutional warning' was expected.

However, last month, the Supreme Court ruled to dismiss the cancer insurance claim lawsuit without trial, siding with Samsung Life Insurance, drawing attention from the insurance industry on what conclusion the disciplinary committee will reach.

The financial authorities maintain that the Supreme Court's judgment is separate from the disciplinary committee's decision. FSS Governor Yoon Seok-heon also drew a clear line at the National Assembly's Political Affairs Committee, stating, "I do not think the Supreme Court ruling will have an impact."

If Samsung Life Insurance receives disciplinary action of institutional warning or higher at the disciplinary committee, it will be unable to enter new businesses requiring financial authorities' approval for one year. Approval for major shareholder changes will also be restricted. This could make it difficult for Samsung Life Insurance to enter new businesses such as healthcare and MyData that it is currently pursuing. Additionally, its subsidiary Samsung Card may face suspension of its MyData business.

This content was produced with the assistance of AI translation services.