Insurance Industry, from Associations to Outside Directors, Welcoming Former Politicians and Bureaucrats

Samsung Life Insurance to Appoint Former Lawmaker Jo Baesuk as Outside Director
Hanwha to Newly Appoint Former Statistics Korea Chief and KODIT Vice President

Former Democratic Peace Party Leader Jo Bae-sook
[Photo by Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Insurance companies are appointing a large number of former politicians and bureaucrats as outside directors to enhance the transparency and expertise of their boards. Since the Life Insurance Association president and the Insurance Training Institute president were both filled by former politicians, the entry of political figures into the insurance industry has become noticeably active.

According to the insurance industry on the 26th, Samsung Life Insurance plans to appoint former National Assembly member Jo Bae-sook and former Vice Minister of Health and Welfare Kang Yoon-gu as outside directors at the regular shareholders' meeting scheduled for the 18th of next month.

Former Assembly member Jo will newly join the board following former Vice Minister of Justice Lee Chang-jae, while former Vice Minister Kang will be reappointed. Currently, Samsung Life’s outside directors include former Vice Minister of Strategy and Finance Heo Kyung-wook and former Insurance Society president Lee Geun-chang.

Jo, born in 1956, graduated from Seoul National University’s Department of Law, passed the 22nd Judicial Examination, served as a prosecutor at the Seoul District Prosecutors' Office and a judge at the Seoul High Court, then worked as a lawyer before serving as a member of the 16th, 17th, 18th, and 20th National Assemblies. During the 20th National Assembly, he also served as the leader and floor leader of the Party for Democracy and Peace.

Within the industry, there is an interpretation that Jo will serve as a bridge for communication between the board and political circles ahead of the pending issue of revising the Insurance Business Act, commonly referred to as the “Samsung Life Act.”

The amendment to the Insurance Business Act, proposed by Democratic Party lawmakers Park Yong-jin and Lee Yong-woo, includes a provision that prohibits insurance companies from holding more than 3% of total assets in affiliate stocks. If the amendment passes, Samsung Life will be forced to dispose of its Samsung Electronics shares worth approximately 20 trillion won.

At the Samsung Fire & Marine Insurance shareholders' meeting held on the same day, former Public Procurement Service head Kim Sung-jin is expected to be reappointed.

Kim, who passed the 19th Administrative Examination, served as the International Finance Counselor and Director of Economic Cooperation at the Ministry of Finance and Economy (now Ministry of Economy and Finance), as well as International Business Policy Officer (Vice Minister level), and was head of the Public Procurement Service during the Roh Moo-hyun administration. He has also worked as an advisor and invited member at the Korea Capital Market Institute and as an adjunct professor at Soongsil University.

The chairman of Samsung Fire & Marine Insurance’s board is former National Assembly member Park Dae-dong, who served in the 19th National Assembly. Park ran as a candidate for the United Future Party in last April’s general election but was defeated and has maintained his position as an outside director.

Former Assemblyman Park Dae-dong

Hanwha Life Insurance will hold its shareholders' meeting on the 15th of next month and plans to reappoint former KB Financial Group chairman Hwang Young-ki as an outside director, while newly appointing former Statistics Korea commissioner Lee In-sil and former vice president of the Korea Deposit Insurance Corporation Cho Hyun-chul.

This change follows the expiration of terms for former Minister of Justice Kim Kyung-han and former president of the Korea Resolution and Collection Corporation Park Seung-hee, marking a shift from legal professionals to directors with academic and administrative bureaucratic experience.

The market also analyzes that the number of former politicians joining the insurance industry has significantly increased since the inauguration of Life Insurance Association president Jung Hee-soo and Insurance Training Institute president Min Byung-doo this year.

This is interpreted as a response to the increasing legislative issues related to insurance, such as the introduction of simplified claims for indemnity health insurance, amendments to the Special Act on Insurance Fraud Prevention, and the Financial Consumer Protection Act. However, criticism has also been raised that individuals lacking insurance-related expertise have occupied key positions.

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