Heungkuk Life Insurance Deducts Pen Payment from Agent Salaries

[Asia Economy Reporter Changhwan Lee] It has been alleged that Heungkuk Life Insurance exerted excessive pressure to raise funds by deducting the cost of promotional pens and even dinner expenses paid to insurance planners from their salaries.

On the 11th, during the National Assembly's Financial Supervisory Service audit by the National Assembly's Political Affairs Committee, People Power Party lawmaker Choi Seung-jae pointed out that Heungkuk Life Insurance distributed promotional pens to its insurance planners and later deducted the cost of the pens from their salaries.

According to internal documents obtained by Lawmaker Choi's office, Heungkuk Life Insurance made its insurance planners attend company dinners and then divided the meal costs among the attendees, reflecting the amounts in their salaries. There were also cases where the costs of promotional rubber gloves and sanitary vinyl were included in the salary deductions.

Lawmaker Choi claimed that Heungkuk Life Insurance was engaging in unfair practices toward its planners because it needed cash to establish a subsidiary for a corporate insurance agency (GA).

Additionally, Lawmaker Choi mentioned that Lee Hojin, chairman of the Taekwang Group and major shareholder of Heungkuk Life Insurance, was indicted in 2011 on charges of breach of trust and embezzlement and is currently on trial. He also noted that Chairman Lee received dividends totaling 26.6 billion KRW from affiliates over the past five years.

Lawmaker Choi stated, "The abuse and tyranny of the insurance company toward its insurance planners at Heungkuk Life Insurance have gone too far," adding, "Excessive actions solely pursuing profit could lead to consumer harm, so a thorough investigation by financial authorities is necessary."

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