Park Yong-jin Sends Letter to All National Assembly Judiciary Committee Members... "Please Help Pass the Samsung Life Insurance Act in the Regular Session"

Park Yong-jin, Democratic Party of Korea lawmaker. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Naju-seok] On the 8th, Park Yong-jin, a member of the Democratic Party of Korea, sent a personal letter to all members of the National Assembly's Political Affairs Committee, asking for help in amending the Insurance Business Act, known as the "Samsung Life Act." He requested, "Please help ensure it passes during this regular session of the National Assembly."

Park announced through a press release that he had sent the personal letter to all members of the Political Affairs Committee the day before. In the letter, he explained, "Our country's Insurance Business Act has institutional measures to prevent insurance companies' assets from being concentrated in specific investment targets, which would transfer risks to customers or cause insurance companies to become dependent on the interests of the investment targets. In the insurance sector, the acquisition (ownership) of issued shares by major shareholders cannot exceed 60% of equity capital or 3% of total assets." He added, "The method for calculating asset management ratios, which is the premise of asset management regulations, is stipulated in the Insurance Business Supervision Regulations, an administrative rule rather than the Insurance Business Act, to be based on acquisition cost rather than market value. The only company benefiting from this regulation is Samsung Life."

He stated, "For as long as six and a half years, all former Financial Services Commission chairpersons have acknowledged that there is a problem with the Insurance Business Supervision Regulations, and officially, four times, they have ordered financial companies to seek necessary measures for gradual and voluntary improvement before legal amendments. While banks, savings banks, and financial investment businesses all use market value as the standard, only the insurance sector uses acquisition cost as the basis. Now is the time to directly amend the Insurance Business Act to secure the soundness and fairness of the financial market."

Park emphasized that Samsung Group's governance structure benefits from the current Insurance Business Act supervision regulations, saying, "The reason I am on the Political Affairs Committee is precisely to correct this illegality."

He mentioned that with the introduction of IFRS17, which evaluates liabilities at market value, insurance companies' equity capital is expected to decrease, stating, "To comply with the 60% equity capital standard, Samsung Life may have no choice but to effectively sell Samsung affiliate stocks, separate from the amendment to the Samsung Life Act that I proposed."

Park explained that if the amendment passes the plenary session, the effects would include "securing the soundness and fairness of asset management in the insurance sector," and "if Samsung Life and others sell Samsung Electronics shares, the benefits could also return to Samsung Life's non-dividend policyholders and shareholders."

He added, "I have proposed this twice during the 20th and 21st National Assemblies, and during this National Assembly audit, the Financial Services Commission's official position was clearly confirmed as Samsung Life's gradual and voluntary resolution. I earnestly ask my fellow lawmakers to ensure that the amendment to the Insurance Business Act passes during this regular session of the National Assembly."

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