Kim So-young: "Korean Insurers Overseas, Support Needed for Global Insurers' Entry into Korea"

‘Seminar on Strengthening the Global Competitiveness of the Insurance Industry’

Kim So-young, Vice Chairman of the Financial Services Commission, is delivering opening remarks at the Financial Industry Globalization Task Force meeting held on the 13th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Yoon Dong-joo doso7@

Kim So-young, Vice Chairman of the Financial Services Commission, stated on the 3rd that it is necessary to support domestic insurance companies' overseas market expansion (Outbound) and the entry of excellent global insurance companies into the domestic market (Inbound) to globalize Korea's insurance industry.

Vice Chairman Kim made these remarks while attending the 'Seminar on Strengthening the Global Competitiveness of the Insurance Industry' held at the Life Insurance Education and Culture Center in Jongno-gu, Seoul, on the morning of the same day, saying, "The social and economic environmental changes surrounding the insurance industry demand more fundamental innovation."

Vice Chairman Kim said, "As of 2021, the insurance premium relative to the Gross Domestic Product (GDP) in our insurance industry is at a high level of 10.9%, compared to advanced markets, and the per capita insurance premium reaches $3,735, close to that of advanced markets," adding, "In a market with increased competition and maturity, we now need to find growth engines in new products and markets rather than through cutthroat competition."

He also emphasized, "The overall digital transformation trend in the industry is affecting the insurance industry as well, and the increase in low birthrate, aging population, and single-person households is progressing more rapidly than expected," adding, "Insurance companies must respond agilely so that insurance products not only prepare for a stable old age but also accommodate changes in new lifestyles."

At the seminar, presentations and discussions by industry experts on the globalization of the insurance industry continued.

Jang Kwon-young, Partner at Boston Consulting Group, said, "Leading global insurance companies generate a significant portion of their revenue overseas," adding, "To support the expansion of overseas investment and mergers and acquisitions (M&A) by the domestic insurance industry, it is necessary to relax subsidiary business restrictions, expand financing methods, and strengthen cooperation between domestic and overseas financial authorities."

Oh Byung-guk, Director of the Global Insurance Center at the Korea Insurance Research Institute, said, "Since the 1980s, globalization has progressed to some extent due to the opening of the insurance market, but recently, with the withdrawal of advanced global companies such as Prudential and Allianz, the domestic environment is challenging," adding, "To support the entry of excellent global insurance companies into the domestic market, improvements in the regulatory system, regular dialogue, and strengthened cooperation with authorities in advanced markets are necessary."

Additionally, companies such as Hanwha Life and Hyundai Marine & Fire Insurance introduced their overseas expansion cases.

The Financial Services Commission plans to prepare policy support measures for the globalization of the financial sector across all industries based on the discussions at the seminar. Vice Chairman Kim stated, "If the development of the insurance industry acts as a new growth engine for the economy, it can play a significant role not only in the insurance industry but also in the growth of the Korean economy," adding, "We will do our best to prepare policies for the globalization of the insurance industry."

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