'Mutual Growth Finance' Insurers Take Turns... Hanwha Life Launches Savings Insurance with 5% Interest Rate

Lee Bok-hyun, Financial Supervisory Service Chief, Visits Hanwha Life Insurance
Responds to Hanwha Life's High-Interest Savings Insurance and Support Measures for Vulnerable Groups

Following banks and card companies, insurance companies have also proposed win-win measures. Hanwha Life took the lead by presenting high-interest savings insurance for young adults and newlyweds, as well as support programs for vulnerable youth and children.

On the 13th, Lee Bok-hyun, Governor of the Financial Supervisory Service, and Yeo Seung-joo, CEO of Hanwha Life, visited Hanwha Life’s headquarters in Yeouido, Yeongdeungpo-gu, Seoul, to hold the 'Inclusive Finance and Warm Companionship Win-Win Friends Agreement Ceremony' and announced these initiatives.

The first win-win financial plan prepared by Hanwha Life is the ‘2030 Lump-Sum Savings Stepping Stone Insurance (tentative name).’ This is a 5-year maturity savings insurance targeted at individuals aged 20 to 39 with household income at or below 200% of the median income. It offers a guaranteed basic interest rate of 5% over five years, with monthly payments ranging from 100,000 to 500,000 KRW. In the event of marriage or childbirth during the subscription period, a certain percentage of the paid premiums will be given as a bonus. The product is structured to guarantee the principal (with a refund rate of 100% or more) starting one month after enrollment.

Additional payments and payment deferrals are also possible. If there is extra money during the payment period, additional payments up to 50% of the monthly premium can be made to aim for higher interest earnings. Conversely, if maintaining the contract becomes difficult, payments can be temporarily deferred. Hanwha Life explained, "This win-win product combines the advantages of the bank sector’s ‘Youth Leap Account’ with the unique strengths of insurance to maximize customer benefits."

Alongside this, the 'Win-Win Friends Project' for vulnerable children and adolescents was also announced. In collaboration with partner organizations such as World Vision and the Korea Association of Social Welfare Centers, plans include ▲supporting the independence of family caregiving youth (young carers), ▲providing financial education to low-income youth (including single-parent families), ▲supporting cultural experiences for children from culturally marginalized groups, and ▲supporting health promotion programs for children and adolescents in protective facilities. To this end, the Financial Supervisory Service and Hanwha Life collected approximately 200 million KRW in sponsorship funds and delivered them to World Vision.

These financial support measures are interpreted as a result of regulatory pressure for coexistence. Banks, card companies, and insurance companies have successively presented win-win financial plans. Earlier, on the 29th of last month, Governor Lee attended a sponsorship fund delivery ceremony and a small business owners’ meeting at the Good Neighbors Hall in Yeongdeungpo-gu, Seoul, together with Lim Jong-ryong, Chairman of Woori Financial Group, and Park Wan-sik, President of Woori Card. On the same day, Woori Card announced a support plan worth 220 billion KRW targeting small card merchants and vulnerable groups. In February and March, Governor Lee also visited the four major commercial banks?KB Kookmin, Shinhan, Woori, and Hana Banks?in succession, and the banks poured out financial support worth 800 billion KRW, including loan interest rate reductions.

At the event, Governor Lee emphasized, "The financial industry cannot grow in isolation from the people and the national economy, so especially in difficult times, financial companies should consider ways to coexist and overcome crises together rather than looking out only for themselves. If we support the national economy through the development of good win-win financial products, support for vulnerable groups, and efforts to supply funds to the people and industries, we will reap greater fruits of development in the future."

Financial Supervisory Service Governor Lee Bok-hyun is explaining the purpose at the Win-Win Finance Agreement Ceremony held on the 13th at the Hanwha Life headquarters in Yeouido, Yeongdeungpo-gu, Seoul. (Photo by Financial Supervisory Service)

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