[2025 Audit] FSS Governor Lee Chanjin: "Samsung Life Insurance Accounting to Align with International Standards... Internal Coordination Completed"

Political Affairs Committee Audit Held on the 21st
Governor Lee Maintains Stance of No Exceptions

Lee Chanjin, Governor of the Financial Supervisory Service, stated at the National Assembly Political Affairs Committee audit held in Yeouido, Seoul, on the 21st that the agency has internally coordinated its position to align the accounting for policyholder equity adjustments related to Samsung Life Insurance's holdings of Samsung Electronics shares with international accounting standards.

Lee Chanjin, Governor of the Financial Supervisory Service, is attending the 2025 National Assembly Political Affairs Committee audit held on the 21st at the National Assembly, responding to lawmakers' questions. Photo by Yonhap News

On this day, in response to criticism from Kim Namgeun, a lawmaker from the Democratic Party of Korea, who pointed out that "the Financial Supervisory Service has not taken a clear stance on the accounting irregularities at Samsung Life Insurance," Governor Lee replied, "Our internal consensus is that issues related to irregular accounting must be addressed in accordance with international accounting standards."

It has become increasingly likely that the agency will move to halt the policyholder equity adjustment process at Samsung Life Insurance. In the 1980s and 1990s, Samsung Life Insurance used funds paid by policyholders for participating insurance products to acquire an 8.51% stake in Samsung Electronics.

Dividends that should have been distributed to policyholders were not recorded as 'insurance liabilities' on the financial statements, but instead classified under a separate liability item called 'policyholder equity adjustment.' At the end of 2022, ahead of the introduction of the new insurance accounting standard (IFRS 17), the Financial Supervisory Service exceptionally allowed this method of classification.

However, Governor Lee has consistently maintained that accounting practices should be normalized in accordance with international accounting standards.

On September 1, following a meeting with chief executive officers in the insurance industry, he told reporters, "Rather than delaying or temporarily patching up the issue regarding Samsung Life Insurance, it would be preferable to take this opportunity to fundamentally resolve it."

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