GA Association Holds Sales Commission Briefing... President Yongtae Kim: "TF to Operate Through Year-End"

Strengthening Internal Controls and Sharing of Key Issues Such as the Presumed Employee Status System

The Korea General Insurance Agents Association (GA Association) announced on March 16 that it held a “Sales Commission System Briefing and Q1 GA Policy Forum” at Kyowon Challenge Hall in Jongno-gu, Seoul.

Kim Yongtae, President of the Korea General Agency (GA) Association. GA Association

During the first part of the briefing, the head of the Insurance System Team at the Financial Supervisory Service attended to explain the purpose of the amendment to the Insurance Business Supervision Regulations. He also urged the field to refrain from excessive incentives and aggressive recruitment of planners before the implementation of the revised commission structure.

The association explained the details of the revision in the following order: ▲Key points of the commission system revision ▲FAQ explanation ▲Q&A session.

The briefing session focused on the ban on arbitrage transactions and core points of the first FAQ. Arbitrage transactions refer to cases where the commission received by a planner upon cancellation of an insurance contract exceeds the premiums paid by the customer. In such cases, appropriate measures such as clawbacks are necessary.

The association also provided an overview of the overall direction and key points regarding the following issues to be implemented in the future: ▲Application of the 1,200% rule to GA planners ▲Strengthened comparison and explanation requirements for large GAs ▲Commission installment payment system.

The 1,200% rule is a regulation that limits the sales commission paid in the first year of recruiting a planner to no more than 12 times the monthly insurance premium. Starting in July, GA planners will also be subject to this rule.

In the second part of the forum, participants discussed “New Growth Strategies for GAs During the Commission System Revision Period” and “Three Major Issues Facing the GA Sector,” as well as corresponding responses and new growth strategies.

In particular, recent legislative developments on the “One Big Beautiful Bill Act” and the “Presumed Employee Status System”—core issues in the legislative package—were also addressed.

The legislative package is a system that regulates approximately 8.7 million freelancers, special employment workers, and platform workers.

The association shared the impact of the system on the field, as it is directly related to whether planners are recognized as employees.

Additionally, the association outlined response strategies including ▲participation in the Korea Employers Federation response task force (TF) and discussion session scheduled for the 27th ▲active engagement in collecting industry opinions and responding to the legislative process ▲establishing legal advisory and response strategies through large law firms.

Yongtae Kim, President of the Korea General Insurance Agents Association, said, “For the revised sales commission system to be stably established and solidified in the field, it is crucial to share accurate information and ensure the industry as a whole is prepared in terms of human, material, and technological systems. The association will operate the ‘GA Sector Commission TF’ through the end of the year to ensure that the sector is fully prepared for the implementation of the 1,200% rule and the commission installment payment system.”

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