The number of external directors recruited from the Financial Supervisory Service is increasing among major insurance companies. This is interpreted as an effort to recruit individuals from financial authorities in preparation for the introduction of the accountability structure in July.
According to the financial sector on the 24th, Hanwha General Insurance recently appointed former Financial Supervisory Service (FSS) Vice Chairman Yoo Kwang-yeol as an external director. Yoo has held positions as the Director of the International Financial Cooperation Bureau at the Ministry of Economy and Finance, Director of the Financial Services Commission (FSC) Financial Intelligence Unit, and CEO of Seoul Guarantee Insurance.
Hyundai Marine & Fire Insurance also newly appointed lawyer Do Hyo-jeong from Yulchon Law Firm as an audit committee member. Lawyer Do, a graduate of the 50th Judicial Examination, worked at the FSS for about ten years from 2013. During her tenure at the FSS, she performed insurance supervisory duties across various departments including the Dispute Resolution Bureau, Corporate Disclosure Division, Insurance Compliance Inspection Division, General Insurance Inspection Division, and Insurance Supervision Division.
DB Insurance reappointed former Financial Supervisory Commission (the predecessor of the FSC and FSS) Vice Chairman Yoon Yong-ro as an external director while also appointing him as a new audit committee member. Yoon previously served in the Ministry of Economy and Finance and as Chairperson of the Securities and Futures Commission. Mirae Asset Life Insurance also reappointed lawyer Kim Hak-ja as an external director. Lawyer Kim is a former member of the FSS Audit Advisory Committee.
Insurance companies with total assets exceeding 5 trillion won must submit their accountability structures to the financial authorities by this July. Known as the 'Severe Disaster Punishment Act for the Financial Sector,' the accountability structure allocates responsibilities to financial company executives based on their roles and ensures that the executive responsible for related duties will be held accountable in the event of a financial accident. This system was established to strengthen the overall internal control management of financial companies by pre-defining the scope and content of internal controls for which financial company executives are responsible.
The insurance companies that recruited individuals from the FSS this time are all subject to the introduction of the accountability structure. Therefore, they are aiming to respond in advance to the accountability structure by recruiting from the FSS. The banking sector, which also saw the introduction of the accountability structure this year, has actively pursued the recruitment of external directors from the FSS.
A source in the financial sector noted, 'The insurance industry is the sector where recruitment from financial authorities is most active,' adding, 'If we include cases where external director appointments are not disclosed, the recruitment from the FSS would be even higher.'