The Korea Deposit Insurance Corporation (KDIC) and the MG Non-Life Insurance union have confirmed that they have agreed to pay employees who are not transitioned as bridge insurance personnel an additional salary for six months. Instead of disbursing the job support fund requested by the MG Non-Life Insurance union, they decided to help with reemployment activities by paying salaries.
According to the insurance industry on the 14th, the KDIC and the MG Non-Life Insurance union finalized their agreement for 281 MG Non-Life Insurance employees to be transitioned as bridge personnel. About 200 employees who are not transitioned will receive salaries from September to February of next year. MG Non-Life Insurance will be liquidated by December, and employment contracts for remaining employees will also be terminated. Employees not transitioned will be tasked with managing remaining assets at MG Non-Life Insurance. This means an additional two months of salaries will be paid to support employment activities even after MG Non-Life Insurance is liquidated. The bridge insurance company, 'Yebyeol Non-Life Insurance,' is planned to launch in September.
Originally, the MG Non-Life Insurance union requested the KDIC to provide a certain level of job support funds to employees who were not transitioned. However, it has been reported that the KDIC expressed concerns that it would be difficult to provide a large amount of job support funds at once since MG Non-Life Insurance is liquidating without a buyer. Instead, the KDIC proposed a plan to pay salaries to employees not transitioned, which ultimately led to the agreement.
A KDIC official explained, 'The agreement was reached as we formed a consensus with the union on the need for the prompt sale of MG Non-Life Insurance.'
In May, financial authorities announced that they would proceed with the transfer of MG Non-Life Insurance contracts to the five major insurance companies (Samsung Fire & Marine Insurance, Meritz Fire & Marine Insurance, DB Insurance, KB Non-Life Insurance, Hyundai Marine & Fire Insurance) through a bridge insurance company. This action was taken because the financially troubled MG Non-Life Insurance could not maintain existing contracts normally. Financial authorities are also pursuing the resale of MG Non-Life Insurance alongside the transfer of contracts.