Lee Chan-jin, head of the Financial Supervisory Service, said on the 1st regarding the controversy over 'Samsung Life Insurance's accounting irregularities,' "I believe it is desirable to fundamentally resolve the issue this time rather than postponing or temporarily patching it up."
After a meeting with the chief executive officers of 16 major insurance companies held at the Seoul Gwanghwamun Life Insurance Education and Culture Center, Lee noted, "The FSS is fully aware of the importance of the issue regarding Samsung Life Insurance's accounting irregularities." He evaluated, "The issue of accounting treatment for the contract holder's equity adjustments at Samsung Life Insurance is a situation complicated by various factors, including industry practices, past guidelines, and current accounting standards."
Lee also emphasized regarding consumer protection measures, "I will examine the internal control system related to product design in conjunction with the accountability structure moving forward," and added, "If internal controls are insufficient or consumer harm occurs as a result, I may inevitably hold the top executives accountable as well."
Earlier, during the opening remarks at the meeting, Lee remarked, "While purchasing insurance is easy, the perception that receiving payouts is difficult has not significantly changed," urging for consumer protection. He mentioned short-term whole life insurance that returns 120% to 130% of the premiums paid if the contract is canceled early as an example of poorly designed insurance products.
Lee stated that while the basic direction to extend the final observation maturity to 30 years would be maintained, plans would be adjusted for the timing of the extension. He also noted that the basic capital adequacy ratio (K-ICS) regulation would be reconsidered to accommodate insurance companies that find it difficult to raise capital in a short period.