The Financial Services Commission said on the 28th that it held a regular meeting and, after reviewing the management improvement plan submitted by Lotte Non-Life Insurance on the 2nd, decided to reject it, judging that the plan lacked specificity, feasibility, and supporting grounds.
The Financial Services Commission (FSC) in November last year judged Lotte Non-Life Insurance's capital soundness to be weak and issued a management improvement recommendation, the lowest level of prompt corrective action. Accordingly, Lotte Non-Life Insurance submitted a management improvement plan that included cutting business expenses, disposing of assets, and improving personnel and organizational operations, but the Financial Services Commission (FSC) found it lacked specificity.
The Financial Services Commission (FSC) plans to issue a management improvement requirement, one step higher than a management improvement recommendation, under insurance-related laws and regulations. Through a management improvement requirement, the Financial Services Commission (FSC) can demand measures such as closing, consolidating, and restricting the opening of branches; replacing executives; and partially suspending insurance business operations.
The Financial Services Commission (FSC) plans to receive and review a resubmitted management improvement plan from Lotte Non-Life Insurance. An official at the Financial Services Commission (FSC) said, "We plan to review the necessary follow-up measures in accordance with laws and principles."