The nonlife insurance sector has reportedly wrapped up talks on the cost-sharing standards for contributions to the New Leap Fund.
According to the financial industry on Jan. 29, the nonlife sector agreed that for 40% of the total contributions of 20 billion won—8 billion won—companies holding the relevant bonds will share the burden in proportion to their bond holdings. For the remaining 60%—12 billion won—all member companies will share the burden in proportion to the association fee cost-sharing standard.
Accordingly, Seoul Guarantee Insurance Company, which holds 90% of the nonlife sector's relevant bonds, is expected to shoulder about 8.2 billion won (41%) in total, combining 7.2 billion won—about 90% of the 8 billion won—and 1 billion won based on the association fee cost-sharing standard.
Since the launch of the New Leap Fund in Oct. last year, the nonlife insurance sector, led by the General Insurance Association of Korea, had discussed the 20 billion won in contributions, but the member companies' agreement was reportedly delayed due to differences over Seoul Guarantee Insurance Company's share of the relevant bonds.