The Financial Services Commission approved a measure to demand management improvement for Lotte Non-Life Insurance at a regular meeting on the 4th. It is an upgraded measure from the previous recommendation to improve management.
The Financial Services Commission (FSC) rejected the management improvement plan submitted by Lotte Non-Life Insurance, which had received a recommendation to improve management on Nov. 5 last year. With the management improvement plan rejected, the prompt corrective action was upgraded from a recommendation to a demand for management improvement based on relevant laws and regulations. The Financial Services Commission (FSC) also demanded that Lotte Non-Life Insurance supplement and submit a comprehensive management improvement plan (covering quantitative and non-quantitative items) to enhance capital adequacy.
Under this demand for management improvement, Lotte Non-Life Insurance must prepare and submit to the Financial Supervisory Service within the next two months a management improvement plan to enhance capital adequacy in the management status assessment (comprehensive quantitative and non-quantitative items), including asset disposal, expense reduction, improvements in organizational operations, capital increase, and establishing a sale plan.
If the management improvement plan is approved by the Financial Services Commission (FSC), improvements will be carried out for one year and six months in accordance with the plan. The Financial Services Commission (FSC) said Lotte Non-Life Insurance can resolve the grounds for prompt corrective action by implementing the management improvement plan, in which case the demand for management improvement will end.
The Financial Services Commission (FSC) approved a disposition recommending management improvement for Lotte Non-Life Insurance in Nov. last year. It said capital management adequacy and sustainability were deemed insufficient.