The Financial Supervisory Service moved to tighten oversight so insurers do not inflate expected income in recruitment ads for "side-hustle agents," but the industry is still pushing promotions that highlight high earnings. Critics say the real average income is only 130,000 won, yet applicants are lured with claims of revenue of 1.5 million won or more.
According to the insurance industry on the 7th, Meritz Fire & Marine's side-hustle agent organization "Meritz Partners" is recruiting on its website with the phrase, "One hour a day, first-month average income of 1.5 million won." Another ad posted on the used-goods platform karrot highlights a revenue example by showing a mock account screen with a 5.16 million won deposit.
Samsung Fire & Marine's "N Job Crew" is also promoting by showing a screen with a 1.5 million won deposit on its website. Lotte Non-Life Insurance's "Wonder" is using an example of "total income of 1.98 million won," which combines insurance commissions and contract signing bonuses, to recruit agents.
Actual income levels diverge widely from the ads. According to the Financial Supervisory Service (FSS), as of the end of last year there were 17,591 side-hustle insurance agents, more than triple from a year earlier, but the average monthly income per person was only 130,000 won. That is one twenty-fifth of the exclusive agents' average (3.29 million won). The premium earned from contracts they newly brought in last year was 3.24 billion won, about 2% of the industry total.
The Financial Supervisory Service (FSS) earlier identified job ads that exaggerate side-hustle agents' income as a factor that harms consumers and said it would guide firms to strengthen internal controls. The judgment is that as side-hustle agents with relatively weaker product expertise increase, the risk of misselling could grow.
An insurance industry official said, "Side-hustle agents, by nature of juggling with their main jobs, find it hard to fully grasp product structures and policy terms," adding, "Ultimately, as they expand sales to acquaintances and family through personal ties, unsuitable product recommendations can increase."
Insurers argue the ads do not amount to exaggeration. A Meritz Fire & Marine official said, "We presented the first-month average revenue," adding, "There is a gap with the statistics because activity often drops after initially remodeling one's own or family insurance."
Samsung Fire & Marine said, "The amount is an example, and we are considering reducing the exposure of amounts." Lotte Non-Life Insurance also said it is strengthening internal reviews, noting that "the 'total income of 1.98 million won' is an example that includes one-off incentives."