Ha Tae-kyung, head of the Insurance Institute of Korea, said the Financial Services Commission is blocking the institute's investment in artificial intelligence (AI) projects and demanded a public apology from Chairperson Lee Eog-weon of the Financial Services Commission. He argued this also runs counter to President Lee Jae-myung's emphasis on a "startup-centered nation."
On the 5th, Ha held a press briefing at a restaurant near Gwanghwamun in Seoul and said, "The Financial Services Commission (FSC) conveyed its opposition to the Insurance Institute's joint investment in educational AI, putting the project on the verge of collapse," adding, "The Chairperson should withdraw the anachronistic opposition to AI startups and investment and issue an official apology to the Insurance Institute."
Over the past two years, the Insurance Institute developed three major educational AI solutions after developing AI education technology: ▲ AI sales coach ▲ AI exam question-setting system ▲ AI personalized learning experience platform (LXP). It has since pursued a total of 2.5 billion won in joint investment with overseas corporations to commercialize the technology.
The investment structure is 1 billion won from the Insurance Institute, 1 billion won from Taiwan's Wisdom Garden, and 500 million won from Singapore's X402 Labs. It also put in place safeguards, including a put option that allows recovery of the investment within three months after the next head takes office.
The institute said it also completed a legal review. It reviewed legality through Supreme Court precedents and legal advice, and received an authoritative interpretation from the Ministry of Justice to the effect that "nonprofit corporations may conduct for-profit business as an adjunct to nonprofit business within the scope necessary to achieve their purpose."
By contrast, the Financial Services Commission (FSC) was said to take the position that a nonprofit corporation cannot establish a company for profit. It was also reported to have pointed out that there could be issues if the project fails and incurs losses.
Ha said, "The Ministry of Justice replied in the sense that it is a matter of the institute's discretion, but the Financial Services Commission (FSC) blocking this is an overreach and an abuse of authority," adding, "It is hard to understand why, while emphasizing productive finance, it alone is putting the brakes on the Insurance Institute's AI investment." He continued, "The Blue House should step in to investigate the FSC, which has openly defied President Lee Jae-myung's startup-centered nation theory, and take immediate action."
The Insurance Institute plans to conduct a final review of investment in the new AI business and the supplementary budget at a board meeting on the 7th.