Ha Tae-kyung, head of the Insurance Institute of Korea, on the 10th asked the National Assembly to investigate, saying the Financial Services Commission blocked the institute's investment in a new artificial intelligence (AI) business.
At a press conference at the National Assembly communication center that morning, Ha said, "The Financial Services Commission (FSC)'s unjust interference and 'ghost regulation' are a clear overreach of authority and improper administration that weakens the innovative drive of a private body," adding, "(Chairperson Lee Eog-weon of the Financial Services Commission) should answer promptly and clearly before the public and the National Assembly, and I ask the National Assembly to investigate and correct this."
Aimed at the chairperson, Ha said, "What is the real reason you overturned the position you agreed to with the Insurance Institute of Korea in June to 'respect autonomous decisions on AI investments' and reversed the agreement yourself?" and noted, "'Ghost administration' violates the Administrative Procedures Act—will you continue this kind of government-directed control?"
Ha explained that the Insurance Institute of Korea developed three major education AI solutions—an AI sales coach, an AI exam creation system, and an AI LXP—and has pursued a total 2.5 billion won joint investment with tech companies in Taiwan and Singapore, with the institute's stake at 1 billion won.
Ha said, "This investment has had its legality verified through an authoritative interpretation by the Ministry of Justice and Supreme Court precedents, and it is a project that has completed safeguards such as a put option and discretionary authority under the articles of association."
Regarding why the board meeting fell through, Ha said, "In official communications with the institute on June 8, the Financial Services Commission (FSC) conveyed the position that 'the AI joint investment matter is something the FSC will not be involved in and is for the institute to decide on its own,'" adding, "In line with this agreement on autonomous decision-making, the institute followed procedures and sought to convene a board meeting on Aug. 7 to deliberate on the AI new-business joint investment and the supplementary budget."
He continued, "Without a document or even a single formal official letter, the Financial Services Commission (FSC) mobilized a typical 'ghost administration' of invisible directives and pressure, and in the end made it impossible to hold a normal and fair board meeting, forcing an indefinite postponement."
Ha added, "With a sense of responsibility and according to principles and conviction, I will stand to the end against the FSC's ghost regulation and government-directed control that block AI innovation in Korea's insurance industry."