The Korea Times

Korea’s digital insurers disappearing amid regulatory hurdles, structural challenges

Digital insurance companies in Korea have been shrinking amid steep regulatory hurdles and structural challenges, leaving only two insurers — Kyobo Lifeplanet Life Insurance and Kakao Pay Insurance — as the main players, industry officials said Sunday. According to the Insurance Business Act, an insurance company is classified as a digital insurer if at least 90 percent of its total insurance contracts and premiums are obtained through methods such as telephone and computer communications. In the first quarter of this year, only Kyobo Lifeplanet and Kakao Pay Insurance met these standards, as they each generated 100 percent of their sales through online channels. The figure for Carrot General Insurance, the nation’s first digital non-life insurer, stood at 89.1 percent. On Sept. 10, Hanwha General Insurance is set to absorb its subsidiary, Carrot General Insurance. Established in 2019, Carrot has faced ongoing losses and worsening financial health, leading to the decision to merge it back into its parent company. Hana General Insurance and Shinhan EZ General Insurance, which once po

Aug 10, 2025By Jun Ji-hye

Korea’s digital insurers disappearing amid regulatory hurdles, structural challenges

Policy

Delayed overhaul of financial authorities deepens rift, stalls policies

The turf war between the Financial Services Commission (FSC), the country’s top financial regulator, and the Financial Supervisory Service (FSS), the financial watchdog, has intensified amid prolonged discussions over restructuring the country’s financial authorities since the inauguration of the Lee Jae Myung administration on June 4. The delay has also postponed the appointment of new leaders for both agencies, disrupting key financial initiatives such as the approval of the country’s fourth internet-only bank. The State Affairs Planning Committee, responsible for outlining a five-year policy road map for the Lee administration, is scheduled to announce major national projects, including the financial regulatory restructuring plan, around Wednesday before wrapping up its activities on Thursday. The committee already presented a restructuring proposal to the presidential office, suggesting the separation of the FSC’s financial policy role from its supervisory duties. According to the proposal, the FSC’s financial policy function would be integrated into the Ministry of Economy

Aug 10, 2025By Jun Ji-hye

Delayed overhaul of financial authorities deepens rift, stalls policies

Others

Food prices surge as extreme weather, consumption vouchers deepen supply-demand gap

Food prices are climbing sharply in Korea as supply struggles to keep pace with rising demand, government officials and market observers said Thursday. While extreme weather conditions this summer — including torrential rains and heat waves — have disrupted the production of agricultural, livestock and fishery products, demand has surged following the distribution of government-issued voucher-based cash handouts, they added. According to data from the Korea Agro-Fisheries & Food Trade Corporation, the retail price of a head of napa cabbage reached 6,349 won ($4.60) as of Tuesday, a 74.7 percent spike from 3,639 won a month earlier, driven by a decline in yields due to the summer heat. Spinach prices soared 81.1 percent to 2,109 won per 100 grams over the past month. Other key vegetables have also seen significant increases, with cabbage prices rising 23.2 percent, the price of 100 grams of lettuce climbing 38.8 percent and radish prices increasing by 29.7 percent. As for fruit, a bundle of 10 apples was priced at 31,061 won as of Tuesday, marking a 7.7 percent increase from 28,826 wo

Aug 7, 2025By Jun Ji-hye

Food prices surge as extreme weather, consumption vouchers deepen supply-demand gap

Policy

Gov't to push nationwide tourism and consumption drive for 'real growth'

The government will host large-scale domestic tourism and consumption events every month through the end of the year, aiming to turn the recent boost in spending driven by consumption vouchers into “real growth,” Finance Minister Koo Yun-cheol said Thursday. Koo, who also serves as deputy prime minister for economic affairs, added that the government will unveil a new economic growth strategy later this month, which will include key policy directions focused on artificial intelligence (AI) and other future growth engines. Koo made the remarks while presiding over a meeting of economy-related ministers — the first such gathering under the Lee Jae Myung administration since it took office on June 4. The first agenda item was boosting regional consumption. He stressed that the meeting will be fully focused on addressing “concrete problems,” and relevant ministers will engage in intensive discussions and swiftly devise solutions to achieve what he called real growth. “Consumer spending, which had long been sluggish, is now gradually picking up. While some say we have managed to p

Aug 7, 2025By Jun Ji-hye

Gov't to push nationwide tourism and consumption drive for 'real growth'

Others

Gen Z drives values-based consumption amid growing ESG awareness

Kim Ji-min, a 22-year-old university student in Seoul, recently switched her choice of daily necessities to brands that use eco-friendly packaging to reduce plastic waste. “Even if the price is a bit higher, I want to support companies that care about the environment," she said. "I often share information about brands using eco-friendly packaging with my friends.” She added that she had stopped purchasing products from some global clothing brands after learning about their past scandals regarding pollution. Similarly, Shim, a 28-year-old private academy teacher in Incheon, stopped buying products from a global fashion brand a few years ago after the company sparked public outrage over a racially insensitive ad. “I used to buy from the brand often because I liked their designs, but once I learned about the issue, I didn’t want to support them anymore,” she said. “No matter how good the products are, I can’t support a company that lacks sensitivity to human rights.” The growing emphasis on environmental, social and corporate governance (ESG) across society is fueling a rise,

Aug 7, 2025By Jun Ji-hye

Gen Z drives values-based consumption amid growing ESG awareness

Banking & Finance

KakaoBank reports record earnings on growing noninterest income

KakaoBank posted its strongest-ever half-year performance, reporting an operating profit of 353.2 billion won ($254 million) and a net profit of 263.7 billion won in the first half of 2025, the company said Wednesday. These figures represent year-on-year increases of 11 percent and 14 percent, respectively. The surge in earnings was driven by a rise in noninterest income and continued growth in its customer base. In its regulatory filing, Korea’s largest internet-only bank reported a net profit of 126.3 billion won for the April-June period, marking a 5.1 percent increase from 120.2 billion won during the same period last year. The bank generated 562.6 billion won in noninterest income — excluding loan interest earnings — in the first half of the year, accounting for 36 percent of its total revenue of 1.56 trillion won. This represents a 30.4 percent increase from the same period a year earlier. The company attributed the growth to enhanced platform capabilities across lending, investment and payment services, as well as steady revenue expansion in firm banking, open banking and adv

Aug 6, 2025By Jun Ji-hye

KakaoBank reports record earnings on growing noninterest income

Banking & Finance

Hanwha Life's new co-CEOs pledge AI innovation, global expansion

Hanwha Life Insurance said Tuesday that Vice Chairman Kwon Hyeuk-woong and President Lee Kyung-keun have been appointed co-CEOs following an extraordinary shareholders’ meeting and board of directors session. In a joint letter to employees, the new leaders called on employees to help transform the company into a “life solution partner” that delivers tailored services throughout each customer’s entire life journey, extending beyond the traditional scope of insurance. They identified artificial intelligence (AI) as a core growth engine, emphasizing the need to drive innovation and make fundamental paradigm shifts to stay competitive in an increasingly dynamic market. “As AI accelerates the shift toward hyper-personalization, the insurance industry must evolve from offering uniform coverage to delivering deeply customized solutions that reflect each customer’s unique life circumstances,” the letter read. The co-CEOs also reaffirmed the company’s long-term vision of evolving from a leading domestic insurer into a global, comprehensive financial group. Hanwha Life has already e

Aug 5, 2025By Jun Ji-hye

Hanwha Life's new co-CEOs pledge AI innovation, global expansion

Policy

Convenience stores, optical shops emerge as biggest beneficiaries of cash handout

Convenience stores and optical shops have seen a notable boost in sales since the government began distributing voucher-based cash handouts on July 21, according to industry officials on Tuesday. GS Retail, which operates the major convenience store franchise GS25, reported that average spending per customer rose by over 10 percent from July 22 to Aug. 3 compared to the same days in the previous month — June 24 to July 6 — and was also up around 10 percent year-on-year. BGF Retail, the operator of CU convenience stores, also recorded an approximately 10 percent year-on-year increase in daily sales during the July 21 to Aug. 3 period. BGF Retail analyzed that sales growth was particularly strong at stores located in densely populated residential areas, with increased sales of food items, indicating that these stores have captured grocery demand that would normally go to large supermarkets. The consumption voucher program has also contributed to boosting sales for small businesses. Data from Korea Credit Data, which analyzed credit card transactions from 382,207 small business establish

Aug 5, 2025By Jun Ji-hye

Convenience stores, optical shops emerge as biggest beneficiaries of cash handout

Banking & Finance

Banks face growing burden as gov't doubles education tax, pushes bad bank funding

Banks face a heavier burden as the government doubles the education tax, despite lenders' active support of government-led initiatives such as the bad bank program in line with its push for mutual growth, industry officials said Tuesday. The Lee Jae Myung administration’s tax reform measures, announced Thursday by the Ministry of Economy and Finance, propose doubling the education tax rate for major financial and insurance companies from 0.5 percent to 1 percent. The 1 percent education tax will apply to financial and insurance companies earning over 1 trillion won ($720 million) in annual revenue. Around 60 firms are expected to be subject to the higher rate, with the change projected to generate an additional 1.3 trillion won in tax revenue. In 2023 alone, the government collected about 1.75 trillion won in education taxes from the financial and insurance sectors. The education tax is intended to support the development of educational infrastructure and improve teacher welfare. However, critics have long argued that banks and insurance companies are not directly connected to the educ

Aug 5, 2025By Jun Ji-hye

Banks face growing burden as gov't doubles education tax, pushes bad bank funding

Policy

Young Koreans cancel high-interest savings accounts amid rising living costs

Kim, a 30-year-old office worker in Seoul, began contributing 500,000 won ($360) to a government-subsidized savings account, or Youth Leap account, in September 2023, setting aside part of his monthly salary from his first job. He was hopeful about the state-provided matching funds and tax advantages, which promised a sizable lump sum after five years. But the optimism did not last long. As the cost of living surged, covering monthly credit card bills and basic expenses became increasingly difficult. Kim ended up terminating the savings plan early in April. “With rent and food prices rising, I felt like I was going into the red every month. I just couldn’t afford to wait five years,” Kim said. Kim’s experience reflects a broader trend with the Youth Leap account program, launched under the previous Yoon Suk Yeol government to help young adults accumulate long-term savings. Despite its intended goals, the program has struggled to gain traction as many young participants face financial strain due to unstable employment and rising living costs. The program, which began in July 2023,

Aug 5, 2025By Jun Ji-hye

Jun Ji-hye

Read more

Korea’s digital insurers disappearing amid regulatory hurdles, structural challenges

Delayed overhaul of financial authorities deepens rift, stalls policies

Food prices surge as extreme weather, consumption vouchers deepen supply-demand gap

Gov't to push nationwide tourism and consumption drive for 'real growth'

Gen Z drives values-based consumption amid growing ESG awareness

KakaoBank reports record earnings on growing noninterest income

Hanwha Life's new co-CEOs pledge AI innovation, global expansion

Convenience stores, optical shops emerge as biggest beneficiaries of cash handout

Banks face growing burden as gov't doubles education tax, pushes bad bank funding

Young Koreans cancel high-interest savings accounts amid rising living costs

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