Korea's insurance associations prepare for leadership shake-up

As the terms of the heads of Korea’s two major insurance associations come to an end in December, former private industry executives are emerging as potential successors, industry officials said Monday.

The Korea Life Insurance Association represents 20 life insurers, while the General Insurance Association of Korea represents 17 non-life insurers. Their respective chairmen, Kim Chul-ju and Lee Byung-rhae, are due to leave office on Dec. 8 and Dec. 22.

Both incumbents could seek another term, but observers expect the associations to consider new leaders with direct experience running insurance businesses. The prospect comes as private sector executives have increasingly taken the helm of other financial industry bodies.

Oh Hwa-kyung, chairman of the Korea Federation of Savings Banks, secured a second term last year, becoming the first leader from the private sector to do so. Kim Ki-hwan, who heads the Korea Fire Protection Association, previously served as president of KB Insurance. Lee Dong-chul, a former vice chairman of KB Financial Group, became chairman of the Credit Finance Association, marking the first time in a decade that the post went to a private sector executive.

For the life insurance association, potential candidates include Kim Sung-han, former CEO of iM Life Insurance, and Jeon Young-muk, former CEO of Samsung Life Insurance.

Kim worked at Kyobo Life Insurance before leading iM Life — then known as DGB Life Insurance — from 2020 to 2024. Jeon became CEO of Samsung Asset Management in 2018 before taking the helm of Samsung Life in 2020.

Meanwhile, potential contenders for the general insurance association include Choi Young-moo, former CEO of Samsung Fire & Marine Insurance, and Cho Yong-il, former vice chairman of Hyundai Marine & Fire Insurance.

Whoever takes the posts will face a crowded policy agenda, with both organizations needing to be in talks with financial regulators over measures that could affect insurers’ costs and capital management.

One key issue is a proposed increase in deposit insurance premium rates — the fees companies pay to the Korea Deposit Insurance Corporation. Preliminary findings from a state-sponsored research study have suggested raising the rate for life insurers from 0.15 percent to 0.4 percent, and from 0.15 percent to 0.5 percent for non-life insurers.

Both associations will also need to engage with authorities on new basic capital requirements under the Korean Insurance Capital Standard (K-ICS). Starting next year, insurers will be required to maintain a new minimum level of basic capital — such as retained earnings, which can absorb losses directly — relative to the capital required to cover their risks.

The selection process is expected to gather pace in November, when each organization forms a committee to recommend candidates for chairman. The final appointments are expected to be made at the associations’ general meetings in December.