Samsung Lifes globalization efforts stay on track

By Kang Seung-woo

Behind its record net income in the 2010 fiscal year, Samsung Life Insurance has its eyes on global and retirement markets to continue its strong run.

Samsung, the nation’s biggest life insurer, saw its earnings top 1 trillion won for the first time after raking in 1.27 trillion won as of the third quarter of last year.

However, Samsung Life is not just sitting back and plans to aggressively make forays into overseas markets for a new growth engine, with China its first target.

With the world’s No. 2 economy in its sights, Samsung Life invited Park Keun-hee to its presidency in November last year to make efforts to strengthen its presence in China. The 57-year-old is familiar with the country after serving as Samsung China president.

In line with Park’s appointment, the insurance firm went through restructuring which expanded the oversea business team into the overseas business headquarters in a step to brace for soon-to-be larger overseas business.

“Samsung Life is a runaway leader in the domestic life insurance market, but we cannot sit back, just enjoying the title. We need to set our bar higher as the world No. 1 insurer,” Park said.

“From now, all management will focus on globalization.”

After its initial public offering (IPO) in May last year, its CEO Lee Soo-chang said that he would direct the life insurer toward qualitative development and globalization due to unfavorable conditions to its steady growth ― market saturation, decline of population and low interest rate ― in the Korean market.

Samsung Life has currently two joint ventures ― Samsung Air-China Life Insurance in China and Siam Samsung Life Insurance in Thailand.

“Samsung Life’s future depends on its overseas business, which is a new growth engine. While fortifying its business in China and Thailand, we will review additional countries to enter,” said an official of Samsung Life.

Along with overseas expansion, the retirement market is drawing attention of Samsung Life.

Compared with other advanced economies, Korea is well behind them in terms of understanding of and preparation for post-retirement life, so the insurer set up Samsung Life Retirement Research Center in February.

Through the center, Samsung Life plans to define a new paradigm for retirement plans.

Furthermore, it will make efforts to propose advanced models of its retirement plans to contribute to the aging community.

It intends to benchmark developed economies including Japan and the United States, while holding international symposiums and conferences for the retirement market.