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| Hana Bank's head branch in central Seoul / Korea Times file |
By Kim Bo-eun
Koreans in Indonesia who signed up for savings insurance plans offered by local state-run insurer Jiwasraya are still unable to collect 45 billion won in claims as the insurer has defaulted.
Jiwasraya sold 1.3 trillion won in savings insurance plans guaranteeing between 6 percent and 9 percent interest rates, at seven banks including Hana Bank's subsidiary in Indonesia.
The insurance company, however, stated it was unable to pay customers whose policies matured in 2018 and 2019.
Jiwasraya is currently on trial for allegations of fraud in managing investments.
Among Jiwasraya policyholders who have yet to redeem their investments, there are 474 Koreans, and their investments amount to 45.3 billion won.
Out of the 474, nine policyholders have received payments, but for the remaining 465, the issue has been pending for two years.
Regarding the distribution of the policies, Hana Financial Group acknowledged last year that mis-selling had occurred. The savings insurance plans were found to have been promoted as savings products.
Rep. Lee Young of the People Power Party referred to the inaction of the Financial Supervisory Services (FSS) in resolving the matter, at a National Assembly audit of the supervisory agency on Friday.
"The FSS governor said the agency would look into the case given Hana Bank acknowledged mis-selling was involved," Lee said. "Hana was involved in mis-selling, and Hana is a Korean bank. Koreans have become victims," she said.
The FSS, however, has not taken any action so far.
Yoon pledged to follow through with earlier remarks.
Hana Bank's stance, however, is that insurers take on the risk of all policies if banks distribute their products.
Indonesian authorities, meanwhile, unveiled plans in July to restructure Jiwasraya's policies and transfer them to a new life insurance company to be set up.
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