South Korea Insurance Industry – Governance, Risk and Compliance

GlobalData’s ‘South Korea Insurance Industry – Governance, Risk, and Compliance’ report is the result of extensive research into the insurance regulatory framework in South Korea.

It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.

The report brings together GlobalData’s research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

Key Highlights

– The Financial Supervisory Commission and the Financial Supervisory Service regulate the South Korean insurance industry

– Composite insurance is not permitted in South Korea. However, both life and non-life insurers can carry on accident and health insurance business

– 100% FDI is permitted in the South Korean insurance industry

– Motor third-party liability insurance, fire and liability insurance for buildings are the key mandatory classes of insurance in South Korea

– Non-admitted insurance is permitted for life and reinsurance business in South Korea

The report provides insights into the governance, risk, and compliance framework pertaining to the insurance industry in South Korea, including –

– An overview of the insurance regulatory framework in South Korea

– The latest key changes, and changes expected in the country’s insurance regulatory framework

– Key regulations and market practices related to different types of insurance product in the country

– Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in South Korea

– Key parameters including licensing requirements permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations

– Details of the tax and legal systems in the country


– The report covers details of the insurance regulatory framework in South Korea.

– The report contains details of the rules and regulations governing insurance products and insurance entities.

– The report lists and analyzes key trends and developments pertaining to the country’s insurance regulatory framework.

– The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.

– The report provides details of taxation imposed on insurance products and insurance companies.

Reasons to buy

– Gain insights into the insurance regulatory framework in South Korea.

– Track the latest regulatory changes, and expected changes impacting the South Korea insurance industry.

– Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.

– Understand key regulations and market practices pertaining to various types of insurance product

Table of Contents

Table of Contents


1.1 What is this Report About?

1.2 Definitions


2.1 Legislation Overview and Historical Evolution

2.2 Latest Changes in Regulation

2.3 Legislation and Market Practice by Type of Insurance

2.3.1 Life insurance

2.3.2 Property insurance

2.3.3 Motor insurance

2.3.4 Liability insurance

2.3.5 Marine, aviation and transit insurance

2.3.6 Personal accident and health insurance

2.4 Compulsory Insurance

2.4.1 Motor third-party liability insurance

2.4.2 Workers’ compensation insurance

2.4.3 Fire and liability insurance for special buildings

2.4.4 Fire legal liability insurance

2.4.5 Liability insurance for the damage caused by gas accidents

2.4.6 Liability insurance for industries that cause environmental pollution

2.4.7 E-Biz liability insurance

2.4.8 Personal accident insurance for students and part-time assistants working in university laboratories

2.4.9 National health insurance

2.5 Supervision and Control

2.5.1 International regulatory authority

2.5.2 Financial Services Commission

2.5.3 National Regulatory Authority

2.5.4 Korea Life Insurance Association

2.5.5 General Insurance Association of Korea

2.6 Non-Admitted Insurance Regulations

2.6.1 Overview

2.6.2 Intermediaries

2.6.3 Market practices

2.6.4 Fines and Penalties

2.7 Company Registration and Operations

2.7.1 Type of insurance organization

2.7.2 Establishing a local company

2.7.3 Foreign ownership

2.7.4 Types of license

2.7.5 Capital requirements

2.7.6 Solvency margin

2.7.7 Reserve requirements

2.7.8 Investment regulations

2.7.9 Statutory return requirements

2.7.10 Fee structure

2.8 Taxation

2.8.1 Insurance premium or policy taxation

2.8.2 Withholding taxes on premium paid overseas

2.8.3 Corporate tax

2.8.4 VAT

2.8.5 Captives

2.9 Legal System

2.9.1 Introduction

2.9.2 Access to court

2.9.3 Alternative dispute resolution (ADR)


3.1 Methodology

3.2 Contact GlobalData

3.3 About GlobalData

3.4 GlobalData’s Services

3.5 Disclaimer

List of Tables

List of Tables

Table 1: Insurance Industry Definitions

Table 2: South Korea – Insurance Regulatory Framework Key Features

Table 3: South Korea – Penalty on the Degree of Offense

Table 4: South Korea – Life Insurance Regulatory Framework

Table 5: South Korea – Property Insurance Regulatory Framework

Table 6: South Korea – Motor Insurance Regulatory Framework

Table 7: South Korea – Liability Insurance Regulatory Framework

Table 8: South Korea – Corporate Tax Rates for the Financial Year 2020

List of Figures

List of Figures

Figure 1: South Korea – Insurance Supervision and Control at Various Levels

Figure 2: South Korea – Insurance Regulatory Frameworks for Company Registration and Operation


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