gckwon's Financial and IT Blog

Typhoon San-san, classified as one of the most powerful storms in history, has struck Japan's central and southern regions with devastating force. Typhoon San-san, classified as one of the most powerful storms in history, has struck Japan's central and southern regions with devastating force. The typhoon has led to multiple casualties, extensive damage, and significant disruptions. This blog post provides an update on the impact of the typhoon and the ongoing efforts to manage the disaster. On August 29, Typhoon San-san battered Japan's central and southern regions, resulting in severe damage and casualties. The storm, described as "historically powerful," has wreaked havoc across several areas, with reports of fatalities and injuries mounting. In Aichi Prefecture, three individuals lost their lives due to a landslide caused by the typhoon. Rescue teams managed to save a family of five buried under debris, but unfortunately, two elderly people and a man in his thi...

On August 29, a sinkhole in Seoul's Seongnam-ro area caused a vehicle to fall in, injuring the driver and a passenger.  On August 29, a sinkhole in Seoul's Seongnam-ro area caused a vehicle to fall in, injuring the driver and a passenger. The incident occurred in a location where a city gas pipe was buried, raising fears of a potential major disaster. This blog post details the incident, its causes, and the risks associated with such events. 1. Incident Overview On the morning of August 29, at 11:26 AM, a sinkhole appeared on Seongnam-ro in Yeonhui-dong, Seodaemun District, Seoul. The sinkhole measured 6 meters in width, 4 meters in length, and 2.5 meters in depth. A Tivoli vehicle traveling on the road tilted to the left and fell into the hole. As a result of the incident, the 80-year-old male driver sustained serious injuries and was transported to a nearby hospital. The 70-year-old female passenger was found in a state of cardiac arrest but regained a pulse after receiving C...

Savings banks recorded a loss of 3.8 trillion KRW in the first half of the year, mainly due to an increase of nearly 4 trillion KRW in loan loss provisions related to real estate project financing (PF). Savings banks recorded a loss of 3.8 trillion KRW in the first half of the year, mainly due to an increase of nearly 4 trillion KRW in loan loss provisions related to real estate project financing (PF). Despite the significant drop in profits, the financial authorities have stated that the situation does not warrant artificial restructuring. Instead, they are focusing on promoting voluntary mergers and acquisitions (M&A). This blog post explores the reasons behind the losses and the regulatory responses. 1. Reasons Behind the Losses In the first half of 2024, savings banks reported a loss of 3.8 trillion KRW, a substantial increase of 2.8 trillion KRW compared to the same period last year. The main reason for this loss is the increase in loan loss provisions by approximately 4 trill...

Aplus Asset Advisor (Aplus Asset), a listed General Agency (GA), has shown remarkable growth in its first-half performance, with its operating profit nearly tripling. Aplus Asset Advisor (Aplus Asset), a listed General Agency (GA), has shown remarkable growth in its first-half performance, with its operating profit nearly tripling. This growth is attributed to a special boom in the life insurance market, driven by intense competition among insurers to sell short-term whole life insurance. However, Aplus Asset's performance in non-life insurance sales has also shown significant growth, proving its competitiveness in the market. This blog post will delve into the factors behind Aplus Asset's success and its future outlook. Life Insurance Boom and Non-Life Insurance Success Aplus Asset achieved significant growth in its operating profit in the first half of this year, nearly tripling compared to the same period last year. While this impressive result was largely due to a special b...

Hanwha Life Financial Services, an insurance sales subsidiary established by Hanwha Life three years ago, has recently demonstrated remarkable performance.  Hanwha Life Financial Services, an insurance sales subsidiary established by Hanwha Life three years ago, has recently demonstrated remarkable performance. By separating insurance sales from product development, the company has maximized operational efficiency, and is expected to achieve 100 billion KRW in net profit this year. This blog post explores the success factors behind Hanwha Life Financial Services and its future outlook. A Bold Move by Hanwha Life: Establishing an Insurance Sales Subsidiary Three years ago, Hanwha Life became the first major insurance company to establish a subsidiary dedicated solely to insurance sales. At the time, this decision was met with considerable skepticism, as the size of a company’s captive sales force was a key indicator of market competitiveness in the domestic insurance sector. Operati...

An unprecedented phenomenon has occurred where insurance companies' mortgage rates have become lower than those of the top five commercial banks, leading to a surge in mortgage applications to insurance firms. An unprecedented phenomenon has occurred where insurance companies' mortgage rates have become lower than those of the top five commercial banks, leading to a surge in mortgage applications to insurance firms. This situation arises as a "balloon effect," where the demand for loans shifts to the second financial sector due to the financial authorities tightening regulations on banks. With authorities also demanding the second financial sector manage household debt, insurance companies have hurriedly raised their loan interest rates. This situation is leading to significant side effects of government-controlled interest rates. Mortgage Applications Flooding into Insurance Companies According to the insurance industry on the 28th, the number of mortgage application...

Financial Supervisory Service (FSS) Chairman's Comments Lead to Sudden Mortgage Loan Regulations by Banks, Disrupting Homebuyers' Plans Financial Supervisory Service (FSS) Chairman's Comments Lead to Sudden Mortgage Loan Regulations by Banks, Disrupting Homebuyers' Plans Choi, a worker set to marry next year, rushed to buy a home in early August due to skyrocketing real estate prices in Seoul. After seeing the prices rise daily, he moved quickly to secure a housing mortgage loan (home loan) of up to 500 million won from the bank for a 900 million won apartment. Concerned that the skyrocketing prices might jeopardize his purchase, he paid the deposit and interim payments of 200 million won ahead of schedule. However, the situation changed dramatically when financial authorities, led by Financial Supervisory Service (FSS) Chairman Lee Bok-hyeon, criticized the recent interest rate hikes by banks. Following the criticism, banks began tightening loan conditions significantl...

Woori Financial Group has decided to acquire Dongyang Life and ABL Life, marking its return to the insurance industry after a decade. Woori Financial Group has decided to acquire Dongyang Life and ABL Life, marking its return to the insurance industry after a decade. This move is seen as a significant step in completing its comprehensive financial group portfolio. This blog post explores the background, process, and future outlook of this acquisition. On August 28, Woori Financial Group's board of directors resolved to acquire Dongyang Life and ABL Life, signing a stock purchase agreement (SPA). This acquisition marks Woori Financial’s re-entry into the insurance industry for the first time in 10 years since the sale of Woori Aviva Life in 2014. Acquisition Details and Background Woori Financial’s acquisition involves a 75.34% stake in Dongyang Life for 1.284 trillion won and a 100% stake in ABL Life for 265.4 billion won, totaling 1.5493 trillion won. The price-to-book ratios (PBR...

Kim Yong-tae, the chairman of the Korea Insurance GA Association, recently shared his vision and strategy for the introduction of Insurance Sales Specialist Companies in an interview.  Kim Yong-tae, the chairman of the Korea Insurance GA Association, recently shared his vision and strategy for the introduction of Insurance Sales Specialist Companies in an interview. He emphasized enhancing consumer trust and protecting the rights of insurance agents as key to strengthening the position of GAs within the financial industry. This blog post delves into the key points of Chairman Kim's interview, discussing the necessity of Insurance Sales Specialist Companies, industry expectations and concerns, and the plans for future implementation. In June, Kim Yong-tae marked his first anniversary as the chairman of the Korea Insurance GA Association. Coinciding with this milestone, the GA self-regulation agreement aimed at preventing excessive scout fees will also celebrate its first anniversary...

To curb excessive competition in recruiting insurance agents, general agencies (GAs) will now be required to disclose the total amount of settlement support funds paid for recruiting agents on a quarterly basis. To curb excessive competition in recruiting insurance agents, general agencies (GAs) will now be required to disclose the total amount of settlement support funds paid for recruiting agents on a quarterly basis. This initiative, led by the Korea Insurance Agents Association, aims to enhance transparency and promote healthy market practices within the insurance industry. This blog post will delve into the key aspects of the newly established guidelines known as the 'Best Practices for GA Insurance Agent Settlement Support Fund Operations' and the expected impact of these measures. Recently, competition among general agencies (GAs) in the insurance industry has intensified, with some GAs offering settlement support funds amounting to 100-200% of the agents' previous a...

Recent developments suggest that the insurance mergers and acquisitions (M&A) market may be regaining momentum in the second half of 2024 Recent developments suggest that the insurance mergers and acquisitions (M&A) market may be regaining momentum in the second half of 2024. The combination of insurance companies' earnings surprises and financial holding companies' push to expand their non-bank portfolios is raising hopes that the current inventory of unsold assets could be resolved. This article explores the current state and future outlook of the insurance M&A market. The insurance M&A market is starting to attract attention again. After a prolonged period of stagnation, there are indications that activity might pick up in the latter half of the year. Currently, six insurance companies are up for sale: ABL Life, Cardif Life, KDB Life, MG Non-Life, Dongyang Life, and Lotte Non-Life. The main reasons for the prolonged sale delays have been concerns about financ...

Toss, the mobile financial service operated by Viva Republica, has achieved its first-ever quarterly profit since its establishment 11 years ago. Toss, the mobile financial service operated by Viva Republica, has achieved its first-ever quarterly profit since its establishment 11 years ago. This milestone highlights Toss's strength as a comprehensive financial platform and demonstrates the profitability of its subsidiaries. This blog explores the three key implications of Toss’s first quarterly profit. Toss, founded in 2013, started with simple remittance services and has since grown into a comprehensive financial platform with various services including internet banking, securities, and insurance. Achieving a quarterly profit is a significant milestone for Toss, marking a turning point from its history of accumulated losses. This achievement carries three key implications: 1. Validation of Comprehensive Financial Platform Competence    Toss reported operating revenues of 914....

Mirae Asset Financial Services, a subsidiary-type General Agency (GA) of Mirae Asset Life Insurance, has achieved its highest revenue ever in the first half of this year. Mirae Asset Financial Services, a subsidiary-type General Agency (GA) of Mirae Asset Life Insurance, has achieved its highest revenue ever in the first half of this year. The company has seen consistent growth since the separation of sales and product development in 2021, with a significant increase in revenue, particularly driven by its focus on protection-oriented insurance products and expanding Contractual Service Margin (CSM). This article explores Mirae Asset Financial Services’ performance and future outlook. Mirae Asset Financial Services, often referred to as the pioneer of the separation of sales and product development, has shown impressive growth following the landmark decision to separate these functions in 2021. According to Mirae Asset Life Insurance's interim report released on the 28th, Mirae Asse...

The Financial Supervisory Service (FSS) has initiated a spot inspection of large General Agencies (GAs) ValueMark and Leaders Asset Advisor due to their high rates of incomplete sales. The Financial Supervisory Service (FSS) has initiated a spot inspection of large General Agencies (GAs) ValueMark and Leaders Asset Advisor due to their high rates of incomplete sales. These GAs are being scrutinized for their main products and contract retention rates. This article examines the background and key details surrounding this inspection. The Financial Supervisory Service (FSS) has begun a spot inspection of large General Agencies (GAs) ValueMark and Leaders Asset Advisor. According to the insurance industry, the FSS recently sent a pre-notification of the inspection to the compliance departments of these GAs, with the inspection set to begin on the 28th. As of the end of last year, ValueMark is a large GA with 2,251 agents, reporting an operating income of 136.4 billion KRW and a net income ...

Incar Financial Services’ branch manager support fund system has come under scrutiny. Incar Financial Services’ branch manager support fund system has come under scrutiny. The settlement support fund intended to attract top insurance planners is instead increasing the burden on branch managers and allegedly contains clauses that favor the company. This post explores the controversy surrounding Incar Financial Services' support fund policy, the company's explanation, and potential solutions to the problem. Recently, controversy has been growing in the GA (General Agency) industry regarding Incar Financial Services' "Advance Support Fund" system. The company provides this fund to branch managers to help attract top insurance planners, but critics argue that it essentially functions as a loan that burdens branch managers instead of fulfilling its intended purpose. To attract insurance planners, branch managers are expected to pay a settlement support fund amounting t...