One Financial Services Fined 100 Million KRW for Insurance Contract Violations
The Financial Supervisory Service (FSS) has imposed a fine of 100 million KRW on One Financial Services for violating insurance contract regulations. The violation involved signing up policies under false names, a practice prohibited under Article 97 of the Insurance Business Act. This incident highlights the need for adherence to legal standards and greater transparency within the insurance industry. On August 18th, the FSS announced that Wonkum Financial Services had violated Article 97 of the Insurance Business Act during the insurance contract signing and solicitation processes. Specifically, between March 6, 2019, and November 29, 2019, the agency signed up 194 insurance contracts, including accident insurance, under names other than those of the actual policyholders. As a result, the initial premiums amounted to approximately 33 million KRW, and the agency earned 125 million KRW in commissions. These actions were clear violations of the law, leading the FSS to impose a fine of 10...