"Agents Receiving High Settlement Bonuses Also Involved in Unfair Contract Transfers" – GA Industry's Intense Recruitment Competition and Self-Regulatory Efforts
Recently, the competition to recruit agents in the General Agency (GA) industry has intensified, sparking controversy over settlement bonuses. Recently, the competition to recruit agents in the General Agency (GA) industry has intensified, sparking controversy over settlement bonuses. Excessive settlement bonuses have led to consumer harm, prompting the Financial Supervisory Service (FSS) and the GA Association to establish new standards and strengthen self-regulation. In this article, we examine the issues surrounding settlement bonuses in the GA industry and the efforts to address them. Over the past two years, a total of 259 billion won in settlement bonuses has been paid to 14,901 experienced agents affiliated with General Agencies (GAs), averaging 17.4 million won per agent. However, data shows that the more settlement bonuses an agent receives, the more likely they are to be involved in unfair contract transfers. This finding came from a recent investigation by the Financial Supe...