Insurance Business Act (Boeom Eopbeop)
The Insurance Business Act (Boeom Eopbeop) governs the regulation of insurance companies in South Korea. Enacted in 1962, the Act establishes licensing requirements, solvency margin requirements, and the supervision of insurance businesses by the Financial Services Commission. The Act regulates both life insurance and non-life insurance businesses, as well as insurance agents and brokers.
Legal area: Law governing the regulation of insurance businesses and policyholder protection.
Year enacted: 1962
Full text: https://elaw.klri.re.kr/eng_service/law_view.do?hseq=south-korea-insurance-business-act
Key Provisions
- Chapter I: General provisions (insurance business categories)
- Chapter II: Licensing (capital, governance, business plan)
- Chapter III: Business conduct (policyholder protection, disclosure)
- Chapter IV: Solvency and financial soundness
- Chapter V: Supervision (inspections, corrective orders)
- Chapter VI: Insurance contracts (duties, claims)
Significance
The Insurance Business Act provides a comprehensive regulatory framework for South Korea’s insurance industry. South Korea has a large insurance market, with significant penetration in life insurance. The Act’s solvency requirements ensure financial stability. The Act has been amended to strengthen consumer protection and to implement international insurance standards. South Korea’s insurance sector has been consolidating through mergers and acquisitions.