Insurers rush to hire ex-financial bureaucrats to cope with policy changes

By Jun Ji-hye

Major insurers are appointing a significant number of outside directors with government and financial oversight experience during their annual shareholder meetings this month, a move seen as a bid to navigate regulatory changes, industry officials said Thursday.

The move comes as the revised Act on Corporate Governance of Financial Companies, which introduces an accountability framework for financial firms, takes full effect this year. In addition, changes in accounting standards and other regulatory shifts have increased the need for close communication with financial authorities.

Insurers are also preparing for potential policy shifts, caused by a change in administration amid the impending Constitutional Court ruling on President Yoon Suk Yeol’s impeachment.

During its shareholders meeting on Wednesday, Hanwha General Insurance appointed Yoo Kwang-yeol, former first senior deputy governor of the Financial Supervisory Service (FSS), as a new outside director.

Samsung Life Insurance plans to appoint Koo Yun-cheol, former minister of government policy coordination, as a new outside director on Thursday. Koo recently contributed to a book summarizing a discussion between Rep. Lee Jae-myung, leader of the main opposition Democratic Party of Korea and a potential presidential candidate, along with nine experts.

The insurer also intends to reappoint Yoo Il-ho, a former finance minister who has served as chairman of its board since last year.

Hanwha Life Insurance will reappoint Lee In-sil, former head of Statistics Korea, as an outside director, on Thursday.

On Friday, Hyundai Marine & Fire Insurance will appoint Doh Hyo-jeong, a lawyer at law firm Yulchon, as a new outside director. Doh previously spent a decade at the FSS, working mainly in the insurance supervision departments.

In 2024, the insurers primarily recruited professionals from the legal and medical fields as outside directors to better address legal disputes such as insurance fraud. But this year, a significant number of new outside directors come from government backgrounds.

“The latest trend appears to be aimed at building networks and preparing for potential policy changes as an early presidential election is anticipated,” an industry official said.