The Financial Services Commission (FSC) is planning to introduce a licence for small insurance companies which will have a minimum capital of KRW1bn ($832,000).
Such small insurers are to offer simple short-term insurance services, according to local media report.
The goal is to revitalise the insurance market under the “2020 Financial Industry Innovation Policy Promotion Plan”.
In comparison, currently, the minimum capital requirement for an insurance company with a comprehensive insurance business licence is KRW30bn. However, through presidential decree, an insurance company with a selective insurance business licence may have a minimum capital requirement of KRW5bn.
At the same time, the FSC is considering allowing insurers to invest in online healthcare platforms as subsidiaries.The aim is to create synergies with non-financial innovative entrepreneurship platforms to enhance the financial industry’s competitiveness.