The South Korea Financial Services Commission (FSC) held a taskforce meeting to complete a final review of preparations for new life insurance conversion products that allow policyholders to access death benefits early as retirement income. The FSC indicated the first products will launch on 30 October. Eligible policyholders will be contacted individually from 23 October by five insurers named by the FSC, Samsung, Hanwha, Kyobo, Shinhan Life, and KB Life. As of end-September 2025, the FSC reported 414,000 eligible contracts covering around KRW 23.1 trillion in benefits. By 2 January 2026, remaining life insurers are expected to roll out comparable products and notify eligible policyholders one week before launch, expanding eligibility to 759,000 contracts and KRW 35.4 trillion in benefits. Applications are limited to face-to-face channels for policyholders aged 55 and over, with insurers expected to provide simulations and comparisons based on the customer’s chosen conversion ratio and period; policyholders can suspend, opt out, and later re-enter during the conversion period. The FSC also outlined plans to use related service-type conversion products as a testbed for shifting insurance toward senior-care service provision, with regulatory support to be provided through the regulatory sandbox. Separately, insurers are preparing to introduce tontine pension plans in early 2026.

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