South Korea’s Financial Supervisory Service published quarterly data on insurers’ capital adequacy under the Korean-Insurance Capital Standard (K-ICS), showing an improvement by end-September 2025. The sector’s K-ICS ratio was 210.8% with transitional measures applied, up 4.0 percentage points from three months earlier, and 196.8% without transitional measures, up 4.7 percentage points; life insurers stood at 201.4% (183.1% without transitional measures) and nonlife insurers at 224.1% (217.0% without transitional measures). Available capital under K-ICS rose to KRW 274.7 trillion with transitional measures (KRW 271.3 trillion without), supported by KRW 3.3 trillion in net earnings, a KRW 7.1 trillion increase in accumulated other comprehensive income and KRW 3.0 trillion growth in the contract service margin. Required capital increased to KRW 130.3 trillion (KRW 137.8 trillion without), driven by higher equity risk (+KRW 6.5 trillion) amid a stock market rally, partly offset by lower interest rate risk (-KRW 2.2 trillion). The FSS said it will closely monitor insurers’ asset-liability management positions and loss ratios and will guide vulnerable companies to strengthen risk management.
South Korea Financial Supervisory Service 2026-01-06
South Korea Financial Supervisory Service reports September 2025 K-ICS capital adequacy ratio at 210.8% with transitional measures and signals closer monitoring of ALM and loss ratios
South Korea's Financial Supervisory Service reported an improvement in insurers' capital adequacy under the Korean-Insurance Capital Standard (K-ICS) by end-September 2025, with the sector's K-ICS ratio at 210.8% with transitional measures and 196.8% without. Available capital rose to KRW 274.7 trillion, driven by net earnings and increased comprehensive income, while required capital increased due to higher equity risk amid a stock market rally.