The South Korea Financial Services Commission reported that the National Assembly has passed Insurance Business Act amendments designed to prevent people involved in insurance fraud and other financial law violations from entering or remaining in the insurance distribution market. The amendments broaden the offenses that can disqualify insurance solicitors, agencies, brokers and executives of corporate agencies and brokerages, and extend the appointment bar for corporate insurance agency executives convicted and fined under relevant laws from three to five years. Covered laws include the Financial Consumer Protection Act, the Special Act on the Prevention of Insurance Fraud, specified insurance fraud under Article 347 of the Criminal Act and legislation governing illegal fundraising. Registration may be canceled without a hearing where a court judgment or similar proceeding objectively establishes a disqualifying offense. Insurers and related entities must report qualifying convictions or suspended prison sentences involving their insurance solicitors to the Financial Services Commission. The amendments also permit fines instead of business suspensions for insurance agencies and brokers where necessary to protect affiliated solicitors’ livelihoods. The amended law is scheduled to take effect six months after promulgation. The Financial Services Commission plans to revise implementing regulations before it enters into force.
2026-08-20South Korea Financial Services Commission
South Korea Financial Services Commission reports passage of tighter insurance distribution restrictions, extending agency executive bar to five years
The South Korea Financial Services Commission reported passage of amendments expanding the financial law violations that can bar insurance distributors and corporate agency or brokerage executives from the market. The changes extend the appointment bar for certain corporate insurance agency executives from three to five years and allow registration cancellation without a hearing where violations are objectively established. The law is scheduled to take effect six months after promulgation.