The South Korea Financial Supervisory Service reported that insurers’ Korean Insurance Capital Standard (K-ICS) ratio, including transitional measures, fell 0.8 percentage point from March to 215.2% at the end of June 2026. The ratio declined to 206.8% for life insurers but rose to 230.9% for nonlife insurers. Excluding transitional measures, the industry ratio increased 1.1 percentage points to 203.6%, comprising 193.0% for life insurers and 223.9% for nonlife insurers. With transitional measures, available capital rose 22.2% to KRW 380.0 trillion, supported by KRW 4.5 trillion in net profit and a KRW 61.2 trillion increase in accumulated other comprehensive income amid the stock market rally. Required capital increased 22.6% to KRW 176.6 trillion, mainly because equity risk rose by KRW 35.2 trillion. The FSS plans to focus on adequate capital buffers and urge insurers with weak capital positions to strengthen high-quality capital and risk management.
2026-09-16South Korea Financial Supervisory Service
South Korea Financial Supervisory Service reports insurers’ K-ICS ratio edged down to 215.2% with transitional measures
The South Korea Financial Supervisory Service reported that insurers’ K-ICS ratio with transitional measures edged down to 215.2% at the end of June 2026, while the ratio excluding those measures rose to 203.6%. A stock market rally increased both available capital through other comprehensive income and required capital through higher equity risk. The FSS will press insurers with weak capital positions to strengthen capital quality and risk management.