Latest news with #InsuranceBusinessAct
Korea Herald
04-03-2025
- Automotive
- Korea Herald
Enhancing bank services, safety measure for electric cars
The Korea Herald republishes a weekly legislative report by local law firm DR & AJU LLC to provide the latest information on bills approved, proposed, pending and set to be promulgated. -- Ed. Proposed Bill: Partial Amendment to the Insurance Business Act Proposed by Rep. Cha Gyu-geun (Rebuilding Korea Party) ● This amendment mandates that stocks issued by affiliates of an insurance company and held by the company be valued at market prices rather than acquisition costs. It also sets a cap on the total value of these holdings, limiting them to 3 percent of the company's total assets. Proposed Bill: Partial Amendment to the Banking Act Proposed by Rep. Choi Eun-seok (People Power Party) ● To improve access to financial services in rural areas and enhance user convenience, this amendment permits non-financial institutions, such as post offices, to offer bank agency services. Pending Bill: Partial Amendment to the Financial Investment Services and Capital Markets Act Proposed by Rep. Yoon Han-hong (People Power Party) ● This amendment clarifies the duty of directors to protect shareholder interests by specifying that in the event of a merger, an essential business or an asset transfer, an all-inclusive stock swap or transfer, or a split or split and merger, the board of directors must make every effort to protect shareholders' legitimate interests. Competent authority: Ministry of Land, Infrastructure and Transport ● To address growing concerns about fire-related accidents involving electric cars, this bill requires domestic electric car manufacturers to obtain government safety certification for the batteries used in their vehicles before launching them on the market. ● To address a personnel shortage in the electrical construction industry, this amendment relaxes the requirements for intermediate electrical construction engineers by recognizing individuals without formal educational qualifications in the field but who have specialized work experience and expertise in electrical construction as qualified for the position of intermediate electrical construction engineers.
Korea Herald
20-02-2025
- Business
- Korea Herald
Samsung Life sees limited impact from Samsung Fire subsidiary plan
Samsung Life rules out additional stake in Samsung Fire post-affiliation, vows to boost shareholder returns Samsung Life Insurance said Thursday that it expects limited impact on its business following its planned incorporation of Samsung Fire & Marine Insurance as a subsidiary. "The subsidiary incorporation will have no impact on the company's profits or capital ratio, nor will there be any changes in overall business management," Samsung Life's Chief Financial Officer Lee Wan-sam said during an earnings call earlier in the day. However, given that both firms are market leaders in their respective insurance sectors, synergy is expected, particularly as the boundaries between life and general insurance continue to blur amid evolving consumer needs. Like other life insurers, Samsung Life has been expanding into the health insurance sector in recent years. "The two companies are already active in the overlapping health insurance sector. Within legal boundaries, we will pursue further synergy through cross-selling and joint investments in alternative assets," Lee added. The comments follow Samsung Life's application for regulatory approval from the Financial Services Commission last week for the subsidiary affiliation. Industry watchers estimate the review process will take about two months. This move comes after Samsung Fire's January announcement of plans to reduce its 15.9 percent treasury shareholding to below 5 percent by 2028 as part of efforts to enhance corporate value and boost shareholder returns. If the affiliation is approved, Samsung Life's stake in Samsung Fire will increase from 14.98 percent to 16.93 percent, surpassing the 15 percent cap set by local insurance regulations. Under the Insurance Business Act, an insurer must incorporate another insurer as a subsidiary if its stake exceeds this threshold. While Samsung Life could alternatively sell shares to comply with the cap, industry analysts believe subsidiary incorporation is the more likely outcome. A key concern had been the overhang risk before any potential stake sale, as uncertainty over a divestment could have prompted investors to offload shares preemptively, potentially driving down stock prices. However, following Samsung Life's formal application for subsidiary affiliation submitted to the FSC last Wednesday, this overhang risk subsided, triggering a rally in both insurers' stock prices. Samsung Life surged 15.1 percent, while Samsung Fire jumped 18.5 percent over the next two trading days. Selling shares also carries the risk of weakening Samsung Life's dominant position within Samsung Group's governance structure. Currently, Samsung Electronics Chairman Lee Jae-yong holds an 18.9 percent stake in Samsung C&T, which in turn owns 19.34 percent of Samsung Life. Samsung Life, in turn, is the largest shareholder of both Samsung Fire and Samsung Electronics, reinforcing Lee's control over the group's key business divisions. Any reduction in Samsung Life's stake in Samsung Fire would require careful management to preserve this strategic power structure. While some industry insiders speculated that Samsung Life might further increase its stake in Samsung Fire post-affiliation, the company dismissed the possibility on Thursday, stating it has no plans to expand its holdings at this time. Meanwhile, Samsung Life reaffirmed its commitment to increasing shareholder returns, setting a 50 percent shareholder return rate for this year, largely boosted by strong earnings in 2024. In 2024, the company posted a net profit exceeding 2 trillion won ($1.4 billion). "We aim to enhance corporate value by maintaining an appropriate capital ratio while ensuring a stable and steadily increasing shareholder return rate," the CFO said.
