The Financial Supervisory Service confirmed that the insurance designers affiliated with the corporate insurance agency (GA) participated in illegal fundraising activities in an organized manner and immediately revoked the company's registration qualifications. This is one of the strongest measures taken by the Financial Supervisory Service against large-scale illegal activities occurring in the insurance industry.
On December 22, the Financial Supervisory Service stated that after receiving reports about a designer under GA named P.S Fine Service colluding with PS Financial Loan Company to conduct illegal fundraising (referring to the illegal financing method of raising funds from an unspecified number of people without permission), an on-site investigation was immediately launched. The investigation results revealed that 67 designers, including a representative from GA, were suspected of facilitating 415 insurance clients to lend funds to the loan company, totaling 111.3 billion Korean Won.
The problem is that approximately 29.4 billion Korean won in funds could not be recovered during this process, directly leading to losses. This has caused hundreds of consumers to suffer economic losses. The financial authorities have determined that such behavior constitutes "loan brokerage business," which is strictly prohibited under the Insurance Business Act, and have decided to impose the highest level of sanctions by revoking GA's registration.
In addition, the Financial Supervisory Service has requested personnel measures such as suspension or dismissal recommendations for 8 executives, including the representative director of GA. It has been confirmed that 67 employees and designers who directly or indirectly participated in the related illegal activities have been reported to the prosecution and other investigative agencies. Given that clear signs of organized participation have been found, there is a possibility of future criminal liability being pursued.
Meanwhile, the Financial Supervisory Service pointed out that settlement support funds (payments made to newly hired designers for a certain period, aimed at stabilizing their business) are at risk of being misused for interest-free or low-interest loans, and stated that it is studying the inclusion of these funds in the fee regulatory scope. Authorities plan to establish stricter oversight standards for various systems of GA operations that have "loan-like" characteristics in the future.
This incident is seen as exposing systemic loopholes in the flow of funds in the insurance designer market. If similar settlement support funds or fund brokerage activities occur repeatedly, it may not only lead to a decline in the reputation of the entire GA industry but also further exacerbate the losses for insurance consumers. The industry is closely watching what substantial management plans the financial authorities will formulate in the future.