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November 24, 2011updated 13 Apr 2017 8:47am

Korean insurers taken to task for colluding

Koreas competition authority, the Korea Fair Trade Commission (KFTA), has come down heavily on some of the big-names in the countrys life insurance industry, dishing out fines totalling KRW365.3bn ($325m) to 16 insurers which it accused of having operated as a cartel between 2001 and 2006

By LII editorial

Korea’s competition authority, the Korea Fair Trade Commission (KFTA), has come down heavily on some of the big-names in the country’s life insurance industry, dishing out fines totalling KRW365.3bn ($325m) to 16 insurers which it accused of having operated as a cartel between 2001 and 2006.

The KFTA ruled that the insurers had colluded to fix assumed and credited interest rates on insurance products sold to individuals.

Samsung Life, the country’s biggest life insurer, had the dubious honour of receiving the biggest fine: KRW1.578bn.

Samsung Life was followed by Kyobo Life (KRW1.342bn) and Korea Life (KRW486m). Far smaller fines were imposed on the remaining 13 which included foreign insurers Allianz Life (KRW66m), AIA Life (KRW23m), ING Life (KRW17m) and MetLife (KRW11m).

All the fines imposed are potentially subject to change.

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