[Asia Economy Reporter Changhwan Lee] Meritz Fire & Marine Insurance has produced a large number of top earners in the insurance industry during the first half of this year. Several executives received higher salaries than the Chief Executive Officer (CEO). This is seen as a result of Meritz Financial Group's unique performance-oriented culture.
According to the insurance industry on the 19th, the highest-paid person in the domestic insurance industry during the first half of this year was Kim Jong-min, Vice President of Meritz Fire & Marine Insurance, who received 2.19686 billion KRW. Although Vice President Kim, the head of asset management, had a salary of 124.4 million KRW, his bonus reached 2.064 billion KRW.
Vice President Kim, who came from a securities firm, was recruited by Meritz Fire & Marine Insurance in 2014 to strengthen asset management capabilities. He is credited with raising Meritz Fire & Marine Insurance's asset management yield to around 4%, the highest level in the industry, through aggressive asset management. His asset management skills are also considered a factor in Meritz Fire & Marine Insurance's record-breaking annual performance.
Recognizing his contributions, he was remarkably appointed as the second-ever vice president in his 40s within Meritz Financial Group at the end of last year, following Kim Yong-beom, the Vice Chairman and CEO of Meritz Fire & Marine Insurance. The fact that his performance bonus exceeded 2 billion KRW in the first half is also attributed to this background.
Following Vice President Kim, Lee Beom-jin, another vice president of the same company, received 2.11861 billion KRW in the first half, ranking second in the insurance industry's salary rankings. Vice President Lee is credited with significantly contributing to the increase in the company's insurance operating profit by overseeing Meritz Fire & Marine Insurance's corporate insurance. His bonus also reached 1.98405 billion KRW.
Yongbeom Kim, CEO of Meritz Fire & Marine Insurance
Kim Yong-beom, Vice Chairman and CEO of Meritz Fire & Marine Insurance, received the third-highest salary of 2.0354 billion KRW. Kim has been leading Meritz Fire & Marine Insurance since 2015. Before his appointment, Meritz Fire & Marine Insurance was ranked fifth in the non-life insurance industry, but through aggressive management, it has risen to the top three in terms of profit.
Despite not being the largest company in the industry, Meritz Fire & Marine Insurance has produced many top earners due to Meritz Financial Group's thorough performance-oriented corporate culture.
Jo Jung-ho, Chairman of Meritz Financial Group, manages the group with a performance-based management philosophy centered on key talents. Meritz Fire & Marine Insurance, a core affiliate, also has clearer performance-based differentiation compared to other non-life insurers. In the past, employees with poor performance were often let go through voluntary retirement and restructuring.
The average salary of Meritz Fire & Marine Insurance employees in the first half of this year was 78.29 million KRW, a 26% increase from 62.3 million KRW in the same period last year. The salary gap widened compared to larger non-life insurers such as Samsung Fire & Marine Insurance (45.04 million KRW), Hyundai Marine & Fire Insurance (43 million KRW), and DB Insurance (52.45 million KRW).
An industry insider said, "Meritz Fire & Marine Insurance tends to have relatively large performance rewards compared to other non-life insurers," adding, "This is due to the performance-oriented management philosophy of the owner and CEO."
Following the top three at Meritz Fire & Marine Insurance, the insurance sector salary rankings include Chung Mong-yoon, Chairman of Hyundai Marine & Fire Insurance, who received 1.546 billion KRW in the first half. Kim Jung-nam, Vice Chairman and CEO of DB Insurance, followed with 835 million KRW. Hyundai Marine & Fire Insurance CEO Jo Yong-il received 599 million KRW, Hanwha Life CEO Yeo Seung-joo received 592 million KRW, and Samsung Life CEO Jeon Young-mook received 538 million KRW.
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