Insurance Companies Seek Legal and Medical Experts as Outside Directors

On the 20th, Samsung Fire & Marine Insurance Leads a Series of Regular Shareholder Meetings
Strengthening Internal Controls and Legal Enforcement
Growing Need for Legal and Medical Experts

Major domestic insurance companies are actively recruiting legal and medical professionals. This is interpreted as an effort to build political and business networks after the general election and to respond to legal dispute issues such as internal control and medical insurance fraud.

Among large insurers, Samsung Fire & Marine Insurance is the first to hold its regular shareholders' meeting. At the meeting on the 20th, Samsung Fire will approve the appointment of Sung Young-hoon, a former prosecutor general and former chairman of the Anti-Corruption and Civil Rights Commission, as an outside director. Born in 1960, Sung graduated from Yonsei University’s Department of Law, passed the 25th Judicial Examination, and served as chief prosecutor of Gwangju District Prosecutors' Office, head of the Public Trial and Litigation Department at the Supreme Prosecutors' Office, and chairman of the Anti-Corruption and Civil Rights Commission. He is currently working as a lawyer at the law firm Bae, Kim & Lee LLC. At last year’s shareholders' meeting in March, Samsung Fire appointed former Supreme Court Justice Kim So-young. Half of the four outside directors are expected to be legal professionals.

Hanwha Life Insurance will also approve the appointment of two legal professionals as new outside directors at its shareholders' meeting on the 21st. The candidates are Park Soon-chul, a former chief prosecutor born in 1964, and Jeong Soon-seop, a professor at Seoul National University Law School, who is the same age. Park, who passed the 34th Judicial Examination, served as chief prosecutor of Changwon, Uijeongbu, and Seoul Southern District Prosecutors' Offices and is currently a lawyer at the law firm Heunmoe. During President Yoon Seok-yeol’s tenure as Prosecutor General, Park served as chief prosecutor of the Southern District Prosecutors' Office and led the investigation into the Lime Asset Management scandal. Professor Jeong is an expert in financial regulatory law, having served as an assistant and associate professor at Seoul National University Law School and currently a law school professor. He has held positions such as non-standing commissioner of the Financial Services Commission, member of the Financial Supervisory Service’s Sanctions Committee, and chairman of the Financial Investment Association’s Self-Regulatory Committee.

Medical professionals have also been nominated as outside director candidates by major insurers. Samsung Life Insurance will appoint Lim Chae-min, former Minister of Health and Welfare, as a new outside director at its shareholders' meeting on the 21st. Born in 1958, Lim graduated from Seoul National University’s Department of Western History and entered public service by passing the 24th Administrative Examination. He served as the 49th Minister of Health and Welfare during the Lee Myung-bak administration. At that time, he promoted the amendment of the Pharmaceutical Affairs Act to allow over-the-counter drugs to be sold at convenience stores. He is currently serving as an advisor at the law firm Kwangjang.

DB Insurance will appoint Kim Cheol-ho, an outpatient physician at Bundang Seoul National University Hospital, as a new outside director at its shareholders' meeting on the 22nd. Born in 1955, Kim graduated from Seoul National University College of Medicine and has worked in cardiology and geriatric medicine at Boramae Medical Center, Seoul National University Hospital, and Bundang Seoul National University Hospital. He has also served as director of the Geriatric Medical Center at Bundang Seoul National University Hospital and president of the Korean Geriatrics Society.

The enthusiasm of insurance companies to recruit legal and medical professionals is related to the industry's characteristics. Legal disputes over insurance payments and incomplete sales are frequent, and recently, large-scale insurance fraud involving collusion between hospitals and brokers has increased, making legal and medical experts highly sought after. The preference for legal professionals is also a major factor as the financial sector overall strengthens internal controls. Candidates who combine legal and medical expertise with experience and networks in political and business circles are even more preferred. An industry insider said, "With the upcoming implementation of the Special Act on Insurance Fraud Prevention and the simplification of actual expense claims this year, managing legal and medical risks has become crucial," adding, "The newly recruited outside directors will play various roles such as internal monitoring and management advice."